TNS Media Intelligence
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March 8, 2005
 
U.S. ADVERTISING MARKET SHOWS STRONG GROWTH IN 2004
TNS Media Intelligence Reports a 9.8 percent Increase for Full-Year Ad Spending
 
NEW YORK, March 8, 2005 – Total advertising expenditures for all media in 2004 increased 9.8 percent to $141.1 billion compared to 2003, according to data released today by TNS Media Intelligence, the leading provider of strategic advertising and marketing information.

“Advertising spending expanded steadily throughout 2004 and has now grown at a faster rate than the general economy in nine of the last 10 quarters,” says Steven J. Fredericks, president and chief executive officer, TNS Media Intelligence. “Gains were seen in almost all forms of media. These increases were not exclusively attributed to the Summer Olympic and the Presidential election, nor confined to TV media, the form that most benefited from these two events.”

Almost all of the media measured by TNSMI experienced growth throughout the year, with the Internet, Outdoor, Cable TV and National Syndication showing the strongest gains. Local Newspapers led in dollar spending for 2004, posting $24.5 billion, an increase of 6.7 percent versus 2003. The Internet showed the most robust year-over-year gain for 2004 posting a 21.4 percent increase to $7.4 billion in ad spending versus 2003. Outdoor advertising increased 20.1 percent to $3.2 billion in spending. This strong growth reflects both organic growth and an expansion in TNS Media Intelligence’s measurement base.

Ad Spending by Media: Full Year 2004 vs. 20031

MEDIA Full Year 2004 (MM) Full Year 2003 (MM) % CHANGE
NEWSPAPERS (LOCAL) $24,555.50 $23,018.50 6.70%
NETWORK TV $22,522.40 $20,340.60 10.70%
CONSUMER MAGAZINES $21,292.20 $19,145.90 11.20%
SPOT TV2 $17,305.40 $15,499.20 11.70%
CABLE TV3 $14,248.80 $12,521.60 13.80%
INTERNET $7,441.50 $6,131.90 21.40%
LOCAL RADIO4 $7,330.50 $7,250.40 1.10%
B-TO-B MAGAZINES $5,214.10 $5,125.60 1.70%
SYNDICATION - NATIONAL $3,930.90 $3,395.80 15.80%
HISPANIC MEDIA5 $3,888.60 $3,713.80 4.70%
NATIONAL NEWSPAPERS $3,255.20 $3,053.10 6.60%
OUTDOOR $3,213.00 $2,674.40 20.10%
NATIONAL SPOT RADIO $2,616.50 $2,635.20 -0.70%
SUNDAY MAGAZINES $1,497.40 $1,383.80 8.20%
FSI's6 $1,391.60 $1,317.20 5.60%
NETWORK RADIO $1,027.80 $1,000.70 2.70%
LOCAL MAGAZINES $360.20 $325.40 10.70%
TOTAL7 $141,091.70 $128,533.00 9.80%
Source: TNS Media Intelligence
1Figures are based on the TNS Media Intelligence Stradegy2 multimedia ad expenditure database across all TNSMI measured media, including: Network TV, Spot TV, Cable TV, Syndication, Hispanic Network TV, Consumer Magazines, Sunday Magazines, Local Magazines (31 publications), Hispanic Magazines, Newspapers (local and national), Hispanic Newspapers, Network Radio, Spot Radio, Local Radio, Internet and Outdoor. Figures do not contain public service announcement (PSA) data.
2Spot TV figures do not include Hispanic Spot TV data.
3Cable TV figures based on 44 networks.
4Local Radio includes expenditures for 35 markets in the U.S provided by Miller Kaplan.
5Hispanic Media includes expenditures from Hispanic TV (Univision, Telemundo, Telefutura and Galavision), Hispanic Spot TV, Hispanic Magazines and Hispanic Newspapers.
6FSI data represents distribution costs only.
7The sum of the individual media may differ from the total due to rounding.

Ad Spending by Advertiser

Procter and Gamble was once again the leading advertiser in spending for 2004, posting a 7.4 percent increase to $2.9 billion. Other leading spenders include General Motors, whose advertising activity totaled $2.8 billion and Time Warner with a total of $2.1 billion. Verizon Communications and Ford Motor Company also saw major increases of 27.1 percent and 12.9 percent respectively. Overall, the top 10 advertisers represented 13.6 percent of total advertising expenditures in 2004.

Top Ten Ad Spenders: Full Year 2004 vs. 20038

COMPANY Full Year 2004 (MM) Full Year 2003 (MM) % CHANGE
PROCTER & GAMBLE CO $2,915.10 $2,713.30 7.40%
GENERAL MOTORS CORP $2,802.60 $2,385.70 17.50%
TIME WARNER INC $2,062.30 $1,953.50 5.60%
SBC COMMUNICATIONS INC $1,967.70 $1,945.80 1.10%
DAIMLERCHRYSLER AG $1,825.30 $1,652.40 10.50%
FORD MOTOR CO $1,643.50 $1,455.30 12.90%
VERIZON COMMUNICATIONS INC $1,624.90 $1,278.30 27.10%
WALT DISNEY CO $1,484.10 $1,511.30 -1.80%
JOHNSON & JOHNSON $1,289.30 $1,187.60 8.60%
NEWS CORP LTD $1,129.20 $1,007.70 12.10%
TOTAL9 $18,744.20 $17,090.90 9.70%
Source: TNS Media Intelligence
8Figures do not contain PSA data, FSI data, or house ads.
9The sum of the individual companies may differ from the total due to rounding

About TNS Media Intelligence
TNS Media Intelligence in the U.S. is the leading provider of strategic advertising and marketing information – across media, brand, industry and market. The company’s tracking technologies collect occurrence and expenditure data on more than 2.1 million brands spanning 20 media. The U.S. headquarters are located in New York City with sales locations in major markets across the country.

For further information, including this and prior press releases, please visit http://www.tns-mi.com.

About TNS
TNS is one of the world's leading providers of market information. The company delivers strategic market measurement, analysis, insight and advice to many of the world's largest organizations and most recognized brands. TNS' research helps its clients better understand the needs and wants of their customers, and its capabilities span market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling. From its global network that spans 70 countries who together conduct research in more than 110 countries, TNS allows for local expertise and knowledge to be combined together with internationally consistent information and analysis.

TNS is listed on the London Stock Exchange (TNN) and is a trade mark of Taylor Nelson Sofres plc. Further information can be found on http://www.tns-global.com.