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US ad spend rose 5.7% in first half of 2005

Ad spending for the first half of 2005 rose 5.7% over the same period last year, due to gains across major media, according to figures released by Nielsen Monitor-Plus. Ad spend increased in almost all reported media, led by Spanish-Language TV, Cable TV, and Internet. A number of media haven't shown much movement through the first half including Newspapers, Coupons, Top 100 Spot TV markets, and Network Radio.

"Ad spending continues to strengthen in 2005, with the second quarter outpacing the first. In particular, spending for the Top 100 Spot Television markets was down in the first quarter, but bounced back to a 3.1% gain in the second quarter," said Jeff King, managing director of Nielsen Monitor-Plus.

Q1 ad spend for the top 10 companies reached 9.5 billion, up 7.7% from last year. Most advertisers experienced growth. Although DaimlerChrysler cut back 7.8%, overall the automotive companies show healthy gains, accounting for $3.8 billion in spending, with an increase of 7.5%. Johnson & Johnson and Altria also continue to climb in 2005.

Spending for the 10 largest categories reached 21 billion in the first half, 5.4% greater than the same period last year. Most product categories have increased spending, with the exception of Motion Pictures and Department Stores, which are slightly down. The Credit Card industry remains the fastest growing in terms of percent increase over last year. For the last several years, the Prescription Drug industry has experienced substantial growth in advertising spending. However this year, possibly as a result of more public scrutiny of the large Pharmaceutical Companies, spending has leveled off.

See more from the report in AdBiz.










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