NEW YORK, March 19 /PRNewswire/ -- Advertising spending for the full
year 2006 rose 4.6% over the same period last year due to gains across
major media, according to preliminary figures released today by Nielsen
Monitor-Plus, the advertising intelligence service of The Nielsen Company.
Advertising spending increased in most reported media, led by Internet
(35%), the top 100 Spot TV markets (9.1%), Spanish-Language TV (8.1%) and
Outdoor (8.1%). Growth in a number of media remained flat or slightly down
over last including B2B magazines, Coupons, smaller Spot TV markets,
Network Radio, and Local Newspaper. "Total U.S. ad spending continues to
grow, with the Internet, Spanish-Language and Outdoor leading the way,"
said Brian Lane, Senior Vice President of Client Strategy & Product
Development Management for Nielsen Monitor-Plus. "Outdoor advertising,
considered a traditional media is showing renewed strength due in part to
advances in digital technology, such as digital billboards."
2005 vs. 2006 Advertising Growth
% Change
Internet* 35.0%
Spot TV Top 100 mkts 9.1%
Span Lang National TV 8.1%
Outdoor 8.1%
National Sunday Supplement 5.6%
Local Sunday Supplement 4.6%
Network TV 4.2%
National Magazines 3.9%
Local Magazine 3.3%
National Newspaper 2.9%
National Cable TV 1.8%
Spot Radio 0.7%
B2B Magazines -0.2%
Coupon -0.6%
Spot TV Mkts 101-210 -0.9%
Network Radio -2.4%
Local Newspaper -3.6%
Total 4.6%
Source: Nielsen Monitor-Plus. *Internet data provided by
Nielsen//NetRatings AdRelevance
Notes:
- Nielsen//NetRatings AdRelevance service estimated online advertising
expenditures account for CPM-based image-based advertising. All reported
estimated expenditures and impressions do not account for the following
placement types: text only, paid fee services, performance-based campaigns,
compound ads, sponsorships, barters, in-stream ("pre-rolls") players,
messenger applications, partnership advertising, promotions and email
campaigns. AdRelevance currently does not report estimated spending for
paid search advertising. Above data does not include any house advertising
activity.
- Syndicated TV was omitted due to changes in tracking; Newspaper
reflects display ads only; Coupon reflects CPG products only.
Advertiser Spending
Advertising spending for the top 10 companies of 2006 reached $17.9
billion, remaining essentially flat from 2005, with just 1% growth. Six of
the 10 advertisers experienced growth. AT&T and Verizon, both Telephone
Services companies, showed the greatest percent growth in terms of percent,
at 44.4% and 16.2%, respectively. A portion of this increase is due to
merger and acquisition activity, and both companies greatly increased their
spending in their Internet Service/Web Access business units.
Offsetting these increases, two of the three automotive advertisers
reduced ad spending. Specifically, GM spending was down 16% and
DaimlerChrysler decreased its ad spending by 6.1%, while both Ford and
Toyota continue to increase spending, and in particular on brands like
Toyota Camry and Rav4, Ford Fusion and Mercury Milan.
Johnson & Johnson cut back overall spending on a number of brands
including Orthoevra and Ditropan.
Top 10 Advertisers % Change
2005 vs. 2006
Procter & Gamble Co. 1.1
General Motors Corp. -16.0
AT&T Inc. 44.4
Ford Motor Co. 10.2
DaimlerChrysler AG -6.1
Time Warner Inc. -6.0
Johnson & Johnson -20.4
Verizon Communications Inc. 16.2
Toyota Motor Corp. 14.2
Walt Disney Co. 4.6
Total Top 10 0.5
Source: Nielsen Monitor-Plus
Based on spending estimates in the following media: Network TV, Cable
TV, Spot TV, Syndicated TV, Hispanic TV, Nat'l/Local Magazine, Network/Spot
Radio, Outdoor, Coupons (CPGs only), Nat'l/Local Newspapers (display ads
only), Nat'l/Local Sunday Supplements
Category Spending
Spending for the 10 largest categories reached $45 billion in 2006, 3%
greater than the same period last year. Most product categories have
increased spending, with the exception of Credit Card Services (-6.9%),
Auto Dealerships (-3.5%), and Automotive, comprised of Factory & Dealer
Associations (-1.5%). The Pharmaceutical industry was the fastest growing
in terms of percent increase over last year (14.9%) and in terms of actual
dollar increase ($719 million). Pfizer increased spending 32% ($158
million), while Merck and Sepracor each increased their budgets 40%, $118
million and $95 million, respectively.
