Internet Ad Spend Jumps 49 Percent

According to information released by Nielsen Monitor-Plus and Nielsen//NetRatings, Internet advertising spending increased 49% during the first half of 2006, while overall advertising spending rose 5.1%.

Online ad spend between January and June of this year was $3.8 billion, which compares favorably to the $2.6 billion figure last year.

Telecommunications increased their online ad spend by 122% compared to last year. Financial services, retails goods and services, and Web media segments also saw big increases in online advertising spending.

Spanish language television was second in year-over-year growth with a 21.8% increase in ad spend during the first half of this year.

“As anticipated, Internet spending continues to show exceptional growth as advertisers look for additional means to reach their target audiences, while the growth in Spanish-Language TV can largely be attributed to the World Cup,” said Jeff King, managing director of Nielsen Monitor-Plus.

"Ad spending continues to build in strength when compared to last year, although not at the levels projected by many at the beginning of the year,” he added.

Local magazines saw a 10.5% increase, while national newspapers saw a 6.5% jump, network television saw growth of 6.5%, outdoor marketing realized 6% growth, spot television in the top 100 markets saw a 3.5% increase, and national magazines saw 3.2% growth in ad spend.

The report also indicated that the top 10 advertisers increased their ad spend by 3% to almost $9.8 billion, with AT&T leading the way with a 51% increase in its budget in order to accomplish re-branding goals.

The 10 largest categories saw a 4% increase in ad spend, placing it at $21.9 billion for the first half of 2006. The only category that did not increase was Local Automotive Dealerships, while Wireless Telephone Services and Restaurants both grew the most with 14% gains.

Product placement declined during the first half of this year, due partly to “The Contender” leaving network television. “The Contender” was the top primetime program for product placement last year. Coca-Cola Classic was the most frequently placed brand, while Nike was a distant second.

Sources:

http://www.mediaweek.com/mw/news/media_agencies/
article_display.jsp?vnu_content_id=1003086312

http://www.clickz.com/showPage.html?page=3623339

http://www.nielsenmedia.com/nc/portal/site/Public/
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