Web’s Ad Spend Growth Outpaces Other Media

NEW YORK The Internet recorded the largest year-over-year ad spending gain in 2003 of all media, posting a 15.7 percent rise to $6.5 billion, according to TNS Media Intelligence/CMR.

That figure surpasses TNS Media Intelligence/CMR’s mid-year 2003 estimate of 7.4 percent growth in online ad expenditures [IQ Daily Briefing, June 25, 2003]. The Web’s better-than-expected performance was attributed to increased advertiser confidence due to expanding broadband penetration, more appealing ad formats and improved efficacy, among other key factors.

The numbers represented a rebound for the Internet sector, which experienced a 12 percent decline to $5.6 billion in ad spending in 2003.

TNS Media Intelligence/CMR, a New York-based company that tracks ad spending in major media, found that overall ad expenditures in 2003 rose 6.1 percent to $128.3 billion.

In addition to the Internet, other media that reported double-digit gains for 2003 included: cable TV (15.6 percent), national syndication (15.3 percent), local newspapers (13.4 percent) and Spanish-language TV (12.8 percent). The lone medium to record a decline last year was spot TV, whose ad spending fell 5.4 percent from $17.2 billion to $16.2 billion.