US ad spending rose 4.1 percent in 2006: TNS

In a recent sign of how major advertisers are shifting money out of traditional media, ad tracking firm TNS Media Intelligence reported that the nation’s 50 biggest advertisers cut their spending on ‘measured’ media such as TV, print and Internet display ads by 1.5 percent in 2006, however, total advertisement spending in the US grew by 4.1 percent to $149.6 billion if compared with 2005. Ad spending during the fourth quarter of 2006 was up by 4.2 percent against the corresponding period in 2005. On the other hand, spending on interactive display advertising jumped 17.3 percent to $9.8 billion last year, increasing online share of all ad spending from 5.8 percent to 6.5 percent. Network television advertising spend was $22.9 billion last year, just over twice that of Internet spending, but grew only 2.5 percent above what it drew the previous year. Cable showed a slightly higher growth rate of 3.4 percent, to $16.8 billion. Obviously the US advertising spending failed to increase by the desires speed due to sluggish auto sector of the country. The downturn in spending by the troubled U.S. auto industry is putting even more pressure on advertising than previously thought, taking a particular toll on expenditures at consumer magazines and local magazines.

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