TNS/CMR Adjust 2004 Ad Spending… Spanish Down.

Advertising spending is expected to rise 9.3 percent to $140.3 billion, according to the mid-year forecast released TNS Media Intelligence/CMR.

“Advertising spending during the first quarter of 2004 was very strong, as total expenditures increased 9.6 percent to $31.5 billion as compared to the same period in 2003. This robust ad growth is the beginning of what we forecast to be an extremely strong year,” said Steven Fredericks, president and CEO of TNS Media Intelligence/CMR. “With the upswing in the economy, the elections and the Olympics, 2004 is shaping up to be a very good year overall.”

The first half of 2004 is forecasted to show a growth rate of 9.4 percent, with a growth rate of 9.2 percent expected for the second half of the year. “Other key trends that will impact the healthy advertising outlook include strong growth in the leading ad categories and growth in new brand spending,” noted Steven Fredericks.

Two of the key drivers for the year include the political races and the Olympics. Estimates are that political spending will total $1.5 billion in 2004, with $1.3 billion being spent on the elections and $200 million being spent on issue-related ads. Olympic spending will contribute an incremental $850 million, an increase of $100 million over ad spending surrounding the 2000 Sydney games. Overall, these two areas will make significant contributions to third quarter spending.

Traditionally, the Spanish TV category has show double digit growth from year to year, this year a 7% growth is projected.

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