TNS Media Intelligence
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December 9, 2003
 
U.S. Ad Market Continues its Climb: Up Seven Percent Through Third Quarter
TNS Media Intelligence/CMR Reports Steady Rise to $89.6 Billion in Ad Spending
 
NEW YORK, December 9, 2003 - The U.S. advertising market continued a strong, steady climb to $89.6 billion for the first three quarters of 2003, an increase of seven percent as compared to the first three quarters of 2002, according to TNS Media Intelligence/CMR, the leading provider of strategic advertising and marketing communications information.

Overall, the broadcast sector increased 4.5 percent to $46.9 billion in the first nine months of 2003, while the print sector increased 9.1 percent to $37.9 billion. Fourteen out of 17 measured media showed growth, with five of those (Cable TV, Syndication, Spanish Language TV, Local Newspapers and the Internet) exhibiting double-digit percent change gains.

"The consistent increase in spending this year speaks to the overall health of the ad market," said Steven Fredericks, president and CEO, TNS Media Intelligence/CMR. "As the leading monitor of advertising/marketing information, we are able to see across the wide media landscape. The quarter-by-quarter market growth we've viewed is telling of a positive year for advertising overall."

Spanish Language TV posted the highest growth for the first three quarters - up 18.3 percent to $1.6 billion, which is indicative of the continued strength of this medium and its importance to the ad marketplace. Other media showing strong year over year growth in the first nine months of 2003 (compared to the same time period in 2002) include Cable TV and Syndication.

Free Standing Insert (FSI) data, supplied by Marx Promotion Intelligence, a TNSMI/CMR company, showed a 6.5 percent increase in the first three quarters of 2003 to $1 billion in distribution (media space). "As the advertising marketplace continues to expand avenues of message delivery, it's crucial to have accurate intelligence on all forms of media," said Mr. Fredericks. "For many marketers of consumer products FSI's are an important part of a brand's spending mix."

AD SPENDING BY MEDIA: FIRST THREE QUARTERS 2003 vs. 2002 1

MEDIA SEP YTD 2002 (Millions) SEP YTD 2003 (Millions) % CHANGE
BROADCAST      
NETWORK TV $14,374.00 $14,438.20 0.40%
SPOT TV $12,100.40 $11,824.50 -2.30%
CABLE TV 2 $7,563.10 $8,848.20 17.00%
LOCAL RADIO 3 $4,946.30 $5,101.00 3.10%
SYNDICATION-NATIONAL $2,122.10 $2,471.00 16.40%
NATIONAL SPOT RADIO 4 $1,753.80 $1,924.50 9.70%
SPANISH LANGUAGE NETWORK TV 5 $1,391.10 $1,645.30 18.30%
NETWORK RADIO $711.30 $735.00 3.30%
TOTAL FOR BROADCAST $44,962.10 $46,987.70 4.50%
PRINT      
NEWSPAPERS (LOCAL) $14,429.30 $16,313.10 13.10%
CONSUMER MAGAZINES $11,803.40 $12,873.50 9.10%
B-TO-B MAGAZINES 6 $6,379.50 $6,415.10 0.60%
NATIONAL NEWSPAPERS $2,018.00 $2,088.10 3.50%
FSI's 7 $949.40 $1,011.00 6.50%
SUNDAY MAGAZINES $896.90 $943.50 5.20%
LOCAL MAGAZINES $223.00 $234.30 5.00%
TOTAL FOR PRINT $34,756.40 $37,934.40 9.10%
INTERNET $4,164.90 $4,737.90 13.80%
OUTDOOR 4 $1,849.00 $1,931.40 4.50%
GRAND TOTAL $83,789.20 $89,647.40 7.00%
Source: TNS Media Intelligence/CMR

Top Ten Advertisers Expenditures
The top ten advertisers spent $11.6 billion year-to-date for 2003, an increase of 12.6 percent over the same time period in 2002. Packaged goods, automotive, and entertainment advertisers led spending. Procter & Gamble was the top spender - up 30.4 percent to $1.97 billion. GM came in second, posting $1.77 billion in spending - up 10.1 percent. Other strong advertisers include: DaimlerChrysler AG, up 26.2 percent to $1.1 billion, and Johnson & Johnson, up 18.7 percent to $929.1 million.

TOP TEN AD SPENDERS: FIRST THREE QUARTERS 2003 vs. 20021

COMPANY SEP YTD 2002 (Millions) SEP YTD 2003 (Millions) % CHANGE
PROCTER & GAMBLE CO $1,512.70 $1,972.90 30.40%
GENERAL MOTORS CORP $1,609.10 $1,771.10 10.10%
TIME WARNER INC $1,296.50 $1,276.50 -1.50%
DAIMLERCHRYSLER AG $873.90 $1,102.60 26.20%
FORD MOTOR CO $1,037.80 $1,059.10 2.10%
WALT DISNEY CO $897.80 $1,043.10 16.20%
JOHNSON & JOHNSON $783.00 $929.10 18.70%
VERIZON COMMUNICATIONS $797.50 $894.30 12.10%
ALTRIA GROUP INC $750.00 $800.50 6.70%
PEPSICO INC $778.40 $790.10 1.50%
TOTAL $10,336.60 $11,639.20 12.60%
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 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, 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.

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 Cable TV figures based on 37 networks
3 Local Radio includes expenditures for 34 markets in the U.S provided by Miller Kaplan.
4 Outdoor and National Spot Radio data are estimated.
5 Spanish Language Network TV includes expenditures from Univision, Telemundo and Telefutura.
6 B2B figures based on Business Information Network (BIN) data as reported by TNSMI/CMR to the American Business Media (ABM).
7 FSI data represents distribution costs only.

EDITOR'S NOTE: Year-to-date (January-September) information by category, along with third quarter data by media, company and category are available upon request.