First Half of 2003 Shows Continued Strong Growth for the Ad Market

Return To Previous Page |

Contact:
Matt Biscuiti
Golin/Harris International
(212) 373-6044
mbiscuiti@golinharris.com

News

August 29, 2003

First Half of 2003 Shows Continued Strong Growth for the Ad Market
Ad Spending Up 6.8 Percent for First Half 2003

NEW YORK, August 29, 2003 - The U.S advertising market continues to exhibit strong growth this year at $61.6 billion in ad expenditures for the first half of 2003, an increase of 6.8 percent as compared to the first half of 2002.

Overall, the broadcast sector increased 4.7 percent to $31.3 billion and print posted a strong gain as well - up 8.6 percent to $25.8 billion. TNS Media Intelligence/CMR findings reveal that 15 out of 16 measured media experienced growth with six (Local Newspapers, Consumer Magazines, Cable TV, Internet, Syndication and Spanish Language TV) showing double-digit percentage gains compared to the first half of 2002.

"These first half results are further evidence that the ad recovery is well underway and that 2003 will be a very healthy year for the advertising marketplace," said Steven Fredericks, president and CEO, TNS Media Intelligence/CMR.

Cable TV posted the highest growth for the half - up to $5.7 billion, an increase of 16.7 percent - further evidence of the continued strength of this medium. Other media showing strong percentage growth for the first half of 2003 compared to the same time period last year include Syndication, Spanish Language Network TV and the Internet.

AD SPENDING BY MEDIA: FIRST HALF 2003 vs. FIRST HALF 2002 ¹

Media	First Half 2002 (Millions)	First Half 2003(Millions)	% Change
Broadcast
NETWORK TV	$10,388.00	10,351.20	-0.40%
SPOT TV	$7,562.60	$7,574.20	0.20%
CABLE TV ⁵	$4,894.70	$5,710.50	16.70%
LOCAL RADIO ⁴	$3,113.10	$3,245.40	4.20%
SYNDICATION-NATIONAL	$1,414.30	$1,637.60	15.80%
NATIONAL SPOT RADIO	$1,119.90	$1,218.00	8.80%
SPANISH LANGUAGE NETWORK TV ²	$959.20	$1,107.40	15.40%
NETWORK RADIO	$467.60	$480.20	2.70%
TOTAL FOR BROADCAST	$29,919.40	$31,324.40	4.70%
Print
NEWSPAPERS (LOCAL)	$9,623.00	$10,715.40	11.40%
CONSUMER MAGAZINES	$7,770.20	$8,589.90	10.50%
B-TO-B MAGAZINES3	$4,263.50	$4,339.50	1.80%
NATIONAL NEWSPAPERS	$1,413.50	$1,428.00	1.00%
SUNDAY MAGAZINES	$615.50	$661.50	7.50%
LOCAL MAGAZINES	$148.60	$154.50	3.90%
TOTAL FOR PRINT	$23,834.20	$25,888.80	8.60%
INTERNET	$2,776.50	$3,201.30	15.30%
OUTDOOR	$1,191.30	$1,254.40	5.30%
GRAND TOTAL	$57,721.50	$61,668.90	6.80%

Source: TNS Media Intelligence/CMR
¹ 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

Automotive, packaged goods and entertainment advertisers led spending in the first half of 2003. General Motors was the top spender - up 10.5 percent - to $1.27 billion. Procter & Gamble followed very closely, posting $1.26 billion in spending - up 30.7 percent. AOL Time Warner ranked third, posting a percentage gain of 4.8 to $965.7 million.

Seven of the top ten advertisers showed double-digit percentage gains in spending.

Other strong advertisers include: DaimlerChrysler, up 26.9 percent to $757.7 million and Johnson & Johnson, up 21.2 percent to $611.2 million.

TOP TEN AD SPENDERS: FIRST HALF 2003 vs. FIRST HALF 2002

Company	First Half 2002(Millions)	First Half 2003(Millions)	% Change
General Motors Corp.	1,150.30	1,271.40	10.50%
Procter & Gamble Co.	967.00	1,264.40	30.70%
AOL Time Warner Inc.	921.20	965.70	4.80%
Daimler Chrysler AG	596.90	757.70	26.90%
Ford Motor Co.	627.40	705.40	12.40%
Walt Disney Co.	529.90	632.50	19.40%
Johnson & Johnson	504.20	611.20	21.20%
Verizon Communications	555.20	581.70	4.80%
Altria Group Inc.	559.10	558.40	-0.10%
Pepsico Inc.	445.80	513.80	15.30%
TOTAL	6,857.00	7,862.20	14.70%

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: First half information by category, along with second quarter data by media, company and category is available upon request.