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U.S. ad spend rose 2.4% Q1

Advertising spending for Q1 rose 2.4% over the same period last year, due to gains across major media, according to preliminary figures released today by Nielsen Monitor-Plus.

Advertising spending increased in almost all reported media, led by Spanish-Language TV, Cable TV, and Magazines. Network Radio and National Newspaper were essentially flat, while Coupon and the top 100 Spot TV markets showed declines. "Taking a closer look at Spot TV's performance for the quarter, the medium was down 3.9% overall; however, the smaller 101-210 DMAs experienced a steady 3.4% growth", said Jeff King, managing director of Nielsen Monitor-Plus.

Q1 ad spend for the top 10 companies reached 4.8 billion, up 8.1% from last year. Nearly every advertiser experienced growth. As usual, the automotive companies show healthy gains, accounting for 2.3 billion in spending, nearly half of the top 10 total.

Spending for the 10 largest categories reached 9.9 billion in the first quarter, 3.9% greater than the same period last year. The Credit Card Services category, which continues to be the fastest growing in terms of% increase (30.5%), continues to increase ad spending, exceeding 404 million dollars. Prescriptions Drugs, typically a category that shows substantial growth, has cut back spending 29 million (-2.8%).

Nielsen's Product Placement tracking service shows significant growth in the integration of product occurrences in primetime broadcast network programming. The top 10 brands in the product placement category totaled 6,020 occurrences during Q1.

Says King: "Illustrating just how quickly product placement is growing, the number one brand, Coca-Cola Classic, had 1,931 brand occurrences for the quarter, compared to 2,320 for all of last year." Coca-Cola Classic was also the number one brand for 2004. Coca-Cola Classic had nearly three times the number of occurrences than the number two brand, Everlast Apparel (691 occurrences). This is in part due to the brand's relationship with American Idol.

The top 10 programs that featured product placements in Q1 accounted for 12,867 occurrences. Further pointing to the rapid growth of this medium, this one quarter's occurrences (12,867) is more than half the brand occurrences for the Top 10 Programs in FY 2004 (23,526).



Top 10 Advertisers

January – March 2005

 

Q1 2005 ($ Mil)

% Change

General Motors Corp.      

$812

5.8%

Procter & Gamble Co.   

$677

-8.2%

Ford Motor Co.

$624

23.2%

Toyota Motor Corp.

$442

14.5%

DaimlerChrysler AG

$430

0.6%

Time Warner Inc.

$424

16.0%

Johnson & Johnson

$400

21.4%

Walt Disney  Co.

$392

-3.5%

Altria Group

$351

38.2%

SBC Communications

$295

-3.6%

Total    

$4,846

8.1%

Source: Nielsen Monitor-Plus
Note:
Automotive Advertisers reflects Factory and Dealer Association spending
Based on spending estimates in the following media: Network TV, Spot TV, Syndicated TV, Hispanic TV, Nat’l/Local Magazine, Network/Spot Radio, Outdoor, FSI (CPGs only), Nat’l/Local Newspapers (display ads only), Nat’l/Local Sunday Supplements


Top 10 Product Categories

January – March 2005

 

Q1 2005
($ Mil)

Q1 ‘04 vs.
Q1 ‘05
$ Change

Q1 ‘04 vs.
Q1 ‘05
$%Change

Automotive: Factory & Dealer Assoc.

$3,185

$124

4.1

Automotive Dealerships-Local

$1,239

$2

0.1

Prescription Drugs

$985

-$29

-2.8

Restaurants-Quick Service

$931

$101

12.2

Motion Picture

$814

-$102

-11.2

Department Stores

$737

-$6

-0.7

Telephone Services-Wireless

$692

$104

17.7

Direct Response Products

$543

$45

8.9

Credit Card Services

$404

$94

30.5

Restaurants

$368

$35

10.6

Total

$9,897

$369

3.9

Source: Nielsen Monitor-Plus
Based on spending estimates in the following media: Network TV, Spot TV, Syndicated TV, Hispanic TV, Nat’l/Local Magazine,  Network/Spot Radio, Outdoor, FSI (CPGs only), Nat’l/Local Newspapers (display ads only), Nat’l/Local Sunday Supplements

Top 10 Brands: Product Placement

Q1 2005

Brand 

 Total # Occurrences

Coca-Cola Classic Reg. Soft Drink

1,931

Everlast Apparel

691

Everlast Sporting Equipment

634

Adidas Apparel

476

Sports Illustrated Magazine

475

Nike Apparel

466

Gatorade Drinks-Isotonic

441

Home Depot Store

324

Toyota Autos & Trucks

319

New York Yankees Baseball Team

263

Total

6,020

Source:  Place*Views, Nielsen Product Placement service
























Top 10 Programs: Product Placement

Q1 2005

Program 

Network

Total # Occurrences

The Contender

NBC

2,828

American Idol

FOX

2,373

The Road To Stardom With Missy Elliott

UPN

1,650

Amazing Race

CBS

1,140

The Apprentice

NBC

978

Extreme Makeover Home Edition

ABC

916

Sports Illustrated Swimsuit Model Search

NBC

792

What I Like About You

WB

783

King Of Queens

CBS

747

Fear Factor

NBC

660

Total

 

12,867

Source: Place*Views, Nielsen Product Placement service

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