US ad market grows 4% in first quarter

MUMBAI: Total advertising expenditures for the first quarter of 2005 in the US have increased by 4.4 per cent to $33.5 billion compared to the same time period in 2004.

Though this is the smallest gain in advertising spend since the end of 2003, spending continues to increase at a faster rate than the GDP of the American economy just as it has in 10 of the last 11 quarters.


This data is contained in a report which was released by TNS Media Intelligence a provider of strategic advertising and marketing information. Local Magazines led all media categories in percentage growth, rising 26.2 per cent to $104 million. Cable TV registered growth of 18.2 per cent to $3.5 billion, taking market share from broadcast TV.

Sunday Magazines grew by 14.5 per cent to $398 million which is a reflection of organic growth and expansion in TNS MI measurement base and Consumer Magazines increased by 9.5 per cent to $4.7 billion. Internet advertising also continued to rise, posting an 8.2 per cent increase over the previous year to $1.9 billion. By total dollar amount, Local newspapers and Network TV led all media at $5.9 billion and $5.8 billion, respectively.



TNS Media Intelligence president and CEO Steven Fredericks said, ?It is clear that advertisers were fiscally more cautious in the first quarter of 2005, given mixed economic indicators and wavering consumer confidence. Traditional stalwart categories such as automobile, banking and retail department stores performed below the market average. However those decreases were offset by increased spending by direct response and restaurants?.

Local and national newspapers, which account for 20 per cent of total ad spend, have recently been faced with circulation declines and advertiser consolidation in key categories. As a result, these media turned in below-average growth, pulling down the total average. Spending for B-to-B Magazines continued to show weakness, and Spot TV and Network Radio were the only two media categories to show declines compared with the same period in 2004.

Advertising spend in the top ten categories increased by 4.9 per cent to $14.3 billion in the first quarter compared to the same time period in 2004. Domestic auto led all categories at $2.1 billion, closely followed by Non-domestic Auto at $2.0 billion. Direct Response led all categories in growth, rising 19.3 per cent to $1.5 billion, followed by media and marketing with a 12.6 per cent growth to $1.1 billion, and restaurants with 11.9 per cent growth to $1.1 billion. Spending by the top ten categories for the first quarter registered $14.3 billion, accounting for 42.6 per cent of total ad spend.

Latest Reads
Foodpanda acquires Holachef

Food delivery company Foodpanda, India’s fastest growing today announced its acquisition of Mumbai-based food-tech venture Holachef. Through this collaboration, Foodpanda marks its strategic entry into cloud kitchens and plans to launch its own brand of food products in different categories.

MAM Marketing Brands
Amazon Echo says experience everyday magic in new campaign

In today’s world, where people are worried that the growth of technology is drawing them apart, Amazon Echo’s new campaign aims to bring Indian families together with its smart speaker technology. The campaign stitches together an Indian family’s everyday situations that lead to small moments of...

MAM Media and Advertising Ad Campaigns
Ajmal Perfumes partners with Parcos

Global home-grown perfume house, Ajmal Perfumes has entered into a strategic association with one of the leading perfume and cosmetics retailer, Parcos.

MAM Marketing Brands
KFC hands over digital mandate to iProspect

iProspect India, the digital agency from Dentsu Aegis Network, has bagged the SEO, paid media and digital business for KFC India, an American fast food restaurant chain. The account will be handled from the agency’s Delhi office.

MAM Media and Advertising Account
KOSH Oats launches Roti Donation Drive on World Food Day

KOSH Oats by Future Consumers announces ‘Roti Donation Drive’ a special initiative which starts on World Food Day.

MAM Marketing MAM
Truecaller shows it is more than just a caller ID & spam detection app

Truecaller has launched its new television and digitally focused advertising campaign with the tagline ‘Sab ke liye’ meaning both ‘for everyone’ and ‘for everything’. The ad campaign is aimed to create awareness among the audience about the recent features introduced on the app apart from Caller ID...

MAM Marketing MAM
Birla Gold & BBH team up for another power pact film

Birla Gold, the cement brand of the B.K. Birla Group of Industries launched its new ad campaign marking the beginning of the latest Pro Kabaddi League season and commemorating its association with Patna Pirates, three-time winning champions.

MAM Media and Advertising Ad Campaigns
fbb launches its festive collection at Mumbai Airport

The season for shopping has begun and people all over the country have increased their spending budgets to ensure they look their best this season.

MAM Marketing MAM
Kansai Nerolac reconstitutes its iconic 'Ghar Ki Raunak' jingle into a song

Kansai Nerolac Paints Ltd. (KNPL), one of the leading paint companies in India and pioneers of ‘Healthy Home Paints’ has recently teamed up with popular Indian music director, Pritam’s musical platform JAM8 to roll out a rendition to Nerolac’s iconic jingle as a song, across India.

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories