1Q Ad Spending: Cable Up, Overall Total Down
TNS Media Intelligence Pegs Cable Gain at 6.3%, Overall Drop at 0.3%
By Linda Haugsted -- Multichannel News, 6/5/2007 7:36:00 AM
Total advertising expenditures for the first quarter of this year were down 0.3%, to $34.93 billion, compared with the same quarter of last year, according to data released Tuesday by TNS Media Intelligence, although some ad categories, such as cable and Internet-display advertising, experienced growth.
According to the data, cable-network expenditures were up 6.3% to $3.82 billion for the first quarter. That growth was lead by niche interest channels.
Internet-display advertising was the greatest gainer, posting a 16.7% increase over last year, earning $2.7 billion. This reflects the fact that advertisers continue to expand their use of the Internet.
By comparison, network-broadcast advertising dropped 7.2% to $6.05 billion. TNS senior vice president and director of research Jon Swallen noted that network advertising was buoyed in the same quarter last year by the Winter Olympic Games. Even without that event this year, TNS had forecast a slight increase in overall ad-sales growth for the period -- growth that has not materialized, he said. TNS will revise its full-year forecast based on these disappointing first quarter sales, he added.
The losses are attributable in part to an 8% decline in advertising spending by the top 10 advertisers, Swallen said. For example, General Motors’ advertising was down 30.9% from the same quarter last year, AT&T was down 19.2% and Procter & Gamble was down 8.6%, according to TNS figures. Drops from those three companies alone took $404.2 million out of the ad-spending pool.
The decline in growth in advertising is attributable to corporate concerns about the decline in consumer spending, Swallen said.
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