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TNS: Cable Places 5th in Ad Outlays

3/13/2005 7:00 PM Eastern

Basic-cable networks generated $14.2 billion in advertising revenue last year, up 13.8% compared to 2003, according to TNS Media Intelligence.

The report was based on data from 44 programmers.

Internet advertising generated the biggest gains, rising 21.4% in 2004 to $7.4 billion, while outdoor advertising jumped 20.1% to $3.2 billion.

Local newspapers took the lion’s share of advertising revenue, generating $24.5 billion in ad revenue in 2004, up 6.7% from the previous year. Network TV was the second biggest category, pulling in $22.5 billion in ad revenue, 10.7% more than in 2003.

Consumer magazines ranked third, with ad revenue jumping 11.2% to $21.3 billion; followed by spot TV, which generated $17.3 billion in ad revenue 2004, up 11.7%.

National basic-cable networks ranked No. 5 in total ad spending, according to TNS, ahead of the Internet.

National spot radio was the only sector that sustained a decline in 2004, with spending off 0.7% to $2.6 billion.

“Advertising spending expanded steadily throughout 2004 and has now grown at a faster rate than the general economy in nine of the last 10 years,” TNS CEO Steven Fredericks said in announcing the outlays.

TNS said Procter & Gamble Co. was once again the biggest media buyer in 2004, spending $2.9 billion on advertising, up 7.4% from 2003.

P&G was followed by General Motors Corp. ($2.8 billion); Time Warner Inc. ($2 billion); SBC Communications Inc. ($1.9 billion); Daimler Chrysler ($1.8 billion); Ford Motor Co. ($1.6 billion); Verizon Communications Inc. ($1.6 billion); The Walt Disney Co. ($1.4 billion); Johnson & Johnson ($1.2 billion); and News Corp. ($1.1 billion).

Spending Scorecard
Ad Spending by Media: 2004 vs. 2003
Media 2004 2003 Change
Network TV $22.5 $23 6.7%
Spot TV $17.3 $15.5 11.7%
Cable TV $14.2 $12.5 13.8%
Internet $7.4 $6.1 21.4%
Syndication $3.9 $3.3 15.8%
Source: TNS Media Intelligence
Spending: In Billions

September