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TNS: US ad spend grew 4.1% in first half of '06
Total advertising expenditures in the first six months of 2006 increased 4.1% to 73 billion as compared to the prior year period, according to TNS Media Intelligence, the leading provider of strategic advertising and marketing information.
Spanish Language Media, paced by an enormous surge in June ad spending associated with the World Cup event, rose 20.5% to 2.40 billion. Internet display advertising, riding five consecutive quarters of double-digit growth, rose 18.9% to 4.69 billion for the half-year.
Expenditures on Network TV advanced 5.7% in the first half to 12.28 billion. Excluding February, when the Winter Olympics were telecast, the medium was up 1.2% for the remainder of the first half. Consumer Magazines encountered softening demand during the second quarter and finished the half year with a 4.4% increase in spending, to 10.90 billion.
Local Newspapers, confronted with over 600 million in reduced automotive spending year-to-date, saw total expenditures erode by 3.9% to 11.65 billion. Radio media also lagged, down a combined 1.4% to an aggregate of 5.26 billion.
The Internet continues to grow its share of total advertising expenditures. For the first half of 2006, the Internet accounted for 6.4% of total ad spending, up from 5.6% a year ago. Newspapers lost 1.3 share points over this period, slipping to 18.6% of expenditures and falling behind magazines.
The top 10 advertisers in the first half of 2006 spent 9.29 billion, 0.6% less than the prior year period. Extending outwards to the top 50 advertisers, a group that accounts for one-third of total ad spending, expenditures fell 1.0%. Beyond the top 50, outlays advanced a healthy 6.8%, continuing a recent trend of middle-tier spenders lifting the overall ad market.
Procter & Gamble strengthened its grip on the top spot with 1.60 billion in spending, up 8.0% versus last year. Telecommunication companies continued their vigorous spending with AT&T up 32.9% to 1.18 billion and Verizon up 13.3% to 948 million. Toyota entered the top 10 with expenditures of 636 million.
General Motors pared its budgets by over 270 million in the second quarter and finished the half year at 1.29 billion, a 17.4% decrease. Johnson & Johnson reduced its expenditures by 21.3% and has now cut spending in four consecutive quarters. Declines were also registered at Time Warner (-13.5%), Walt Disney (-7.5%) and News Corp. (-8.1%). At each of these companies, the reductions came primarily from the movie divisions.
The Telecommunications category maintained its top position with 4.70 billion in expenditures, up 16.6%. In addition to higher spending from AT&T and Verizon, aggressive marketing at Vonage and Deutsche Telekom also contributed to the gain.
Financial Services was the second largest category, growing 7.9% to 4.33 billion due to credit cards and investment brokers. Other categories posting strong results were Local Services & Amusements, up 11.8% to 4.26 billion, and Direct Response, up 7.4% to 3.16 billion.
Automotive, which occupied the top two spots in the rankings as recently as year end 2005, tumbled to the middle of the pack. Reductions were widespread among both factories and local dealers, pushing Foreign Auto advertising down 3.8% to 4.17 billion and Domestic Auto down 13.3% to 3.79 billion. Automotive advertising has declined in four consecutive quarters and the aggregate cutbacks during the past 12 months amount to 1.4 billion, or approximately 1% of total annual expenditures for all media.
