3.8% Increase in U.S. Advertising Spending

Advertising spending through the third quarter of 2002 rose 3.8% over the same period last year, fuelled by gains across most major media, according to preliminary figures recently released by Nielsen Monitor-Plus, a service of Nielsen Media Research.

Advertising spending increased in eight of the 11 reported media, with growth rates ranging from 2% to almost 10%. Local Newspapers experienced the greatest gain, at 9.5%, while Network TV grew 8% and Network Radio rose slightly more than 7%.

Advertising spending for three of the reported media declined. Syndicated Television fell almost 9%, compared with the same period last year, while National Newspaper spending declined more than 9%. Although Internet spending also fell, the year-to-year loss, at 1%, was very modest, largely because of a strong third-quarter increase.

'With three quarters under our belt, the U.S. advertising economy is showing signs of life and this bodes well for a stronger 2002,' said Jeff King, managing director of Nielsen Monitor-Plus. 'We continue to see improvement in advertising spending year-to-date and the third quarter follows that upward trend. Through August, Automotive advertising experienced the largest dollar increase, with the Motion Picture and Wireless Communications categories following. These three categories contributed to an overall increase of $1.69 billion compared to same period last year.'

Year-to-date advertising spending for the top ten parent companies (all of whom were also 2001 top spenders) reached $9 billion through August 2002, up 7.4% from last year. Seven experienced growth, with Procter & Gamble (+25%) and Pfizer (+21%) showing the greatest increases in ad expenditures. P&G's increase can be partly attributed to advertising for new products and line extensions such as Cover Girl Aquasmooth Make-up, and Swiffer Wet Jet Mops, while Pfizer increased budgets on prescription drugs Lipitor and Viagra.

Ad spending decreased for two of the three automotive companies in the top ten -- DaimlerChrysler (-10%) and Ford (-2%) -- while the country's largest advertiser, General Motors, increased spending almost 8%, primarily for their Cadillac, Chevrolet, and Saturn brands.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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