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Home arrow Market Research Findings arrow Advertising and Marketing arrow U.S Advertising Market Shows Strong Growth in 2004
U.S Advertising Market Shows Strong Growth in 2004 PDF Print E-mail
Written by TNS   
07 Mar 2005
TNS Media Intelligence Reports a 9.8 percent Increase for Full-Year Ad Spending

NEW YORK, March 8, 2005 – Total advertising expenditures for all media in 2004 increased 9.8 percent to $141.1 billion compared to 2003, according to data released today by TNS Media Intelligence, the leading provider of strategic advertising and marketing information.

“Advertising spending expanded steadily throughout 2004 and has now grown at a faster rate than the general economy in nine of the last 10 quarters,” says Steven J. Fredericks, president and chief executive officer, TNS Media Intelligence. “Gains were seen in almost all forms of media. These increases were not exclusively attributed to the Summer Olympic and the Presidential election, nor confined to TV media, the form that most benefited from these two events.”

Almost all of the media measured by TNSMI experienced growth throughout the year, with the Internet, Outdoor, Cable TV and National Syndication showing the strongest gains. Local Newspapers led in dollar spending for 2004, posting $24.5 billion, an increase of 6.7 percent versus 2003. The Internet showed the most robust year-over-year gain for 2004 posting a 21.4 percent increase to $7.4 billion in ad spending versus 2003. Outdoor advertising increased 20.1 percent to $3.2 billion in spending. This strong growth reflects both organic growth and an expansion in TNS Media Intelligence’s measurement base.

Ad Spending by Media: Full Year 2004 vs. 20031

?
Full Year 2004
Full Year 2003
MEDIA
(Millions)
(Millions)
% CHANGE
NEWSPAPERS (LOCAL)
$24,555.5
$23,018.5
6.7%
NETWORK TV
$22,522.4
$20,340.6
10.7%
CONSUMER MAGAZINES
$21,292.2
$19,145.9
11.2%
SPOT TV 2
$17,305.4
$15,499.2
11.7%
CABLE TV 3
$14,248.8
$12,521.6
13.8%
INTERNET
$7,441.5
$6,131.9
21.4%
LOCAL RADIO
$7,330.5
$7,250.4
1.1%
B-TO-B MAGAZINES 4
$5,214.1
$5,125.6
1.7%
SYNDICATION - NATIONAL
$3,930.9
$3,395.8
15.8%
HISPANIC MEDIA 5
$3,888.6
$3,713.8
4.7%
NATIONAL NEWSPAPERS
$3,255.2
$3,053.1
6.6%
OUTDOOR
$3,213.0
$2,674.4
20.1%
NATIONAL SPOT RADIO
$2,616.5
$2,635.2
-0.7%
SUNDAY MAGAZINES
$1,497.4
$1,383.8
8.2%
FSI's 6
$1,391.6
$1,317.2
5.6%
NETWORK RADIO
$1,027.8
$1,000.7
2.7%
LOCAL MAGAZINES
$360.2
$325.4
10.7%
TOTAL7
$141,091.7
$128,533.0
9.8%

Source: TNS Media Intelligence
1. Figures are based on the TNS Media Intelligence Stradegy2 multimedia ad expenditure database across all TNSMI
measured media, including: Network TV, Spot TV, Cable TV, Syndication, Hispanic Network TV, Consumer Magazines,
Sunday Magazines, Local Magazines (31 publications), Hispanic Magazines, Newspapers (local and national), Hispanic Newspapers, Network Radio, Spot Radio, Local Radio, Internet and Outdoor. Figures do not contain public service announcement (PSA) data.
2. Spot TV figures do not include Hispanic Spot TV data.
3. Cable TV figures based on 44 networks.
4. Local Radio includes expenditures for 35 markets in the U.S provided by Miller Kaplan.
5. Hispanic Media includes expenditures from Hispanic TV (Univision, Telemundo, Telefutura and Galavision), Hispanic
Spot TV, Hispanic Magazines and Hispanic Newspapers.
6. FSI data represents distribution costs only.
7. The sum of the individual media may differ from the total due to rounding.

Top Ten Ad Spenders: Full Year 2004 vs. 2003

?
Full Year 2004
Full Year 2003

COMPANY
(Millions)
(Millions)
% CHANGE
PROCTER & GAMBLE CO
$2,915.1
$2,713.3
7.4%
GENERAL MOTORS CORP
$2,802.6
$2,385.7
17.5%
TIME WARNER INC
$2,062.3
$1,953.5
5.6%
SBC COMMUNICATIONS INC
$1,967.7
$1,945.8
1.1%
DAIMLERCHRYSLER AG
$1,825.3
$1,652.4
10.5%
FORD MOTOR CO
$1,643.5
$1,455.3
12.9%
VERIZON COMMUNICATIONS INC
$1,624.9
$1,278.3
27.1%
WALT DISNEY CO
$1,484.1
$1,511.3
-1.8%
JOHNSON & JOHNSON
$1,289.3
$1,187.6
8.6%
NEWS CORP LTD
$1,129.2
$1,007.7
12.1%
TOTAL 9
$18,744.2
$17,090.9
9.7%

Source: TNS Media Intelligence

8 Figures do not contain PSA data, FSI data, or house ads.
9 The sum of the individual companies may differ from the total due to rounding

About TNS Media Intelligence
TNS Media Intelligence in the U.S. is the leading provider of strategic advertising and marketing information – across media, brand, industry and market. The company’s tracking technologies collect occurrence and expenditure data on more than 2.1 million brands spanning 20 media. The U.S. headquarters are located in New York City with sales locations in major markets across the country.

For further information, including this and prior press releases, please visit http://www.tns-mi.com.




 
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