Top 10 Product Categories % Diff 2005 vs. 2006 $ Diff 2005 vs. 2006
Automotive/Auto Dealer Assoc -1.4 -$197,411,660
Pharmaceutical 14.9 $718,930,994
Automotive - Dealership (Local) -3.5 -$176,694,537
Department Stores 4.1 $165,886,796
Quick Service Restaurants 5.2 $203,393,575
Motion Picture 3.1 $116,132,628
Telephone Svcs.-Wireless 10.5 $316,261,114
Direct Response Products 10.0 $202,987,740
Credit Card Services -6.9 -$136,567,161
Furniture Stores 6.8 $106,504,676
Total Top 10 Categories 3.0 $1,319,424,165
Source: Nielsen Monitor-Plus
Based on spending estimates in the following media: Network TV, Cable
TV, Spot TV, Syndicated TV, Hispanic TV, Nat'l/Local Magazine, Network/Spot
Radio, Outdoor, Coupons (CPGs only), Nat'l/Local Newspapers (display ads
only), Nat'l/Local Sunday Supplements
Product Placement
Nielsen's Product Placement Service shows a decrease in the overall
number of placements for primetime network programming with a total of
79,701 occurrences for 2006 compared to 102,793 occurrences for 2005. While
the total number of occurrences is down, placements that combine an audio
and visual mention have increased by 10%. In 2006 there were 4,912
audio/visual combination occurrences compared to 4,456 in 2005.
Top Programs & Brands
The Top 10 programs that featured product placements for 2006 accounted
for 23,344 occurrences. General dramas (22,825 occurrences) replaced
situation comedies (19,161 occurrences) as the number one program type to
feature brand integrations, due to the airing of more episodes for this
type of program in 2006. American Idol featured 4,086 product placements,
with more occurrences than any other program, a 17% increase over 2005. The
Biggest Loser, not on the top ten list last year, ranked 4th with (2,478)
occurrences. The Top 10 brands totaled 10,323 occurrences in 2006, a 13%
increase. Coca-Cola was the top brand, with 3,355 occurrences, a 19%
increase over 2005. Chef Revival Apparel placed second with 1,592
occurrences.
"The total number of occurrences for product placements decreased in
2006, and can be largely attributed to shifts in programming such as the
airing of more dramas, which tend to carry less product placements than
other program genres," said Annie Touliatos, Director of Marketing and
Strategy for Nielsen Product Placement Service. "However, placements that
feature a combination of audio and visuals are rising indicating an
increase in planned placements."
Top 10 Brands: Product Placement
2006
Brand Total # Occurrences
Coca-Cola Soft Drinks 3,355
Chef Revival Apparel 1,592
Nike Apparel 1,307
24 Hour Fitness CTRS-CLUBS 894
Chicago Bears FTBL TM 604
Dell Computers SYS 556
Cingular Wireless TEL SRVCS 533
Nike SPRT FTWR 497
Starter Apparel 496
SLS Electronic Equip Speakers 489
Total 10,323
Source: Place*Views, Nielsen Product Placement Service
Top 10 Programs: Product Placement
2006
Program Network Total # Occurrences
American Idol FOX 4,086
Amazing Race CBS 2,790
Extreme Makeover Home Edition ABC 2,787
The Biggest Loser NBC 2,478
America's Next Top Model UPN/CW 2,309
King of Queens CBS 1,954
Hells Kitchen FOX 1,909
The Apprentice NBC 1,831
Rock Star Supernova CBS 1,609
Big Brother 7 CBS 1,591
Total 23,344
Source: Place*Views, Nielsen Product Placement Service
Negative Political Advertising
For the 2006 mid-term elections, a total of 2,629,685 local television
spots ran representing 93% of all political ad expenditures, and that was
up by 24% from 2002 mid-term elections. 41% of all political spots in 2006
were classified as negative. Leading the way in negative ads among the top
advertisers was the Republican National Committee and the Democratic
National Committee with 89% and 85% of their ads being labeled as negative.
Following is a snapshot of negative advertising for the mid-term elections
of 2006.
Negative Political Advertising Mid-Term Elections
Candidate Number of Spots % Negative Spots
Texas Governor
Rick Perry 24,700 19%
Chris Bell 5,086 61%
Tennessee Senate
Bob Corker 35,336 40%
Harold Ford JR 15,384 30%
New York Governor
Eliot Spitzer 30,780 0%
John Faso 3,339 0%
Michigan Governor
Jennifer Granholm 23,003 31%
Dick Devos 46,962 45%
Illinois Governor
Rod Blagojevich 34,665 66%
Judy Topinka 9,923 67%
Florida Governor
Charlie Crist 40,278 45%
Jim Davis 14,011 70%
Source: Nielsen Monitor-Plus
About The Nielsen Company
The Nielsen Company is a global information and media company with
leading market positions and recognized brands in marketing information,
media information, business publications, trade shows and the newspaper
sector. The privately held company has more than 42,000 employees and is
active in more than 100 countries, with headquarters in Haarlem, the
Netherlands, and New York, USA. For more information, please visit,
http://www.nielsen.com.
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