TNS: Online display ads increase 17%

The latest findings from TNS Media Intelligence indicate that online advertising is growing faster than other ad mediums. The online display ad spend increased by about 17% in the first six months of 2007. The overall ad spending is actually down about 0.3%.

by Kristina Knight

This is the first time since 2001 that media ad expenditures have shown a decrease in two consecutive quarters. Although the decline is relatively small, advertisers appear to be slowing their spending habits.

Steven Fredericks, president and CEO of TNS Media Intelligence said, “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."

Here is the breakdown in spending: online display ads increased by 17.7% to reach $5.52 billion while consumer magazines showed a 6.9% increase to reach $11.50 billion. Outdoor ad spending increased by more than 3% and cable television increased by 2.8%.

The downturn in spending appears to be related to broadcast television spending; that spend fell by 3.6%. Spot TV and syndicated television both fell by more than 5%. Losses were also shown in both newspaper and radio ad spending. Local newspapers saw a 5% decrease in ad spending while radio budgets fell by almost 3%.