Total advertising expenditures in the first three months of 2006 increased 5.2% to 34.9 billion as compared to the prior year period, according to TNS Media Intelligence.

Internet display advertising led all media forms in percentage growth, rising 19.4% to 2.31 billion as leading blue chip advertisers continued to expand their online marketing programs. For the quarter, the Top 100 companies, as ranked by total measured ad expenditures, accounted for 34.7% of all Internet display spending.

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The Winter Olympics helped boost Network TV spending to 6.52 billion for the quarter, a gain of 12.3%. Spanish Language Media also paced strongly, up 14.2% to 1.05 billion. Spot TV benefited from the biennial cycle of Olympics and early political spending to grow 6.4% to 3.90 billion. Consumer Magazines monetized gains in both page counts and rate card pricing to finish with a 5.9% increase at 4.83 billion.

Local Newspapers, beset by lower spending from three important categories (retail, automotive and telecommunications), had spending of 5.55 billion, a decline of 6.1%. Radio media also lagged, down a combined 1.2% to an aggregate of 2.34 billion.

The top 10 advertisers in Q1 spent 4.76 billion, a gain of 6.9% compared to the prior year period. Individual results portray an uneven picture. Four of these ten companies registered double digit gains while three others turned in double digit declines. Procter & Gamble retained the top spot with 794 million in spending, up 13.8% against Q1 2005. General Motors holds the second position with 706 million in spending, down 1.9% in the midst of declining auto sales. AT&T, on the strength of a major re-branding campaign, had the largest growth rate among the top 10, up 51.0%. General Electric, led by its NBC Universal entertainment brands, was close behind at 43.9% growth.

The largest decrease in the group came from Time Warner, down 14.0% to 450 million. News Corp. reduced its advertising outlays by 11.6% to 303 million and Walt Disney spending fell 11.1% to 384 million. At all three companies the declines were driven by motion picture advertising.

The Telecom category rose to the top spot with 2.32 billion in expenditures, an increase of 20.4%. In addition to AT&T spending, a post-merger marketing push from Sprint Nextel contributed to the gain.

Financial Services was the second largest category, growing 10.9% to 2.15 billion behind credit cards and investment brokers. Other categories posting strong results were Local Services & Amusements, up 15.7% to 2.07 billion, and Restaurants, up 7.7% to 1.30 billion.

Automotive ceded its customary leadership position as ad spending declined for the third consecutive quarter. Reductions were widespread among both factories and local dealers, pushing Foreign Auto advertising down 2.6% to 1.98 billion and Domestic Auto down 11.0% to 1.91 billion.