U.S. Advertising Market Shows Strong Start for 2004

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Glenn Mandel
Golin/Harris International
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News

June 3, 2004

U.S. Advertising Market Shows Strong Start for 2004
TNS Media Intelligence/CMR Reports a 9.6% Increase for First Quarter Ad Spending.

NEW YORK, NY June 3, 2004 - Total advertising expenditures for the first quarter of 2004 increased 9.6% to $31.5 billion compared to the same time period in 2003, according to data released today by TNS Media Intelligence/CMR, the leading provider of strategic advertising and marketing information.

Almost all of the media measured by TNSMI/CMR experienced growth throughout the first quarter of 2004, with the Internet, National Syndication, Cable TV, National Newspapers, and Network TV showing double digit year-over-year gains.

"The economy is a bellwether for overall ad spending, and as the economy continues to grow, ad spending follows suit", said Steven Fredericks, president and CEO of TNS Media Intelligence/CMR. "The vigorous advertising growth rate for first quarter 2004 also benefited from favorable comparisons to first quarter 2003, during which concerns regarding the Iraq War dampened March spending levels."

The Internet exhibited the most robust year-over-year growth posting a 28.1% increase to $1.8 billion in ad spending. The healthy spend total for the Internet is a strong indicator that the medium has become an established part of the advertising media mix.

Other media showing strong year-over-year growth include National Syndication, up 16.7% to $947 million, Cable TV up 16.3% to 2.9 billion, and National Newspapers up 14.6% to $774 million.

Network TV led in dollar spending for first quarter 2004, posting $5.6 billion, an increase of 11.5% versus Q1/2003. Spending in the pharmaceutical, domestic auto, motion picture and telecommunications services advertising categories fueled this growth.

Ad Spending by Media: First Quarter 2004 vs. First Quarter 2003 ¹

Media	January - March 2003 (0,000)	January - March 2004 (0,000)	% Change
NETWORK TV	$5,050.00	$5,632.90	11.50%
NEWSPAPERS (LOCAL)	$5,222.30	$5,597.10	7.20%
CONSUMER MAGAZINES	$3,790.70	$4,064.20	7.20%
SPOT TV ²	$3,554.10	$3,871.50	8.90%
CABLE TV ³	$2,554.70	$2,970.00	16.30%
INTERNET ⁵	$1,470.10	$1,883.70	28.10%
LOCAL RADIO ⁴	$1,485.80	$1,547.80	4.20%
B-TO-B MAGAZINES ⁷	$1,215.30	$1,232.40	1.40%
SYNDICATION-NATIONAL	$812.10	$947.80	16.70%
SPANISH LANGUAGE MEDIA ⁶	$790.30	$791.30	0.10%
NATIONAL NEWSPAPERS	$675.70	$774.60	14.60%
OUTDOOR ⁵	$625.90	$658.20	5.20%
NATIONAL SPOT RADIO ⁵	$526.90	$515.10	-2.20%
FSI's ⁸	$368.10	$394.20	7.10%
SUNDAY MAGAZINES	$328.90	$330.80	0.60%
NETWORK RADIO	$227.00	$232.20	2.30%
LOCAL MAGAZINES	$77.10	$82.20	6.60%
TOTAL	$28,774.90	$31,526.00	9.60%

Source: TNS Media Intelligence/CMR
¹ Figures are based on the TNS Media Intelligence/CMR Stradegy2 multimedia ad expenditure database across all TNSMI/CMR measured media, including: Network TV, Spot TV, Cable TV, Syndication, Spanish Language Network TV, Consumer Magazines, Sunday Magazines, Local Magazines (31 publications), Spanish Language Magazines, Newspapers (local and national), Spanish Language Newspapers, Network Radio, Spot Radio, Local Radio, Internet and Outdoor. Figures do not contain public service announcement (PSA) data.
² Spot TV figures do not include Spanish Language Spot TV data
³ Cable TV figures based on 43 networks.
⁴ Local Radio includes expenditures for 34 markets in the U.S provided by Miller Kaplan.
⁵ National Spot Radio, Internet, and Outdoor data are estimated.
⁶ Spanish Language Media includes expenditures from Spanish Language TV (Univision, Telemundo, Telefutura and Galavision), Spanish Language Spot TV, Spanish Language Magazines and Newspapers.
⁷ B2B figures based on TNSMI/CMR reported data.
⁸ FSI data represents distribution costs only.

Ad Spending by Advertiser

The top 10 advertisers for first quarter 2004 spent $3.8 billion, an 11.5% increase from the same time period in 2003. One half of the top 10 leading spenders showed double digit year-over-year growth. While Procter and Gamble was the leading advertiser in spending with a total of $669 million, a 16.4% increase over Q1/2003, Nissan Motor Co. showed the most robust year-over-year growth of 29.8% to $252 million. PepsiCo also exhibited strong year-over-year growth with an increase of 20% to $253 million in spending. Other leading advertisers include General Motors, whose advertising activity totaled $661 million, Time Warner with a total of $395 million and Walt Disney with a total of $375 million.

Top Ten Ad Spenders: First Quarter 2004 vs. First Quarter 2003 ⁹

Company	January - March 2003 (0,000)	January - March 2004 (0,000)	% Change
PROCTER & GAMBLE CO	$575.00	$669.20	16.40%
GENERAL MOTORS CORP	$549.00	$661.40	20.50%
TIME WARNER INC	$368.30	$395.30	7.30%
WALT DISNEY CO	$375.80	$375.10	-0.20%
DAIMLERCHRYSLER AG	$342.80	$341.30	-0.40%
FORD MOTOR CO	$309.20	$320.00	3.50%
JOHNSON & JOHNSON	$285.10	$297.50	4.40%
VERIZON COMMUNICATIONS	$240.60	$283.10	17.70%
PEPSICO INC	$210.00	$253.30	20.60%
NISSAN MOTOR CO LTD	$194.50	$252.50	29.80%
TOTAL	$3,450.10	$3,848.60	11.50%

Source: TNS Media Intelligence/CMR
⁹ Total ad spending figures by company do not include expenditures for Local Radio, National Spot Radio, FSIs, Outdoor or the Internet

About TNS Media Intelligence/CMR
TNS Media Intelligence/CMR 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 1.9 million brands spanning 20 media. TNS Media Intelligence/CMR is headquartered in New York City and maintains sales locations in major markets throughout the United States.

Within the TNS organization, TNS Media Intelligence/CMR is a key member of the Media Intelligence sector - dedicated to providing worldwide tracking, analysis, evaluation and consultative services for the media and marketing communities. TNS Media Intelligence is the market leader in the U.S. and France, with significant operations in Europe and Asia. For further information, including this and prior press releases, please visit http://www.tnsmi-cmr.com.

About TNS
TNS is one of the world's leading market information groups, providing market measurement, analysis, insight and advice in more than 110 countries. Working with national and multi-national organizations, TNS helps its clients develop effective business strategies and enhance relationships with their customers. Further information on TNS can be found on http://www.tns-global.com.