US adspend up 7% as further signs of recovery shown

NEW YORK - US adspend rose 7% in the first quarter of 2004 in another sign that recovery in the advertising industry is gaining momentum, according to Nielsen Media Research.

Nielsen has forecast that the Olympics in August and political advertising ahead of US Presidential elections in November, will add further fuel to the recovery.

Cable television showed the strongest growth, up nearly 16% from a year ago, while network TV increased more than 10%.

US TV networks have, over the last couple of weeks, been announcing their autumn line-ups in the upfront season, which saw NBC announce 'Friends' spin-off 'Joey', UPN renew 'Enterprise' and Fox order a new series of 'Tru Calling', starring Eliza Dushku.

However, media buyers claim that the increases will not match buying trends for the 2004-05 season that began last week. Insiders claims that spot TV negotiations will be "bullish" this year because of political advertising.

National newspaper spend was up 9.4%, while local newspaper spending increased 4.7%. Local magazine spending grew 8.3% while national magazine spending rose 4.4%

The biggest spenders -- Procter & Gamble, General Motors and the Walt Disney Company -- boosted ad outlays by 16% to a combined $4bn (£2.2bn).

The results do not include internet adspend, due to Nielsen changing its measurement standards a few years ago, however it is being predicted that internet ad spend is likely to grow as much as 20% this year.

On Monday, the Internet Advertising Bureau said that online adspend grew 39% to a record $2.3bn in the first quarter.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content