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Report: U.S. Ad Spending Up 5.2 Percent in 1Q 2006; TV Spend Rises Nearly 8 Percent"

31 May, 2006 Response This Week

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. Automotive advertising, however, did slump overall. 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.

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