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With media largely losing the ability to get easy growth by passing along rate hikes well above the level of inflation (ad spending has generally grown more slowly than the economy since 2001), advertising's share of the economy has been shrinking, to an expected 2.16% of GDP in 2006, the lowest since 1993. The media mix, of course, has been elastic over time as shown in the archive from Univeral McCann.

The average american spends half of leisure hours watching TV (see P. 42), so does TV snare half of ad spending? Not quite. TV in 2005 accounted for 25.1% of U.S. ad spending, according to Ad Age's analysis of spending estimates from Universal McCann Senior VP-Forecasting Robert J. Coen. TV surpassed newspapers as the largest ad medium in 1994, and newspapers' share is falling fast. Newspapers' share plunged from 44.2% of spending in 1935 and nearly 25% in 1990 to 16.7% in 2006. Meanwhile, magazines' ad share peaked at 12.1% in 1946. But as TV took hold, magazines' share fell to an average 7.8% in the 1950s. Magazines' share in 2006 was 4.7%. The fall and rise of radio should offer hope to old media. That medium's ad share peaked at 14.9% in 1945 but plummeted to 5.7% by 1956 as television grabbed the nation's eyes and ears. But radio climbed back, reaching an 8% share by 2002, a 50-year high. Radio's share in 2006 was 6.9%. And what of the internet? Mr. Coen's data give it a 3.3% share in 2006 (excluding paid search, such as Google). ZenithOptimedia projections, which include search, suggest the internet accounted for 7.1% of U.S. major media spending in 2006. That share is heading up, leaving old media to fight for their slice of the pie.

ad spending: Bolstered by the general election and Olympics, U.S. advertising expanded 5.2% to $285.1 bil. in '06, but without that stimuli in '07, growth should ease back to 4.8%, predicts Robert J. Coen of Universal McCann. Coenof Universal McCann

U.S. advertisers

13 Toyota Motor Co.

Ford spent 34% more ad dollars than Toyota in '05 on all brands, but that did little to prepare it in '06 for a Toyota sprint that narrowed No. 2 Ford's share lead in U.S. vehicle sales over No. 3 Toyota from 5.3 points in '05 to 2.3 points through November '06. Toyota even outsold Ford in July and November.

U.S. brands

1 Verizon

Since '03, Verizon has been virtually unchallenged in claiming the top spot in the Top 200 Brands report, but at the mid-year point in '06 its lead had narrowed over Cingular, whose outlays grew 44.2% compared to Verizon's 6.2% over the prior-year period.

global Marketers

1 Procter & Gamble

P&G draws more than $1 billion revenue each from 23 global brands, far ahead of No. 2 Unilever's 11 brands at such magnitude. P&G's ad total hit 8.3% of $98.3 billion spent by the world's Top 100, according to data collected by Ad Age from 84 countries.

market wars:

Share battles pit the nation's top marketers against one another across multiple product categories. Data from Ad Age's 51st annual 100 Leading National Advertisers report.

Restaurant chains

6 Starbucks

With $4-plus espresso drinks and U.S. units reaching toward 8,000, it's little wonder Starbucks is expected to replace Taco Bell as the No. 5 U.S. restaurant chain in sales by the end of 2007.

beverage segments

2 Bottled water

Carbonated soft drinks still have fizz, but they're a bit flatter as bottled waters, sports and energy drinks and ready-to-drink teas continue to syphon off share points from soda's commanding lead.

top video game platforms

2 GameBoy

Unit sales of more than 600,000 of Nintendo's newly launched Wii platform is what marketers like to see. Wii, Sony's PS3 and Microsoft's Xbox 360 each offer advertisers the ability to change game-imbeded ads or messages, a $56 million ad market expected to top $700 million in three years.

super bowl: Ad Age's Ad Reviewer Bob Garfield picks and comments on the five great Super Bowl ads.

IAG's top spots: Budweiser's horse ads grab IAG's "most liked" spot of the year and score 3rd in "recall".

garfield's Hits & wit

Apple "1984"

No product shot, and yet still the greatest TV commercial ever made.

Master Lock ['74]

One padlock and the whole year's TV budget shot, memorably, to smithereens.

Reebok "Terry Tate" ['03]

Maybe the funniest Super Bowl ad ever, it sold absolutely nothing but the punch line.

Bud Bowl ['89]

A football game between beer bottles, it was diverting in year one, but none of the far too many successive ones.

Mean Joe Greene ['80]

One the most beloved ads in history, it made viewers go "ahhhh" and Coke sales go flat.

40 years of super bowl ad costs

Table presents average prices for 30-second spots in the Super Bowls. Rating is percentage of U.S. households. Data from Ad Age reports and Nielsen Media Research. Ad costs in this table are actual dollars. In 1967 the Super Bowl was shown on both CBS and NBC.

IAG'S top spots of 2006

Based on new ad executions launching from 1/1 - 11/30/06. The Likeability Score is the percentage of TV viewers who report to like "a lot" an ad they were exposed to during the normal course of viewing TV (among those recalling the brand of the ad). These scores are then indexed against the mean score for all new ads during the time period (Likeability Index). 100 equals average. The Recall Score is the percentage of TV viewers who can recall within 24 hours the brand of an ad they were exposed to during the normal course of viewing TV. These scores are then indexed against the mean score for all new ads during the period (Recall Index). 100 equals average. See for more.
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