U.S. Adspend Remains Flat in First Quarter

NEW
YORK, June 17: According to Nielsen Monitor-Plus, advertising spending in the
U.S. remained flat in the first quarter of this year, rising 0.5 percent.

In
television, advertising within programming and on networks geared towards
African-American and Hispanic viewers grew 12.9 percent and 7.7 percent,
respectively. Cable TV adspend rose 12.9 percent and syndication TV advertising
climbed 2.3 percent. However, network TV advertising was down 3.4 percent.
Internet advertising impressions grew by 14.7 percent, with sponsored
search-link advertising driving overall growth, and rich media leading growth
in the display category.

Spending
for the ten largest advertising categories reached more than $10 billion in the
first quarter, down 0.47 percent. Most product categories showed increased
spending, with the exception of segments such as automotive, down 8.32 percent;
motion picture, declining 1.14 percent; department store, falling 0.44 percent;
and telephone services (wireless), which dipped 0.38 percent.

Advertising
spending by the top ten companies for the first quarter reached more than $4
billion, up slightly from $3.96 billion during the same year-ago period. Half
of the top ten advertisers increased their budgets from the first quarter of
2007 to the first quarter of this year, while the other half showed decreases.

Procter
& Gamble remains the biggest advertiser in the U.S., spending $902.8
million in the quarter, up 19.6 percent. PepsiCo, which increased ad spending
from $253.6 million in the first quarter of 2007 to $354.8 million in the first
quarter of this year, had the biggest gain, up 39.86 percent. The largest
decline, 26 percent, came from Ford Motor Corporation. Time Warner’s adspend
fell 7.8 percent, while The Walt Disney Company’s declined 9.7 percent to
$299.9 million. Other companies in the top ten include Verizon Communications,
Johnson & Johnson, AT&T, Toyota Motor Corporation and General Motors.

—By
Irene Lew