Media Ad Spending in 2007

Ad spending through traditional media channels reached $149 billion in 2007, up 0.2% compared with 2006, according to data from TNS media intelligence.Internet display advertising was again the fastest-growing medium, increasing 15.9% in 2007 to $11.31 billion in expenditures. Consumer magazines posted a 7% gain on the strength of higher spending by consumer packaged goods marketers. Cable TV spending reached $17.84 billion, an increase of 6.5%.Ad spending declines in newspaper and radio media accelerated during the fourth quarter. For the full year, local newspapers were down 5.6% to $22.66 billion and aggregate radio expenditures slipped 3.5% to $10.69 billion. Both suffered from spending reductions by automotive, media and retail advertisers.Share of Measured Spending By MediaInternet display and magazine advertising continued to increase their share of total expenditures, finishing 2007 at 7.6% and 20.4%, respectively. The offsetting share declines came principally come from newspapers and radio, although local TV's share also has been edging downwards.The top 10 advertisers in 2007 spent a combined $18.66 billion in measured media, a drop of 0.3% compared with 2006. Spending among the top 100 marketers fell 2.6% to $63.35 billion. Expenditures outside the top 100 rose 2%.Procter & Gamble was again the largest advertiser, with $3.5 billion in spending that reflects an increase of 5.6% over 2006. Verizon Communications posted the highest growth rate among the top 10, rising 11.1% to $2.1 billion. The largest decrease in the group was from General Motors, for which outlays fell 7.7% to $2.1 billion.Measured Ad Spending by CategoryExpenditures for the 10 largest advertising categories grew a meager 0.9%, to $74.65 billion. In aggregate, these categories account for approximately one-half of all measured ad spending.Financial services holds the top spot, with $9.12 billion in expenditures, a gain of 5.4%. Lower spending by credit card marketers and late-year cutbacks by mortgage and loan advertisers were more than offset by rising budgets from retail banks and investment brokers.Direct response had the largest percent gain among the top categories, rising 17% to $7.45 billion. Personal care products advanced 10.1% to $6.18 billion.Top Ten Advertising Categories: Jan-Dec 2007 vs. Jan-Dec 2006 Category Jan-Dec 2007 ($Millions) Jan-Dec 2006 ($Millions) % Change Financial Services $9,122.9 $8,656.4 5.4% Telecom $9,052.3 $9,438.3 -4.1% Local Services & Amusements $8,946.9 $8,700.7 2.8% Auto, Non-Domestic $8,115.6 $8,689.5 -6.6% Misc Retail1 $8,071.6 $8,279.7 -2.5% Direct Response $7,447.9 $6,364.9 17.0% Auto, Domestic $7,053.1 $7,595.0 -7.1% Personal Care Products $6,176.8 $5,611.7 10.1% Travel & Tourism $5,336.0 $5,361.1 -0.5% Restaurants $5,331.7 $5,305.1 0.5% Total $74,654.8 $74,002.3 0.9% Source: TNS media intelligence. Note: Figures do not include FSI or PSA activity. The sum of the individual categories may differ from the total due to rounding. 1 Misc. Retail does not include these retail segments: Department Stores, Food Stores; Home & Building Supply Stores.

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