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* Amounts rounded.
Figures are based on the TNS expenditure database which includes network TV, spot TV, 44 cable
TV networks, syndicated TV, Hispanic network TV, network radio, spot radio, local radio, internet
and outdoor, as well as various print media. Figures do not include public service announcement data.
More details are available at:
http://www.tns-mi.com/news/03132007.htm.
In 2006, advertising expenditures across all media – including broadcast, cable, internet and print among
others - totaled $149.6 billion according to TNS, an increase of 4.1% over 2005. Also notable was outdoor
media spending, which saw an 8.6% increase, with total 2006 spending at $3.8 billion.
“Total advertising expenditures continue to expand slowly. Excluding the cyclical contributions from
special events such as political elections and the Olympics, core growth is tracking in the range of
3%,” said TNS Media Intelligence President and CEO Steven Fredericks in a press release. “In the near-term,
we foresee no significant changes to underlying fundamentals that would move the overall ad market onto a
different track. Our most recent forecast of 2.6% growth for 2007, while conservative, still seems appropriate.”
Internet display ads continued to garner a large portion of ad spending. Online ad spending jumped 17.3% to
$9.76 billion in 2006. In 2005, Internet display advertising accounted for 5.8% of all ad spending, and that
share grew to 6.5% in 2006.
In a March 20 eMarketer report, eMarketer senior
analyst David Hallerman noted that other studies show an even larger boost in spending. Hallerman said in the
report: "It's been a long time since any medium had three years in a row of 30%-plus ad spending increases.
With a 34% gain in 2006, as the new research from IAB/PwC shows, the Internet now matches cable TV from 1983 to
1985 and broadcast TV from 1952 to 1954 for such strong, long-term spending increases."
EMarketer also conducts its own research on spending and found that online ad spending revenues totaled $16.8
billion in 2006, up from $12.5 billion in 2005.
The top ten advertisers spent a total of $18.7 billion in 2006, according to TNS. The biggest spender was Proctor
& Gamble Co., which spent about $3.3 billion in 2006, roughly 3% more than it spent in 2005.
The local services and amusements industry, the third-largest advertiser by category in the TNS report, increased
spending by 10.3% in 2006 with a total of $8.7 billion spent.
Telecom companies increased their ad spending in 2006 by 10.3%, to a total of about $9.4 billion.
Non-domestic auto companies held the second place spot with $8.7 billion spent, although that total is down 1.2%
from 2005 spending. Additionally, domestic automakers as a group spent 11.7% less in 2006 than they did in 2005.
The second-largest advertiser in TNS’s top ten list, General Motors Corp., actually cut ad spending by 23.7% in
2006, the agency said. Overall, automakers cut ad spending by 1.2% in 2006 compared to 2005.
According to a March
19 article on Bizreport.com, eMarketer predicted that the automotive category - makers, dealers and
after-market vendors - will spend more than $2.5 billion on online ads in 2007. As such, the automotive category
would make up 14% of all online advertising spending. Bizreport.com also reported that two of the "big
four" automakers - General Motors and Ford - increased their online spending by 60% and 20% respectively
from 2004 to 2005.
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