TNS: Internet Advertising up 17.9% in Q3; Total Ad Market up 4%

Total advertising expenditures in the first nine months of 2006 increased 4% to $108.4 billion as compared to the prior year period, according to data released by TNS Media Intelligence. Total ad spending during the third quarter of 2006 was up by 3.8% versus 2005.

Ad Spending By Media

  • Spanish Language Television, leveraging the World Cup event, experienced a 19.1% increase in ad spending to $3.22 billion. 
  • Internet display advertising posted a 17.9% gain to $7.15 billion for the nine month period. 
  • Spot TV, propelled by third quarter political advertising, advanced 6.3% to $11.95 billion.
  • Network TV finished the period up 3.8% to $16.65 billion in expenditures. 
  • Cable Network ad spending of $12.14 billion was a 3.3 percent improvement over same period in 2005.
  • Local Newspapers saw expenditures for their print editions fall by 3.7 percent to $17.50 billion. 
  • Radio media also lagged, down a combined 1.1 percent to an aggregate of $8.09 billion.

Ad Spending by Advertiser
The top 10 advertisers in the first nine months of 2006 spent $13.55 billion, unchanged from the prior year period. 

The top 50 advertisers, who account for one-third of total ad spending, expenditures declined 1.0%. 

  • Procter & Gamble maintained its spot atop the rankings with $2.46 billion in spending, up 7.0 percent versus last year. 
  • AT&T up 29.3 percent to $1.65 billion 
  • Verizon Communications up 13.9 percent to $1.45 billion.

Ad Spending by Category
Telecommunications category kept the top position with $6.85 billion in expenditures, up 13.8 percent. 

Local Services & Amusements became the second largest category, growing 11.0 percent to $6.43 billion. 

Direct Response (+7.3%), Financial Services (+5.3%) and Restaurants (+4.0%) each posted modest gains.

Branded Entertainment
In the third quarter of 2006, an average hour of monitored prime time network programming contained 2 minutes, 10 seconds (2:10) of in-show Brand Appearances and 18:19 of commercial messages. The combined total of 20:29 of marketing content represents 34% of a prime time hour.

Unscripted reality programming had an average of 6:33 per hour of Brand Appearances as compared to just 0:47 per hour for scripted entertainment programming, such as sitcoms and dramas. 

Late night network talk shows continue to have even higher levels, averaging 7:48 minutes per hour. The combined load of Brand Appearances and paid commercial messages in these shows exceeded 29 minutes per hour in the third quarter.

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