U.S. Ad Market Grows 4.5 Percent in First Half of 2005
NEW YORK--(BUSINESS WIRE)--Sept. 6, 2005--Total advertising expenditures for the first half of 2005 increased 4.5 percent, compared to the same period in 2004, to $70.5 billion, according to data released today by TNS Media Intelligence (TNS MI), the leading provider of strategic advertising and marketing information. The 4.5 percent first half growth follows a first quarter increase of 4.4 percent, indicating that the advertising market is maintaining spending.
"The first half ad expenditure numbers demonstrate sustained momentum from the first quarter of the year," said Steven Fredericks, President and CEO of TNS Media Intelligence. "The 4.5 percent growth rate for the period is slightly higher than our forecast of 4.1 percent issued earlier this year. The advertising market continues to outperform the general economy but the third quarter will be a much more difficult comparison period because of last year's stimulus from the Summer Olympics and national elections."
Ad Spending by Media
Cable TV continued to be a strong sector, rising 15.3 percent to $7.9 billion, due to higher unit rates, increases in commercial time and larger audiences. Internet display advertising advanced 9.4 percent to $3.9 billion, again outpacing the total market. Other strong categories were Outdoor, with a 9.3 percent increase to $1.6 billion; and Consumer Magazines, with a 9.1 percent increase to $10.5 billion. By total dollar amount, Local Newspapers and Network TV led all media at $12.2 billion and $11.6 billion, respectively, during the first half.
National media (7.4 percent growth to $44.9 billion) outpaced local media (0.1 percent decline to $25.7 billion) during the period. Spot TV expenditures fell 6.1 percent due to declines in political advertising, non-domestic automotive and telecommunications.
Advertising Spending by Media: First Half 2005 vs. First Half
Jan-June 2005 Jan-June 2004 % CHANGE