Nielsen reported today that U.S. advertising spending rose 5.7% in the first half, with Spanish-language TV followed closely by cable TV, up 13.1%, and the Internet, which rose 12.6%.
Local magazines up 8.7%
One surprising area of growth was local magazines, which leapt 8.7% for the period, ahead of national magazines, up 7.9%, and network TV, which grew by 4.9% but still trailed even outdoor media, which saw ad spending increase by 6.9% for the period.
Only two sectors of the media saw a spending decline: network radio and local spot buys in the top 100 markets were down 0.8% and 0.6%, respectively. Jeff King, managing director of Nielsen Monitor Plus, said that while the spot TV market was down in the first quarter it bounced back in the second quarter with 3.1% gain.
Growth at newspapers was particularly sluggish, up only 1.1% at national newspapers and 1.8% at local newspapers. Trade magazines fared slightly better, showing a slight improvement on the half-year period last year, up 2.7%.
Ten largest categories
Nielsen figures also revealed that the 10 largest advertiser categories spent $21 billion in the first half, up 5.4% on the period, with automotive leading the pack, despite a 7.8% cut back by DaimlerChrysler.
The largest spending increase in the top 10 categories was by credit-card companies, up 24.5% to $848 million, closely followed by wireless providers, up 18.2% at to $1.4 billion. Two categories showed declines for the period: movie advertising was down 3% and department store spending was down 3.1%. Pharmaceutical spending was practically flat at $2.3 billion from last year’s half-year point.
Altria spend up 20%
Among top 10 advertisers spending more during the period were Johnson & Johnson, up 24.2% to $842 million, and Altria Group, up 20% to $707 million.
Walt Disney Co. reduced first-half spending by 6.1% to $677 million, while Procter & Gamble Co. also pulled back spending, ending the period down 3.9% to $1.39 billion. P&G is the No. 2 marketer in ad spending, according to Advertising Age's 100 Leading Advertisers Report. It spent $3.92 billion in 2004.