Web Ad Spend Stays Strong in Q1

Online ad spending continued its healthy growth in the U.S. during 2005’s first quarter, according to new TNS Media Intelligence figures. Interactive spending for the first quarter of 2005 was $1.9 billion, an 8.2 percent increase over the year ago period. Further, it commanded 5.7 percent of the $33.5 billion national ad expenditure. TNS does not measure spending on search marketing.

The figures place online among the fastest growing media for Q1, though several others grew faster. These include local magazines, which, according to TNS grew, by 26.2 percent, and cable television, which showed an 18.2 percent lift. Only two media saw spending shrink: spot TV (-4.8 percent) and network radio (-3.2 percent). Most media displayed modest growth of between .3 and 5 percent.

In terms of dollar value, local newspapers and network TV led the pack, commanding $5.9 million and $5.8 million respectively.

In the top marketing categories, domestic auto marketers spent the most, with $2.1 billion in ad expenditures, and were closely followed by non-domestic auto’s $2 billion. The biggest growth category was direct response, which leapt from $1.2 billion a year ago to $1.5 billion for the quarter just ended.

TNS has predicted an 11.2 percent increase in interactive media spending for the year.

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