2003 Online Ad Spending to Rise

By: Ann M. Mack (Adweek.com) Internet ad spending is expected to rise 7.4% this year, according to mid-year estimates from TNS Media Intelligence/CMR.

The New York-based company that tracks ad spending in major media estimated that overall ad spending for the year would increase 4.3% to $124.7 billion.

"The first quarter of the year came in very strong at 4.9% with [overall ad] spending totaling $28.4 billion -- this robust spending is likely a precursor for the rest of the year," TNS Media Intelligence/CMR president and CEO Steven Fredericks said in a statement.

For the first quarter, online ad revenue totaled $1.5 billion, up 12% from $1.4 billion during the year-ago period. The Q1 numbers represented a rebound for the Internet sector, which experienced a 12% decline to $5.7 billion in ad spending for full-year 2002, according to TNS Media Intelligence/CMR

The media categories ranking above the Internet, in terms of projected 2003 ad spending growth, included Spanish-language TV (16.9%) and syndication (9.6%). All other media categories are expected to record increases: cable network TV (7.2%), consumer/Sunday magazines (5.4%), radio (4.9%), business-to-business magazines (3.6%), outdoor (3.3%), network TV (2.8%), newspaper (2.1%), and spot TV (1.8%).

TNS Media Intelligence/CMR attributed increased spending to the strong upfront season, the continued rise of Hispanic media spending, the active political environment and the steady growth in new brand spending.