U.S. advertising spending rose 6.1 percent in 2003 to $128 billion, laying the foundation for an ad industry turnaround after a multiyear slump, tracking firm TNS Media Intelligence/CMR said Monday.
Internet, cable television and Spanish-language media advertising showed double-digit growth rates, suggesting a shift in preferences as advertisers seek new ways to reach consumers in a fragmented media environment.
“The robust growth in 2003 ad spending is a result of the overall health and growth of the economy, the rising level of consumer confidence ... and the improvement in overall corporate performance,” said Steven Fredericks, chief executive at TNS Media Intelligence/CMR.
Online spending rose 15.7 percent to $6.4 billion, cable television spending grew 15.6 percent and Spanish-language television spending rose 12.8 percent, TNS said in a statement.
Local newspaper ad spending rose 13.4 percent to make it the single largest media category at $22.8 billion, as measured by TNS. Network television lagged with 1.8 percent growth at $20.4 billion.
Industry forecasters expect ad spending to pick up in 2004, boosted by election campaigns, the Olympic games and a corporate focus on grabbing market share rather than the cost-cutting prevalent since the 2000 dot-com bust.
By company, packaged goods giant Procter & Gamble spent the most on advertising in 2003, raising its outlay almost 25 percent to $2.67 billion, followed by General Motors Corp. at $2.5 billion, according to TNS.
Other top 10 spenders included entertainment company Walt Disney Co., whose spending grew almost 18 percent, and telecom Verizon Communications, which boosted spending by 10 percent.
