US Ad Expenditures Increased 3.0% in 2005, Reports TNS Media Intelligence Online Ad Spending Up 13%
Thursday, 02 March 2006
Total advertising expenditures in 2005 increased 3.0 percent to $143.3 billion compared to 2004, according to data released this week by TNS Media Intelligence, a provider of strategic advertising and marketing information. Total advertising spending during the fourth quarter of 2005 also advanced 3.0 percent against the same period in 2004.
“The rate of growth in advertising expenditures weakened slightly in the fourth quarter, as consumers and businesses turned a bit more cautious,” said Jon Swallen, senior vice president of research of TNS Media Intelligence. “Large blue chip advertisers, as a group, have recently cut back their ad budgets. The growth is currently coming from outside the Top 100 marketers.”
Ad Spending by Media
The majority of 19 media measured by TNS MI experienced growth during 2005. Internet display advertising registered the largest gain, up 13.3 percent to $8.3 billion on the strength of accelerated spending from dot-com brands. For the year, these online brands accounted for 49.7 percent of total Internet expenditures, the highest level since the dot-com bust.
In addition, Cable TV advanced sharply, up 11.4 percent to $15.9 billion as it continued to take share from other national media.
Other notably strong performers were Outdoor, up 9.8 percent to $3.5 billion, and Consumer Magazines, up 7.5 percent to $21.7 billion on the strength of higher rate card pricing.
Local Newspaper led with most total dollars spent at $25.1 billion, up 1.1 percent compared to 2004. Network TV was the second leading category with $22.5 billion, a decline of 0.3 percent versus the Summer Olympic year of 2004. In the fourth quarter, a period unaffected by Olympic comparisons, Network TV achieved modest growth of 4.0 percent.
Ad Spending by Media: Full Year 2005 vs. Full Year 2004:1
Media
Full Year 2005
(Millions)
Full Year 2004
(Millions)
% Change
Newspapers (Local)
$25,090.50
$24,814.40
1.10%
Network TV
$22,455.20
$22,523.40
-0.30%
Consumer Magazines
$21,688.00
$20,167.40
7.50%
Cable TV
$15,874.10
$14,248.80
11.40%
Spot TV2
$15,529.20
$17,158.70
-9.50%
Internet3
$8,322.70
$7,343.00
13.30%
Local Radio4
$7,364.90
$7,273.40
1.30%
B-to-B Magazines
$4,471.00
$4,364.60
2.40%
Syndication-National
$4,222.50
$3,930.90
7.40%
Spanish Language Media5
$4,219.20
$3,976.10
6.10%
Outdoor
$3,528.80
$3,213.00
9.80%
National Newspapers
$3,466.70
$3,303.50
4.90%
National Spot Radio
$2,604.10
$2,616.50
-0.50%
Sunday Magazines
$1,619.50
$1,497.40
8.20%
FSI’s6
$1,441.50
$1,391.90
3.60%
Network Radio
$1,009.90
$1,027.80
-1.70%
Local Magazines
$385.50
$317.70
21.30%
TOTAL7
$143,293.40
$139,168.60
3.00%
Source: TNS Media Intelligence
1. Figures are based on the TNS Media Intelligence Strategy 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 (203 publications); Sunday Magazines (5 publications); Local Magazines (26 publications); Hispanic Magazines (24 publications); Business-to-Business Magazines (428 publications); Local Newspapers (143 publications); National Newspapers (3 publications); Hispanic Newspapers (52 publications); Network Radio; Spot Radio; Local Radio; Internet; and Outdoor. Figures do not contain 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 33 markets in the U.S provided by Miller Kaplan.
5. Spanish Language Media includes expenditures from Hispanic Network and Cable TV (Univision, Telemundo, Telefutura and Galavision); Hispanic Spot TV; Hispanic Magazines; and Hispanic Newspapers.
6. FSI data represents distribution costs only.
7. The sum of the individual media may differ from the total due to rounding.