Total ad spending in the U.S. was up 4.5% during the first half of 2005 over the first half of 2004, reaching $70.5 billion, according to a report issued last week by TNS Media Intelligence.
"The first-half ad expenditure numbers demonstrate sustained momentum from the first quarter of the year," said Steven Fredericks, president-CEO of TNS Media Intelligence.
During the first quarter, ad spending was up 4.4% over the first quarter of 2004.
"The advertising market continues to outperform the general economy, but the third quarter will be a much more difficult comparison period because of last year's stimulus from the Summer Olympics and national elections," Fredericks said.
TNS projects total ad spending will increase by 3.4% in 2005 over 2004.
B-to-b ad spending, while lagging overall ad spending, grew by 3.6% in the first half, according to the Business Information Network Report (BIN) from American Business Media, released in August.
In June, ad spending in b-to-b publications was up 3.3% over June 2004, showing six straight months of growth, according to the BIN report, which is conducted by IMS/The Auditor and PERQ/HCI for health care figures.
"This is a positive indication for the industry and is in line with our forecast of 3% to 4% revenue growth for 2005," said Gordon Hughes II, president-CEO of American Business Media. Print revenue continues its modest growth and adds to the overall good health of the b-to-b industry, he added.
In January, the BIN report was expanded to track ad spending and ad page performance in 22 industry categories. The leading category for ad revenue growth during the first half of the year was government publications, including local, state and federal, with spending up 18.9% over the first half of 2004. Banking, financial and insurance ad spending was up 15% in the first half of the year, and business, advertising and marketing spending was up 14.4%.
B-t o-b media categories that did not do well in ad revenue during the first half of the year were transportation and logistics (down 1.95%), health care (down 2.4%) and computing, software and telecom (down 5%).
In June, the leading categories for ad spending were science, research and development (up 23%), banking, financial and insurance (up 20%) and business, advertising and marketing (up 15.9%).
Ad pages for the first half of 2005 were up 1.8% over the first half of 2004. In June, ad pages were up 0.72% over June 2004.
The leading categories for ad pages during the first half of the year were automotive (up 23.1%), banking, financial and insurance (up 18.7%) and government, including local, state and federal (up 15.7%).
The leading categories for ad page growth in June were automotive (up 22.5%), retail (up 13.3%) and aviation, aerospace and military (up 10.7%).
Also last month, media research firm Veronis Suhler Stevenson released its 2005 Communications Industry Forecast, which projected overall ad spending will increase by 6.1% this year to $199.7 billion. The report also projected that ad spending will grow at a compound annual rate of 6.8% from 2004 to 2009, reaching $260.9 billion.
The fastest-growing segment of advertising will be new media spending, according to VSS. The report forecast new media ad spending will increase by 20.7% in 2005, while ad spending in traditional media will increase by only 3.2% this year.
New media ad spending, including Internet, interactive TV and wireless content, will grow at a compound annual rate of 16.9%, reaching $68.6 billion by 2009, while traditional media advertising is expected to grow at a compound annual rate of only 4.2%, reaching $192.3 billion by 2009.
During the past five years, there has been a gradual shift of time spent away from advertising-based to consumer-supported media, as well as a steady transfer of spending away from traditional to new media advertising, said James Rutherfurd, executive VP at Veronis Suhler Stevenson, in the repor t.
By 2009, the average person is expected to use media almost 10 hours per day, the report projected. Media expected to show the highest growth in usage are interactive TV and wireless content, each with a compound annual growth rate of 31.3%; home video, with a compound annual growth rate of 8%; and videogames, with a compound annual growth of 4.4%.