Nielsen Reports Overall Spending Up 5.7%

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NEW YORK ( -- Marketers upped their spending on Spanish-language TV in the first half of 2005 by 15%, compared with the same period last year, according to Nielsen Monitor-Plus, the advertising
unit of TV measurement company Nielsen Media Research. The sector, dominated by Univision in the U.S., saw the biggest jump of all media in the first half.

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.

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