“The moderate increase in Q1 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. “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.”

Ad Spending by Media
Internet display advertising led all media forms in percentage growth, rising 19.4 percent to $2.31 billion as leading blue chip advertisers continued to expand their online marketing programs. For the quarter, the Top 100 companies, as ranked by total measured ad expenditures, accounted for 34.7 percent of all internet display spending.

The Winter Olympics helped boost Network TV spending to $6.52 billion for the quarter, a gain of 12.3 percent. Spanish Language Media also paced strongly, up 14.2 percent to $1.05 billion. Spot TV benefited from the biennial cycle of Olympics and early political spending to grow 6.4 percent to $3.90 billion. Consumer Magazines monetized gains in both page counts and rate card pricing to finish with a 5.9 percent increase at $4.83 billion.

Local Newspapers, beset by lower spending from three important categories (retail, automotive and telecommunications), had spending of $5.55 billion, a decline of 6.1 percent. Radio media also lagged, down a combined 1.2 percent to an aggregate of $2.34 billion.

Ad Spending by Media: Q1 2006 vs. Q1 2005¹

Ad Spending by Advertiser
The top 10 advertisers in Q1 spent $4.76 billion, a gain of 6.9 percent compared to the prior year period. Individual results portray an uneven picture. Four of these ten companies registered double digit gains while three others turned in double digit declines.

Procter & Gamble retained the top spot with $794 million in spending, up 13.8 percent against Q1 2005. General Motors holds the second position with $706 million in spending, down 1.9 percent in the midst of declining auto sales. AT&T, on the strength of a major re-branding campaign, had the largest growth rate among the top 10, up 51.0 percent. General Electric, led by its NBC Universal entertainment brands, was close behind at 43.9 percent growth.

The largest decrease in the group came from Time Warner, down 14.0 percent to $450 million. News Corp. reduced its advertising outlays by 11.6 percent to $303 million and Walt Disney spending fell 11.1 percent to $384 million. At all three companies the declines were driven by motion picture advertising.

Top Ten Advertisers: Q1 2006 vs. Q1 2005¹

Ad Spending by Category
The Telecom category rose to the top spot with $2.32 billion in expenditures, an increase of 20.4 percent. In addition to AT&T spending, a post-merger marketing push from Sprint Nextel contributed to the gain.

Financial Services was the second largest category, growing 10.9 percent to $2.15 billion behind credit cards and investment brokers. Other categories posting strong results were Local Services & Amusements, up 15.7 percent to $2.07 billion, and Restaurants, up 7.7 percent to $1.30 billion.

Automotive ceded its customary leadership position as ad spending declined for the third consecutive quarter. Reductions were widespread among both factories and local dealers, pushing Foreign Auto advertising down 2.6 percent to $1.98 billion and Domestic Auto down 11.0 percent to $1.91 billion.

Top Ten Advertising Categories: Q1 2006 vs. Q1 2005¹

Branded Entertainment
TNS Media Intelligence continuously monitors Branded Entertainment within network prime time and late night programming. The tracking identifies Brand Appearances and measures their duration and attributes. Given the short length of many Brand Appearances, duration is a more relevant metric than a count of occurrences for quantifying and comparing the gross amount of brand activity that viewers are potentially exposed to in the program versus in the commercial breaks.

In the first quarter of 2006, an average hour of prime time network programming contained 3 minutes, 22 seconds (3:22) of in-show Brand Appearances and 17:38 of commercial messages. The combined total of 21:00 of marketing content represents 35 percent of a prime time hour.

Unscripted reality programming had an average of 7:39 per hour of Brand Appearances as compared to just 2:08 per hour for scripted entertainment programming, such as sitcoms and dramas. Late night network talk shows continue to have even higher levels, averaging 8:41 minutes per hour. The combined load of Brand Appearances and paid commercial messages in these shows exceeds 31 minutes per hour.

Brand Appearances vs. Advertising: Average Levels Q1 2006

Top Programs: Brand Appearance Time Q1 2006

About TNS Media Intelligence
TNS Media Intelligence is the leading provider of strategic advertising intelligence to advertising agencies, advertisers, and media properties. The company's tracking technologies collect advertising expenditure and occurrence data, as well as select creative executions, for more than 2.2 million brands across 20 media. Established in 23 countries with more than 16,000 customers, TNS MI is part of the TNS Group, ranked #2 worldwide in marketing information and the world’s largest custom research company. The U.S. headquarters are in New York City with sales locations in major markets throughout the United States.

www.tns-mi.com

About TNS
TNS is a market information group. We are the world’s largest custom research company and a leading provider of social and political polling. We are also a major supplier of consumer panel, TV audience measurement and media intelligence services.

TNS operates a global network spanning 70 countries and employs over 13,000 people. We provide market information and measurement, together with insights and analysis, to local and multinational organizations.

We combine our specialist sector knowledge with expertise in the areas of new product development, motivational research, brand and advertising research and stakeholder management to bring our clients up-to-the minute, internationally consistent information.

We think differently to help our clients build competitive advantage, making TNS the sixth sense of business.

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