Field Reports1 Jul, 2006 By: Thomas Haire, Nicole Urso Reed Response
REPORT: U.S. Ad Spending Up 5.2 Percent in 1Q 2006; TV Spend Rises Nearly 8 Percent
NEW YORK — TNS Media Intelligence, a leading provider of strategic intelligence and research in the media and advertising industries, reports that total U.S. advertising expenditures for the first three months of 2006 rose a "moderate" 5.2 percent (to just less than $35 billion) from the same timeframe in 2005. Television spending (network, spot and cable TV) gained 7.9 percent over 1Q 2005 results, topping $14 billion.
"The moderate increase in 1Q advertising expenditures fell a bit short of our previously released growth forecast of 5.5 percent," said Steven Fredericks, president and CEO of TNS Media Intelligence, in a prepared statement. "Overall, the recent trend line in share-of-spending by major media segment has continued into 2006, while spending within key category segments displayed more volatility than normal."
While network TV spending gained 12.3 percent (to $6.5 billion), mainly due to the Winter Olympics in February, Internet display advertising was the leading percentage gainer, notching a 19.4-percent rise to $2.3 billion. Spanish-language media was the second-leading percentage winner, adding 14.2 percent and topping $1 billion in quarterly spending. Spot TV benefited from a combination of Olympic and early political campaign spending to leap 6.4 percent (to $3.9 billion).
By product category, the telecom world became the industry leader — boosted by AT&T and Sprint Nextel spending — rose more than 20 percent to $2.3 billion. The financial services market, local services and amusements and foreign and domestic auto advertisers rounded out the top five, with none of those categories falling below $1.9 billion in spending. However, foreign automakers spent 2.6 percent less than a year ago, while domestic car companies pulled back 11 percent.
TNS Media Intelligence supplies Response with its quarterly DR short-form and DR radio media billings statistics.
Who Is Scrooge in HSN-QVC Fight Over 'Christmas in July' Slogan?
WEST CHESTER, Pa. and ST. PETERSBURG, Fla. — If you Google the phrase "Christmas in July," more than 484,000 results would appear, including notes about a 1940 feature film with the name. The phrase is oft used and unlikely to bring up many negative thoughts.
Unless, of course, you work for leading TV retailers QVC and HSN. The home shopping giants are currently embroiled in a nasty legal fight in a Philadelphia U.S. District Court over which company holds the rights to use the phrase as a name for promotional purposes.
According to an Associated Press (AP) report, No. 1 TV shopping network QVC argues that it started its "Christmas in July" program in 1987. However, No. 2 HSN took the name to the U.S. Patent office first — in 2000 — and contends it owns the trademark for promotional purposes. QVC lawyer Manny Pokotilow tells AP the company believes it had a "common-law trademark" for using and promoting the name, even if it never registered it.
"We assume that there may have been actual confusion, that someone assumed they were dealing with QVC. The question is whether or not there have been damages. We don't know," adds Pokotilow.
HSN began the firefight in 2005 when it sent QVC a cease-and-desist letter regarding use of "Christmas in July." According to the report, though, HSN now argues neither side can truly lay claim to the phrase. HSN lawyer Edward Colbert tells AP, "A search on Google will turn up many references to 'Christmas in July.' We don't know the basis on which QVC is claiming complete and exclusive rights."