TNS Reports Decrease in U.S. Ad Expenditure

NEW YORK, September
11: A new report from TNS Media
Intelligence reveals that total U.S. advertising expenditures slipped in the
first half of 2007 by 0.3 percent to $72.59 billion, versus the same period a
year ago, with broadcast television continuing to post significant half-year
declines.

Internet display
advertising maintained its growth leadership position, registering a 17.7
percent-increase to $5.52 billion. Consumer magazines posted a 6.9 percent-gain
to $11.5 billion. Outdoor expenditures were up 3.6 percent to $1.9 billion and
cable TV followed with a 2.8 percent increase to $8.38 billion.

However, broadcast TV
media continued to experience weakness in the second quarter. Network TV
expenditures fell 3.6 percent to $11.84 billion, while ad spending on Spot TV
dropped 5.4 percent to $7.29 billion. Syndication TV was down 5.3 percent to $2
billion. And Spanish-language TV fell 1.2 percent to $2.13 billion.

During the first half of
2007, the top 10 advertisers spent a combined total of $9 billion, a reduction
of 2.2 percent from last year. Second quarter spending for this select group
was up slightly, rebounding from a steep 5.1 percent decline during the first
three months. The top spot remains with Procter & Gamble with $1.6 billion,
a 1.8 percent gain. AT&T expenditures were off 12.5 percent to $1.1
billion. Increased spending behind core wireless businesses contributed to
higher outlays at Verizon Communications, which was up 8.8 percent to $1.04
billion, and Sprint Nextel was up 13.5 percent, to $689.2 million. At Time
Warner, also included in the top 10 advertisers, the virtual elimination of
advertising support for the AOL service led to a 7.9 percent reduction in total
advertising, to $793.3 million. Disney, in the number nine spot, was down 2.6
percent to $663.8 million.

In terms of brand
appearances in prime-time and late-night programming, in the second quarter of
2007 an average hour of monitored prime-time network programming contained 8
minutes, 4 seconds of in-show brand appearances and 17 minutes, 25 seconds of
commercial messages. The combined total of 25 minutes, 29 seconds of marketing
content represents 42 percent of a prime-time hour.

Unscripted reality
programming had an average of 11 minutes, 52 seconds per hour of brand appearances
as compared to just 5 minutes, 34 seconds per hour for scripted programs such
as sitcoms and dramas. Late-night network talk shows had even higher levels,
averaging 14 minutes, 12 seconds per hour. The combined load of brand
appearances and ad messages in these shows reached 35 minutes, 55 seconds per
hour, or 60 percent of total content time.

"For the first time
since 2001, media advertising expenditures have declined for two consecutive
quarters," said Steven Fredericks, the president and CEO of TNS Media
Intelligence. "While the protracted downturn in automotive spending has
been a prime contributor, the overall results reflect weakness across a wide
range of industries and advertisers. Given the uncertainties about near-term
economic growth and consumer spending, we expect core ad spending will continue
to face challenges during the second half of the year."