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American Advertising Market Shows Strong Start for 2004
Total advertising expenditures in the USA 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 recently by TNS Media Intelligence/CMR.
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 fuelled this growth.
The top 10 advertisers for the 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.
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