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Advertising Spending by Media: First Half 2006 vs. First Half 20051
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MEDIA
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Jan-June 2006
(Millions)
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Jan-June 2005
(Millions)
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% CHANGE
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NETWORK TV
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$12,277.3
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$11,614.0
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5.7%
|
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NEWSPAPERS (LOCAL)
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$11,645.2
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$12,120.2
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-3.9%
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CONSUMER MAGAZINES
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$10,902.5
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$10,446.8
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4.4%
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CABLE TV
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$8,142.1
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$7,935.8
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2.6%
|
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SPOT TV2
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$7,691.8
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$7,339.3
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4.8%
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INTERNET3
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$4,692.0
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$3,947.3
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18.9%
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LOCAL RADIO4
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$3,554.3
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$3,607.3
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-1.5%
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SPANISH LANGUAGE MEDIA5
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$2,400.8
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$1,992.1
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20.5%
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B-TO-B MAGAZINES
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$2,181.9
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$2,207.0
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-1.1%
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SYNDICATION – NATIONAL
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$2,109.1
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$1,994.6
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5.7%
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OUTDOOR
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$1,832.7
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$1,693.9
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8.2%
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NATIONAL NEWSPAPERS
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$1,766.4
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$1,668.5
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5.9%
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NATIONAL SPOT RADIO
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$1,226.0
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$1,243.3
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-1.4%
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FSI's6
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$954.3
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$788.9
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21.0%
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SUNDAY MAGAZINES
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$891.0
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$805.4
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10.6%
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NETWORK RADIO
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$484.1
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$486.9
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-0.6%
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LOCAL MAGAZINES
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$226.3
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$204.6
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10.6%
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TOTAL
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$72,977.9
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$70,096.0
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4.1%
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Source: TNS Media Intelligence
1. Figures are based on the TNS Media Intelligence Stradegy multimedia ad expenditure database across all TNS MI measured media, including: Network TV; Spot TV; Cable TV (44 networks); Syndication TV; Hispanic Network TV; Consumer Magazines (220 publications);,Sunday Magazines (6 publications); Local Magazines (27 publications); Hispanic Magazines (31 publications); Business-to-Business Magazines (419 publications); Local Newspapers (143 publications); National Newspapers (3 publications); Hispanic Newspapers (54 publications); Network Radio; Spot Radio; Local Radio; Internet; and Outdoor. Figures do not include public service announcement (PSA) data.
2. Spot TV figures do not include Hispanic Spot TV data.
3. Internet figures do not include paid search advertising.
4. Local Radio includes expenditures for 34 markets in the U.S.
5. Spanish Language Media includes expenditures from Hispanic Network and Cable TV (Univision, Telemundo, Telefutura and Galavision); Hispanic Spot TV; Hispanic Magazines (35 publications); and Hispanic Newspapers (54 publications).
6. FSI data represents distribution costs only.
7. The sum of the individual media may differ from the total due to rounding.
Share of Spending By Media
The Internet continues to grow its share of total advertising expenditures. For the first half of 2006, the Internet accounted for 6.4 percent of total ad spending, up from 5.6 percent a year ago. Newspapers lost 1.3 share points over this period, slipping to 18.6 percent of expenditures and falling behind magazines
Share of Advertising Spending by Media: First Half 2006 vs. First Half 20058
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MEDIA TYPE
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Jan-June 2006
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Jan-June 2005
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TELEVISION
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44.3%
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43.7%
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MAGAZINES
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19.6%
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19.6%
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NEWSPAPERS
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18.6%
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19.9%
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RADIO
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7.2%
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7.6%
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INTERNET
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6.4%
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5.6%
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ALL OTHER
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3.8%
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3.5%
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TOTAL
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100.0%
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100.0%
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|
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Source: TNS Media Intelligence
8. The sum of the individual media differs from the total due to rounding.
Ad Spending by Advertiser
The top 10 advertisers in the first half of 2006 spent $9.29 billion, 0.6 percent less than the prior year period. Extending outwards to the top 50 advertisers, a group that accounts for one-third of total ad spending, expenditures fell 1.0 percent. Beyond the top 50, outlays advanced a healthy 6.8 percent, continuing a recent trend of middle-tier spenders lifting the overall ad market.
Procter & Gamble strengthened its grip on the top spot with $1.60 billion in spending, up 8.0 percent versus last year. Telecommunication companies continued their vigorous spending with AT&T up 32.9 percent to $1.18 billion and Verizon Communications up 13.3 percent to $948 million. Toyota Motor Corporation entered the top 10 with expenditures of $636 million.
