Advertising spends in the US witness a rise of 10.3 % in 2004

MUMBAI: The US advertising expenditure for the first nine months of 2004 has shown an increase of 10.3 per cent to $102.4 billion compared to the same time period in 2003, according to data released today by TNS Media Intelligence/CMR, the provider of strategic advertising and marketing information.

"Throughout 2004, the advertising market has experienced steady, healthy growth with increases in all three quarters," said TNS Media Intelligence/CMR president and CEO Steven Fredericks ."As we forecasted earlier in the year, third quarter spending for the Olympics and the political season elevated the volume of overall dollars brought into the advertising market."


Almost all of the media measured by TNS Media Intelligence/CMR has shown growth throughout the first nine months of the year, with local newspapers leading in total dollar spending at $17.7 billion, up 6.6 per cent over the same time period in 2003.

In the automotive, home furnishings/appliances and clothing/department stores categories, the spending helped drive the growth in this medium. Network TV, the second highest medium for ad dollars spent, totaled $16.4 billion, up 14 per cent in part due to Olympic spending in the third quarter of 2004.

Intelligence/CMR witnessed a double digit year-over-year percentage growth, with the Internet continuing its steady rise, up 25.8 percent to $5.5 billion. Other media that displayed a strong year-over-year growth included outdoor, national syndication, cable TV, local magazines and consumer magazines.


The top 10 advertisers for the first nine months of 2004 spent $12.6 billion in advertising and a 6.8 per cent increase from the same time period in 2003.

The leader in spends was Procter & Gamble with a total of $2.1 billion, a 6.7 percent increase. While P&G utilised all major media for their communication, the company also spent a good portion of its budget with Network TV, cable and consumer magazines.

Other advertisers who exhibited strong spends include General Motors, whose advertising activity totaled $1.9 billion and Time Warner with a total of $1.3 billion.

Nearly all of the top 10 ad spenders witnessed some level of growth, with Verizon Communications and General Motors posting double digit year-over-year gains at 21.8 per cent and 14.6 per cent respectively. Verizon's promotion of its wireless and Internet services helped fuel its strong growth.


The total television advertising revenue for the 2004 Summer Olympics reached $1.55 billion, an increase of $255 million versus the 2000 Sydney games. "In an era characterised by audience fragmentation, advertisers recognize the value of advertising during high-profile, must-see events such as the Olympics," continued Fredericks. Network TV accounted for $1.17 billion of spending on the Games while $93 million was allocated to cable networks. Local TV stations took in an additional $285 million in ad revenue.

A collection of 160 different advertisers aired commercial messages during the 16 days of coverage on the NBC network broadcast. and the top five Network TV sponsors ranked on spending, were General Motors, Coca-Cola, Anheuser-Busch, Visa and AT&T Wireless.

Coming to political spending, TNSMI/Campaign Media Analysis Group found $ 767 million was spent on political and issue advocacy television messages for the first nine months of 2004. "This has been an unprecedented election from an advertising standpoint," stated TNSMI/Campaign Media Analysis CEO Group Evan Tracey . "The new campaign finance laws, which some said would hinder the advertising industry, have actually increased the total spent and allowed for a significant increase in early political ad spending."

From January to September 2004, the Bush/Cheney campaign and pro-Republican groups spent $156.4 million for their messages. The Kerry/Edwards campaign and pro-Democrat groups spent $253.8 million. Spending on other elections and ballot initiatives, along with spending by issue advocacy groups totaled $356.8 million.

The total spending in 2004 for political messages was projected to exceed $1.45 billion.

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