NEW YORK Advertising expenditures rose to $31.5 billion in the first quarter of 2004, an increase of nearly 10 percent over the same period the year before, according to TNS Media Intelligence/CMR.
"The economy is a bellwether for overall ad spending, and as the economy continues to grow, ad spending follows suit," said Steven Fredericks, president and CEO of TNS/CMR, in a statement. "The vigorous advertising growth rate for first-quarter 2004 also benefited from favorable comparisons to first-quarter 2003, during which concerns regarding the Iraq War dampened March spending levels."
According to the media and marketing tracking company; Internet ad spending was up 28 percent to $1.8 billion; syndication rose nearly 17 percent to $947 million; cable TV advanced 16 percent to $2.9 billion; and national newspapers gained 15 percent to $774 million.
Network TV was up to $5.6 billion, an increase of 12 percent over the year before. Spending in the pharmaceutical, domestic auto, motion picture and telecommunications services advertising categories fueled this growth, according to TNS/CMR.
The top 10 advertisers showed a 12 percent increase in year-to-year spending for the quarter, with General Motors and Procter & Gamble leading the way. P&G increased its ad spending to $669 million, an increase of 16 percent, while GM spent $661 million, 20 percent more than in the first quarter of 2003.