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Nielsen Monitor-Plus: U.S. ad spending up 4.5% through Q3

Ad spend through Q3 rose 4.5% over the same period last year, due to gains across major media, according to preliminary from Nielsen Monitor-Plus.

Ad spending increased in almost all reported media, led by Internet, Spanish-Language TV and Cable TV. Local Magazines continue to show healthy gains. A number of media haven't shown much movement through the third quarter including Spot TV in the smaller markets, Local Newspapers, and Network Radio. Coupons were flat.

"Network TV showed positive growth through the first half of 2005. However, the absence of the Olympics in third quarter resulted in a year-to-date decline," said Jeff King, managing director of Nielsen Monitor-Plus. The increase in Spot TV in the top 100 markets was a result of growth in the automotive, retail, and insurance/real estate industries.

Advertising through the third quarter for the top 10 companies reached over 14 billion, up 1.8% from last year. Most advertisers experienced growth. Although DaimlerChrysler cut back 5.6%, overall the automotive companies show healthy gains, accounting for 5.4 billion in spending, with an increase of 2.9%.

Spending for the 10 largest categories reached over 31 billion through the third quarter, 5.1% greater than the same period last year. Most product categories have increased spending, with the exception of Local Automotive Dealerships and Department Stores, which are each slightly down. The Restaurant industry was the fastest growing in terms of percent increase over last year.

Top 10 Advertisers

January - September 2005

Qtr 1-3 2005        ($ Mil)

‘04 vs.

’05 % Change

General Motors Corp.                                     

$2,548

7.3%

Procter & Gamble Co.

$2,528

-2.8%

Ford Motor Co.                                              

$1,640

3.8%

DaimlerChrysler AG

$1,297

-5.6%

Time Warner Inc. 

$1,206

15.5%

Johnson & Johnson

$1,132

17.9%

Altria Group Inc.

$971

15.3%

PepsiCo Inc.

$952

23.8%

Walt Disney Co.

$896

-11.2%

AT&T Inc.

$885

-28.9%

Total    

$14,059

1.8%

Note: Automotive Advertisers reflects Factory and Dealer Association spending

Based on spending estimates in the following media: Network TV, Cable 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 – September 2005

Q1-3 2005

($ Mil)

 ‘04 vs.

‘05

% Change

Automotive: Factory & Dealer Assoc.

$9,784

4.7%

Automotive Dealerships-Local

$3,818

-0.4%

Prescription Drugs/Pharmaceutical

$3,482

4.8%

Restaurants-Quick Service

$2,908

9.2%

Motion Picture

$2,612

1.2%

Department Stores

$2,534

-1.2%

Telephone Services-Wireless

$2,134

15.6%

Direct Response Products

$1,512

8.3%

Credit Card Services

$ 1,278

10.3%

Restaurants

$ 1,170

15.8%

Total

$31,223

5.1%

Source: Nielsen Monitor-Plus

Based on spending estimates in the following media: Network TV, Cable 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

Nielsen's Product Placement tracking service continues to show significant growth in the integration of product occurrences in primetime broadcast network programming. The top 10 brands in the product placement category totaled 12,445 occurrences through the third quarter of the year.

The top 10 programs that featured product placements in the first half accounted for 27,244 occurrences. The Contender was the number one program, with more than double the amount of product placements than the number two program, American Idol, 7,514 and 3,497, respectively. Interestingly, these two programs are currently not on air, yet still represent the largest number of product placements. Many of The Contender's placements were for Everlast Apparel and Sporting Equipment, while American Idol's was for Coca-Cola.

Top 10 Programs: Product Placement

Jan - Sept 2005

Program 

Network

Total # Occurrences

The Contender

NBC

7,514

American Idol

FOX

3,497

What I Like About You

WB

2,544

Extreme Makeover Home Edition

ABCWB

2,480

King Of Queens

CBS

2,139

The Apprentice

NBC

1,996

Amazing Race

CBS

1,898

Rock Star INXS

CBS

1,834

EVE

UPN

1,692

The Road To Stardom With Missy Elliot

UPN

1,650

Total

27,244

Source: Place*Views, Nielsen Product Placement service


Top 10 Brands: Product Placement

Jan - Sept 2005

Brand 

 Total # Occurrences

Coca-Cola Classic Reg Soft Drink

2,818

Everlast Apparel

1,651

Everlast Sporting Equip

1,381

Gatorade Drinks-Isotonic

1,196

Nike Apparel

1,109

Chef Revival Apparel

973

SLS Electronic Equip Speakers

860

Home Depot Stores

838

Toyota Autos & Trucks 

825

Sierra Mist Reg Soft Drink

794

Total

12,445

Source:  Place*Views, Nielsen Product Placement service





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