Ad spending for the first half of 2006 rose by 5.1% over the same period last year, due to gains across major media, according to preliminary figures released by Nielsen Monitor-Plus. Advertising spending increased in almost all reported media, led by Internet, Spanish-Language TV and Local Magazines. A number of media haven't shown much movement through the first half including Spot Radio, Local Newspaper, B-to-B magazines, National Cable TV, FSI Coupon, and the smaller Spot TV markets.
First half advertising spending for the top 10 companies reached nearly 9.8 billion, up 3% from last year. Six advertisers experienced growth. Two out of the Big Three Auto advertisers (GM and DaimlerChrysler) cut budgets this year (3% and 13% respectively), causing a decrease of 161 million. AT&T showed a growth rate of over 50%, due to re-branding of the company combined with consolidation.
"Ad spending continues to build in strength when compared to last year, although not at the levels projected by many at the beginning of the year. Internet and Spanish-Language TV stand out as major growth media at 49% and 21.8% respectively," said Jeff King, managing director of Nielsen Monitor-Plus. "As anticipated, Internet spending continues to show exceptional growth as advertisers look for additional means to reach their target audiences, while the growth in Spanish-Language TV can largely be attributed to the World Cup."
Spending for the 10 largest categories reached 21.9 billion in the first half, 4% greater than the same period last year. Almost all product categories have increased spending, except for Local Automotive Dealerships. Wireless Telephone Services and Restaurants showed the largest percent gains (both at 14%), and Wireless Telephone Services also had the largest dollar increase at 206 million.
Nielsen's Product Placement tracking service reported a drop in the number of occurrences for the first half of 2006, one factor being "The Contender" leaving network TV. Last year, "The Contender" was the #1 primetime program featuring product placements, with 7,521 occurrences. This year "American Idol" held that #1 primetime spot with 4,086 occurrences. The top 10 programs that featured product placements in the first half of 2006 accounted for 14,643 occurrences in total.
Coca-Cola Classic was the top brand for the first half of 2006 with 3,233 occurrences, Nike apparel second with 625 occurrences. The total amount of brand occurrences was 6,451 compared to 11,455 last year.
"Only two of this year's top ten brands were on the top ten list last year. This speaks to the dynamic nature of Product Placement advertising," said Annie Touliatos, director, product development and marketing for Nielsen Media Research Product Placement Services.
