2003 Online Ad Spend Projected to Rise

NEW YORK Internet ad spending is expected to rise 7.4 percent this year, according to mid-year estimates from TNS Media Intelligence/CMR.

The New York-based company that tracks ad spending in major media estimated yesterday that overall ad spending for the year would increase 4.3 percent to $124.7 billion.

“The first quarter of the year came in very strong at 4.9 percent with [overall ad] spending totaling $28.4 billion—this robust spending is likely a precursor for the rest of the year,” TNS Media Intelligence/CMR president and CEO Steven Fredericks said in a statement.

For the first quarter, online ad revenue totaled $1.5 billion, up 12 percent from $1.4 billion during the year-ago period [IQ Daily Briefing, June 13]. The Q1 numbers represented a rebound for the Internet sector, which experienced a 12 percent decline to $5.7 billion in ad spending for full-year 2002, according to TNS Media Intelligence/CMR

The media categories ranking above the Internet, in terms of projected 2003 ad spending growth, included Spanish-language TV (16.9 percent) and syndication (9.6 percent). All other media categories are expected to record increases: cable network TV (7.2 percent), consumer/Sunday magazines (5.4 percent), radio (4.9 percent), business-to-business magazines (3.6 percent), outdoor (3.3 percent), network TV (2.8 percent), newspaper (2.1 percent) and spot TV (1.8 percent).

TNS Media Intelligence/CMR attributed increased spending to the strong upfront season, the continued rise of Hispanic media spending, the active political environment and the steady growth in new brand spending.