U.S. Advertising Market Shows a Healthy Start to 2003

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Glenn Mandel
Golin/Harris International
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News

June 11, 2003

U.S. Advertising Market Shows a Healthy Start to 2003
Ad Spending Up 4.9% in First Quarter 2003

NEW YORK, June 11, 2003 - The U.S advertising market is healthy and growing, showing gains of 4.9 percent to $28.4 billion for the first quarter of 20031, compared to the same time period in 2002, according to TNS Media Intelligence/CMR, the leading provider of strategic advertising and marketing communications information.

"The first quarter results are a continuation of the growth we've seen in the industry since the second half of 2002," said Steven Fredericks, president and CEO of TNS Media Intelligence/CMR. "Despite cautious market expectations of the impact of the Iraq War, we are off to a very good start for 2003."

Overall, the Broadcast sector increased 2.8 percent to $14.7 billion. Print posted a strong gain of 6.7% to $11.6 billion. TNS Media Intelligence/CMR findings reveals that 14 out of 16 measured media experienced growth, with seven of those (Consumer Magazines, Local Magazines, Cable TV, Internet, Syndication, Spanish Language TV and National Spot Radio) showing double-digit gains compared to last year's first quarter.

Spanish Language Network Television posted the highest growth for the quarter - 19.5 percent - indicating that advertisers have recognized the strong consumer influence and power of this growing demographic and have been aggressively targeting it.

For the first time, TNS Media Intelligence/CMR has broken out Local Magazines as a separate medium, providing an even more detailed look at the print sector. Doing so also increases the number of media measured by TNSMI/CMR from 15 to 16.

Ad Spending By Media: First Quarter 2003 vs. 2002

Media	Jan - March 2002 (Millions)	Jan - March 2003 (Millions)	% Change
Broadcast
Network TV	$5,369.00	$5,050.00	-5.90%
Spot TV	$3,716.10	$3,736.80	0.60%
Cable TV ⁵	$2,123.90	$2,506.30	18.00%
Local Radio4	$1,334.70	$1,397.70	4.70%
Syndication-National	$709.20	$812.10	14.50%
National Spot Radio	$474.20	$526.90	11.10%
Spanish Language Network TV ²	$426.50	$509.70	19.50%
Network Radio	$208.10	$227.00	9.10%
TOTAL FOR BROADCAST	$14,361.60	$14,766.60	2.80%
Print
Newspapers (Local)	$4,639.10	$4,843.40	4.40%
Consumer Magazines	$3,307.60	$3,705.80	12.00%
B-to-B Magazines ³	$1,898.90	$2,003.60	5.50%
National Newspapers	$680.50	$675.90	-0.70%
Sunday Magazines	$303.30	$328.90	8.40%
Local Magazines	$69.80	$77.10	10.40%
TOTAL FOR PRINT	$10,899.21	$11,634.70	6.70%
Internet	$1,355.00	$1,520.20	12.20%
Outdoor	$550.60	$562.40	2.20%
GRAND TOTAL	$27,166.30	$28,483.90	4.90%

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 (32 publications), Newspapers (local and national), Network Radio, Spot Radio, Local Radio, Internet and Outdoor. Figures do not contain public service announcement (PSA) data.
² Spanish Language Network TV includes expenditures from Univision, Telemundo and Telefutura.
³ B2B figures based on Business Information Network (BIN) data as reported by TNSMI/CMR to the American Business Media (ABM).
⁴ Local Radio includes expenditures for 32 markets in the U.S provided by Miller Kaplan.
⁵ Cable TV figures based on 37 networks

Ad expenditures for the country's top 10 advertisers increased by more than 11 percent or nearly $4 billion in the first quarter of this year compared to the same time period in 2002. Notably, more than half of the nations' top 10 advertisers have experienced double-digit gains in ad expenditures this quarter, as compared to first quarter last year.

Procter & Gamble Co. was the top spender increasing 22.7 percent to $608 million. Other leading spenders included Sony Corp, up 41.3 percent; Johnson and Johnson, up 34.8 percent; and Ford Motor Co., up 26.8 percent.

Top Ten Ad Spenders: First Quarter 2003 vs. 2002

Company	Jan - March 2002 (Millions)	Jan - March 2003 (Millions)	% Change
Procter & Gamble Co.	$495.70	$608.10	22.70%
General Motors Corp.	$618.30	$575.30	-7.00%
AOL Time Warner Inc.	$479.50	$460.40	-4.00%
Walt Disney Co.	$320.40	$396.40	23.70%
Daimler Chrysler AG	$296.60	$352.90	19.00%
Ford Motor Co.	$255.20	$323.60	26.80%
Johnson & Johnson	$222.40	$299.80	34.80%
Sony Corp	$185.30	$261.90	41.30%
Verizon Communications	$255.80	$260.80	2.00%
Altria Group Inc.	$259.40	$242.40	-6.50%
TOTAL	$3,388.60	$3,781.60	11.60%

Source: TNS Media Intelligence/CMR

About TNS Media Intelligence/CMR
TNS Media Intelligence/CMR is the leading provider of strategic advertising and marketing communications information - across media, brand, industry and market. The company's tracking technologies collect occurrence and expenditure data, as well as the creative executions of more than 1.7 million brands spanning 16 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, visit 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 www.tns-global.com.

EDITOR'S NOTE:1^st Quarter 2003 advertising spending by industry category available upon request.