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First Quarter Ad Spending: Internet Up 16.7%

Written by: Paul Kedrosky

Article Overview: The first quarter 2007 numbers are out for ad expenditures, and they are solid, if largely unimpressive. By way of context, they are skewed by last year's Olympic advertising and they show a fall off in non-Internet areas. The latter category, however, kicked ad ass, with online display advertising (CPM) up a smashing 16.7% year-over-year.

First Quarter Ad Spending: Internet Up 16.7%

The first quarter 2007 numbers are out for ad expenditures, and they are solid, if largely unimpressive. By way of context, they are skewed by last year's Olympic advertising and they show a fall off in non-Internet areas. The latter category, however, kicked ad ass, with online display advertising (CPM) up a smashing 16.7% year-over-year:

“After a sluggish January, the pace of advertising expenditures picked up slightly at the end of the quarter,” said Steven Fredericks, president and CEO of TNS Media Intelligence. “We also must recognize that 2007 first quarter results are adversely affected by comparisons against last year’s Winter Olympics. However, after factoring out the incremental contribution of special events, it is apparent that core growth rates have slowed further from last year’s lackluster levels.”

Ad Spending By Media

Only six of the 19 measured media registered year-over-year gains in the first quarter. Internet display advertising posted a 16.7 percent increase to $2.70 billion, as marketers continued to expand their online programs. Consumer magazines advanced 7.1 percent to $5.17 billion on the strength of higher rate card pricing and a modest uptick in page counts. Cable Network expenditures were up 6.3% to $3.82 billion, with niche interest channels pacing ahead.

Broadcast TV comparisons were adversely affected by the absence of the biennial Olympic Games event. Network TV ad spending tumbled 7.2 percent to $6.05 billion while Spot TV expenditures slipped 4.1 percent to $3.74 billion.

Newspaper and Radio media continued to significantly lag the overall market. Expenditures for Local Newspapers fell 4.6 percent to $5.39 billion on persistently weak demand from the auto, telecom and real estate categories. Radio spending declined 2.1 percent to $2.29 billion.

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Article Tags: cable network, consumer magazines, core growth, display advertising, estate categories, fredericks, internet areas, latter category, local newspapers, media intelligence, network tv, niche interest, olympic games, olympic games event, radio media, spot tv, tv ad, tv comparisons, uptick, winter olympics



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