TNS Media Intelligence Reports U.S. Advertising Expenditures Increased 0.6 Percent in First Quarter 2008

Business Wire, June 11, 2008

NEW YORK -- Total measured advertising expenditures in the opening quarter of 2008 increased by 0.6 percent as compared to the same period in 2007, according to data released today by TNS media intelligence, the leading provider of strategic advertising and marketing information.

"Enduring concerns about economic conditions and consumer spending behavior continued to cast a pall over the advertising market during the first quarter," said Jon Swallen, SVP Research at TNS media intelligence. "After a hopeful start to the year, the pace of ad spending slowed perceptibly during March and early figures from the second quarter indicate little immediate or sustained improvement in the core ad economy."

Ad Spending By Media

Growth leadership, on a percentage basis, was strongest among smaller media types. Sunday Magazines (+17.1 percent) and Network Radio (+12.0 percent) were boosted by an extra week in their reporting quarters. Syndication TV expenditures surged 11.2 percent, aided by more hours of programming and limited exposure to the writer's strike.

Internet display advertising fell back from its double-digit growth rates of last year but still achieved a healthy gain of 8.5 percent. Cable TV (+4.1 percent) and Outdoor (+2.5 percent) also experienced some slowing compared to recent periods.

Elsewhere, Network TV expenditures increased 0.8 percent, its best quarterly performance in two full years. Consumer Magazine spending was up just 0.2 percent as higher budgets from food advertisers were neutralized by reduced commitments from direct response and pharmaceutical marketers.. Spot TV expenditures slipped 2.4 percent, despite easy comparisons against 2007 levels. The Newspaper sector, beset by the continuing weakness in automotive and real estate, experienced a 5.2 percent decline in total spending.

Percent Change in Measured Ad Spending:








Q1 2008 vs. Q1 2007 1

















MEDIA SECTOR                             % CHANGE








Media Type








(shown in rank order of 2008 spending)








TELEVISION MEDIA                         1.7%








Network TV                               0.8%








Cable TV                                 4.1%








Spot TV 2                                -2.4%








Syndication - National                   11.2%








Spanish Language TV                      4.4%








MAGAZINE MEDIA 3                         0.8%








Consumer Magazines                       0.2%








B-to-B Magazines                         -3.2%








Local Magazines                          -2.1%








Sunday Magazines                         17.1%








Spanish Language Magazines               14.2%








NEWSPAPER MEDIA                          -5.2%








Local Newspapers                         -5.0%








National Newspapers                      -6.2%








Spanish Language Newspapers              -5.3%








INTERNET 4                               8.5%








RADIO MEDIA                              -4.5%








Network Radio                            12.0%








National Spot Radio                      -3.1%








Local Radio 5                            -7.2%








OUTDOOR                                  2.5%








FSIs 6                                   8.8%








TOTAL                                    0.6%
[TABLE OMITTED]

Ad Spending by Advertiser

The top 10 advertisers in the first quarter of 2008 spent a combined total of $4,425.5 million, a 1.6 percent increase from last year. Across the top 50 companies, a more diversified group of marketers representing nearly one-third of total ad expenditures, spending fell by 1.4 percent.

Procter & Gamble maintained its position as the largest advertiser with $836.4 million in spending, a robust 15.8 percent increase versus a year ago. The company aggressively expanded advertising support across its portfolios of personal care and household cleaning products. PepsiCo vaulted into the Top 10, posting a 39.5 percent increase to $334.4 million on higher spending for the Gatorade brand line.

Among the auto manufacturers, General Motors hiked its media budgets by 12.6 percent, to $532.1 million. Model redesigns for the Chevrolet Malibu and Cadillac CTS triggered much of the incremental spending. By contrast, Ford Motor Company slashed its ad expenditures 31.0 percent, to $291.1 million with the reductions spread across its auto and truck divisions.

Leading telecommunication companies turned in mixed results. Verizon Communications spent $531.1 million in the period, a gain of 10.4 percent. AT&T lowered its advertising budgets by 14.6 percent to $468.1 million.

[TABLE OMITTED]
Source: TNS media intelligence









1 Figures do not include FSI, House Ads or PSA activity.

Ad Spending by Category

The Top 10 advertising categories in the first quarter of 2008 spent an aggregate $17,399.4 million, down 1.8 percent from a year ago. Financial Services remained the top category at $2,235.5 million, eking out an increase of 0.3 percent despite cutbacks from many of the top companies across the banking, credit card and lending segments.