General Motors pared its budgets by over $270 million in the second quarter and finished the half year at $1.29 billion, a 17.4 percent decrease. Johnson & Johnson reduced its expenditures by 21.3 percent and has now cut spending in four consecutive quarters. Declines were also registered at Time Warner (-13.5 percent), Walt Disney (-7.5 percent) and News Corp. (-8.1 percent). At each of these companies, the reductions came primarily from the movie divisions.
Top Ten Advertisers: First Half 2006 vs. First Half 20059
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ADVERTISER
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Jan-June 2006
(Millions)
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Jan-June 2005
(Millions)
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% Change
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PROCTER & GAMBLE CO
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$1,601.4
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$1,483.2
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8.0%
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GENERAL MOTORS CORP
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$1,285.4
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$1,556.1
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-17.4%
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AT&T INC
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$1,177.3
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$886.1
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32.9%
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VERIZON COMMUNICATIONS INC
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$948.0
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$836.4
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13.3%
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TIME WARNER INC
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$857.1
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$991.0
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-13.5%
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FORD MOTOR CO
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$841.2
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$779.3
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7.9%
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WALT DISNEY CO
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$684.8
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$739.9
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-7.5%
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TOYOTA MOTOR CORP
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$636.3
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$590.9
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7.7%
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NEWS CORP
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$634.3
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$690.2
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-8.1%
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JOHNSON & JOHNSON
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$624.9
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$793.6
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-21.3%
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TOTAL
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$9,290.8
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$9,346.8
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-0.6%
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|
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Source: TNS Media Intelligence
9. Figures do not include FSI, House Ads or PSA activity
Ad Spending by Category
The Telecommunications category maintained its top position with $4.70 billion in expenditures, up 16.6 percent. In addition to higher spending from AT&T and Verizon, aggressive marketing at Vonage and Deutsche Telekom also contributed to the gain.
Financial Services was the second largest category, growing 7.9 percent to $4.33 billion due to credit cards and investment brokers. Other categories posting strong results were Local Services & Amusements, up 11.8 percent to $4.26 billion, and Direct Response, up 7.4 percent to $3.16 billion.
Automotive, which occupied the top two spots in the rankings as recently as year end 2005, tumbled to the middle of the pack. Reductions were widespread among both factories and local dealers, pushing Foreign Auto advertising down 3.8 percent to $4.17 billion and Domestic Auto down 13.3 percent to $3.79 billion. Automotive advertising has declined in four consecutive quarters and the aggregate cutbacks during the past 12 months amount to $1.4 billion, or approximately 1 percent of total annual expenditures for all media.
Top Ten Advertising Categories: First Half 2006 vs. First Half 200510
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CATEGORY
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Jan-June 2006
(Millions)
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Jan-June 2005
(Millions)
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% Change
|
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TELECOM
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$4,698.7
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$4,030.0
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16.6%
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FINANCIAL SERVICES
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$4,329.5
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$4,013.6
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7.9%
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LOCAL SERVICES & AMUSEMENTS
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$4,259.6
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$3,811.4
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11.8%
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AUTO, FOREIGN
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$4,170.0
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$4,336.3
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-3.8%
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AUTO, DOMESTIC
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$3,787.8
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$4,369.5
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-13.3%
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MISC RETAIL11
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$3,611.7
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$3,637.4
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-0.7%
|
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DIRECT RESPONSE
|
$3,161.6
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$2,943.1
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7.4%
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PERSONAL CARE PDTS
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$2,921.7
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$2,833.5
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3.1%
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TRAVEL & TOURISM
|
$2,864.7
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$2,944.3
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-2.7%
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RESTAURANTS
|
$2,658.7
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$2,500.6
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6.3%
|
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Source: TNS Media Intelligence
10. Figures do not include FSI, or PSA activity.
11. Misc Retail does not include these retail segments: Department Stores, Food Stores; Home Furnishing & Appliance Stores
Among mid-size categories outside the top 10, robust growth was exhibited by Real Estate (+31.3 percent to $1.67 billion); Insurance (+20.9 percent to $1.60 billion); and Computer Products (+11.7 percent to $1.25 billion).
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