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Robust Growth Continues for Web and All U.S.
Advertising Market
Ad spending rose 9.1-percent for first half 2004. Internet showed most vigorous year-over-year growth
from TNS Media Intelligence/CMR
 

NEW YORK, August 23, 2004 - Total advertising expenditures for the first half of 2004 increased 9.1 percent to $67.6 billion compared to the same time period in 2003, according to data released today by TNS Media Intelligence/CMR, the leading provider of strategic advertising and marketing information.

"The first half results are a continuation of the strong growth we've seen occurring in the industry since the latter half of 2002," said Steven Fredericks, president and CEO of TNS Media Intelligence/CMR. "Overall ad spending is on track to realize a 9-10 percent increase for the year, especially as the Olympics and the Presidential election help drive third quarter results."

Ad Spending by Media
Almost all of the media measured by TNSMI/CMR experienced growth throughout the first half of 2004, with the Internet, Cable TV, National Syndication, National Newspapers, and Local Magazines showing double digit year-over-year gains. In the first and second quarters of 2004, spending increased 9.8 percent and 8.4 percent respectively.

In response to increased advertiser interest, the Internet exhibited the most vigorous year-over-year growth, up 25.9 percent to $3.6 billion in ad spending. Cable TV totaled the second highest year-over-year growth with an 18.2 percent increase to $6.8 billion. The first-half gains for Internet advertising follow its strong performance for the full year 2003 when the sector racked up $6.5 billion in revenue (up 15.7-percent) from 2002.

Other media showing strong year-over-year growth include National Syndication, up 17.5 percent to $1.9 billion, National Newspapers up 10.8 percent to $1.6 billion, and Local Magazines up 10.2 percent to $170 million.

Local Newspapers led in dollar spending for the first half of 2004, posting $11.9 billion, an increase of 7.5 percent versus first half 2003. Spending in the automotive (domestic and non-domestic), local home furnishings and appliances, and telecommunications services ad categories helped fueled this growth.

Ad Spending by Media: First Half 2004 vs. First Half 20031

MEDIA
Jan - June 2003
($Mil)
Jan - June 2004
($Mil)
% CHANGE
INTERNET
$2,936.6
$3,696.6
+25.9%
CABLE TV 4
$5,823.4
$6,881.5
+18.2%
SYNDICATION TV (National)
$1,637.6
$1,924.9
+17.5%
NATIONAL NEWSPAPERS
$1,527.5
$1,692.6
+10.8%
LOCAL MAGAZINES
$154.5
$170.2
+10.2%
NETWORK TV
$10,351.2
$11,214.1
+8.3%
SPOT TV 3
$7,242.1
$7,819.5
+8.0%
CONSUMER MAGAZINES 2
$9,058.7
$9,773.4
+7.9%
NEWSPAPERS (Local)
$11,112.0
$11,945.7
+7.5%
HISPANIC MEDIA 7
$1,724.2
$1,791.4
+3.9%
LOCAL RADIO 5
$3,451.7
$3,572.6
+3.5%
OUTDOOR 6
$1,353.5
$1,402.1
+3.6%
B-TO-B MAGAZINES
$2,543.7
$2,581.3
+1.5%
NATIONAL SPOT RADIO 6
$1,218.0
$1,214.3
-0.3%
Other
$1,864.3
$1,948.2
+4.5%
GRAND TOTAL 9
$61,999.2
$67,628.2
9.1%

Source: TNS Media Intelligence/CMR
1. Figures are based on the TNS Media Intelligence/CMR Stradegy2 multimedia ad expenditure database across all TNSMI/CMR measured media, including: Network TV, Spot TV, Cable TV, Syndication, Hispanic Network TV, Consumer Magazines, Sunday Magazines, Local Magazines (31 publications), Hispanic Magazines, Newspapers (local and national), Hispanic Newspapers, Network Radio, Spot Radio, Local Radio, Internet and Outdoor. Figures do not contain public service announcement (PSA) data.
2. Consumer Magazine data reflects the June 2004 PIB restatement
3. Spot TV figures do not include Hispanic Spot TV data
4. Cable TV figures based on 43 networks.
5. Local Radio includes expenditures for 35 markets in the U.S provided by Miller Kaplan.
6. National Spot Radio and Outdoor data are estimated.
7. Hispanic Media includes expenditures from Hispanic TV (Univision, Telemundo, Telefutura and Galavision), Hispanic Spot TV, Hispanic Magazines and Newspapers.
8. FSI data represents distribution costs only.
9. The sum of the individual media may differ from the grand total due to rounding.