U.S. Ad spending increases 3.8% in third quarter

Jeff King, managing director of Nielsen Monitor-Plus, says the company isn't in the business of predicting the future. But with a third quarter of growth in ad spending in 2002, that's a good harbinger of next year.

Showing increases were local newspaper display ads (9.5%), network TV (7.9%), network radio (7.3%), Hispanic TV (4.3%), Spot TV (3.2%), Cable TV (3%), National Magazines (2.2%) and Spot Radio (2.1%). Internet reported a 1% drop in ad spending. Syndicated TV fell 8.7% and national newspapers dropped 9.3%.

Another study by Global Insight Inc predicts a 6% increase by the end of 2003. Global Insight principal John Rose said the economic recovery will be soft in the first half of 2003 and "the rest of the year won't be gangbusters either."

Between now and 2006, radio will see a 10% annual increase in ad spending. Cable TV will see a 7% annual rise through 2006 and the Internet will see a 16% increase, Global Insight said. But don't go celebrating just yet; Rose said the increase will only bring the new media's piece of the overall ad market from today's 2% to about 3%.