Online Ad Spending Rebounds in First Half

NEW YORK The Internet recorded significant advertising gains in the first half, according to the latest figures from TNS Media Intelligence/CMR, with U.S. online ad expenditures increasing 15.3 percent from the year-ago period.

TNS Media Intelligence/CMR, the New York-based company that tracks ad spending in major media, reported that Internet ad revenue was $3.2 billion for the first half of the year, up from $2.8 billion during the same time the year before. Q2’s $1.7 billion in online ad expenditures slightly outpaced Q1’s $1.5 billion.

The first-half numbers represent a rebound for the Internet sector, which experienced a 12 percent slide to $5.7 billion in ad spending for full-year 2002, according to TNS Media Intelligence/CMR [IQ Daily Briefing, March 12].

Total U.S. ad spending in the first half came in at $61.7 billion, a 7 percent rise from $57.7 billion in the first six months of 2002.

“These first-half results are further evidence that the ad recovery is well under way and that 2003 will be a very healthy year for the advertising marketing place,” said Steven Fredericks, president and CEO of TNS Media Intelligence/CMR.

Cable TV, syndication-national and Spanish-language network TV were the only media categories to surpass the Internet in terms of first-half ad spending growth, posting gains of 16.7 percent, 15.8 percent and 15.4 percent, respectively.

Other media categories enjoying first-half boosts included local newspapers (11.4 percent), consumer magazines (10.5 percent), national spot radio (8.8 percent), Sunday magazines (7.5 percent), outdoor (5.3 percent), local radio (4.2 percent), local magazines (3.9 percent), network radio (2.7 percent), business-to-business magazines (1.8 percent), national newspapers (1 percent) and spot TV (0.2 percent). The lone category posting a negative in the first half was network TV, which saw ad revenue decline 0.4 percent.