Hispanic, Cable Lead in Ad Gains

9/02/2005 8:00 PM Eastern

Spanish-language TV and cable are leading the media pack in terms of the biggest gains in U.S. ad spending, which overall is up 5.7% for the first half of the year, according to preliminary figures released last week by Nielsen Monitor-Plus.

Spanish-language TV advertising was up 15% over the first six months this year versus the same period last year, while cable TV scored a 13.1% gain in such spending, according to Nielsen Monitor-Plus. They were followed by the Internet, which had a 12.6% increase.

Ad Spending: First Half 2005
Overall U.S. ad outlays, by segment:
Source: Nielsen Monitor-Plus
[A] Internet data provided by Nielsen/NetRatings
Spanish-language TV 15%
Cable TV 13.1%
Internet [A] 12.6%
Local magazine 8.7%
National magazine 7.9%
Outdoor 6.9%
Network TV 4.9%
Spot TV(DMAs 101 to 210) 3.5%
B-to-B magazines 2.7%
Local newspapers 1.8%
National newspapers 1.1%
Coupon 0.4%
Spot TV(DMAs 1 to 100) (-0.6%)
Network radio (-0.8%)
TOTAL 5.7%

Network TV ad spending was up 4.9%. Overall, ad spending for the first half hit $59.5 billion.

Several media categories, however, moved little in the first six months of this year — newspapers, coupons, spot TV for DMAs ranked 101 to 220 and network radio.

In fact, spot-TV ad spending in the top 100 markets was actually down, slipping 0.6%, as was network radio, which dipped 0.8%, according to Nielsen Monitor-Plus. Local newspapers saw a slim 1.8% gain in ad spending, while national newspapers were up 1.1%, Nielsen Monitor-Plus said.

“Ad spending continues to strengthen in 2005, with the second quarter outpacing the first,” Jeff King, managing director of Nielsen Monitor-Plus, said in a statement. “In particular, spending for the Top 100 spot television markets was down in the first quarter, but bounced back to a 3.1% gain in the second quarter.”

Spending for the 10 largest ad categories reached $21 billion in the first half of the year, 5.4% greater than the same period last year. Most product categories have increased spending, except for motion pictures and department stores, which dropped slightly. Movies were down 3%, to $1.74 billion, while department stores declined 3.1%, to $1.62 billion, according to Nielsen Monitor-Plus.

The fastest-growing category in terms of percent increase in spending is the credit-card industry, which is up 24.5% the first half of the year, to $848 million. Telephone services-wireless also saw a sizable gain, up 18.2% to $1.44 billion, according to Nielsen Monitor-Plus.

During the first half of the year, the most new commercials aired on cable, 4.4 million spots, generating $11 million. While network TV aired fewer new spots — 241,000 of them — it garnered more revenue for those commercials than cable, $11.8 million.

The biggest advertiser for the first six months this year was General Motors Corp., with spending up 14.2%, to $1.77 billion. Procter & Gamble Co. was second, but its spending was down 3.9%, to $1.39 billion, Nielsen Monitor-Plus said.