Nielsen: U.S. Advertising Spending Rose 4.6% In 2006

Advertising spending for the full year 2006 rose 4.6% over the same period last year due to gains across major media, according to preliminary figures released today by NIELSEN MONITOR-PLUS.

Advertising spending increased in most reported media, led by Internet (35%), the top 100 spot TV markets (9.1%), Spanish-language TV (8.1%) and outdoor (8.1%). Local radio was essentially flat at a 0.7% gain, while network radio was down 2.4%.

"Total U.S. ad spending continues to grow, with the Internet, Spanish-language and outdoor leading the way," said NIELSEN MONITOR-PLUS SVP/Client Strategy & Product Development Management BRIAN LANE. "Outdoor advertising, considered a traditional media is showing renewed strength due in part to advances in digital technology, such as digital billboards."

Total U.S. ad spending continues to grow, with the Internet, Spanish-language and outdoor leading the way.

Advertising spending for the top 10 companies of 2006 reached $17.9 billion, remaining essentially flat from 2005, with just 1% growth. Six of the 10 advertisers experienced growth. AT&T and VERIZON showed the greatest growth in terms of percent, at 44.4% and 16.2%, respectively. A portion of this increase is due to merger and acquisition activity, and both companies greatly increased their spending in their Internet Service/Web Access business units.

Offsetting these increases, two of the three automotive advertisers reduced ad spending. Specifically, GENERAL MOTORS spending was down 16% and DAIMLERCHRYSLER decreased its ad spending by 6.1%, while both FORD and TOYOTA continue to increase spending. JOHNSON & JOHNSON cut back overall spending on a number of brands, including Orthoevra and Ditropan.

Category Spending

Spending for the 10 largest categories reached $45 billion in 2006, 3% greater than the same period last year. Most product categories have increased spending, with the exception of credit card services (-6.9%), auto dealerships (-3.5%), and automotive, comprising factory & dealer associations (-1.5%). The pharmaceutical industry was the fastest growing in terms of percent increase over last year (14.9%) and in terms of actual dollar increase ($719 million). PFIZER increased spending 32% ($158 million), while MERCK and SEPRACOR each increased their budgets 40%, $118 million and $95 million, respectively.

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