Ad Spending in Newspapers Falls Off Sharply, Down 6.1% in Q1

By: E&P Staff Local advertisers decreased their spending in newspapers by 6.1% to $5.5 billion in Q1, said a new report from TNS Media Intelligence.

Meanwhile, advertising grew in other media for the same period including spot TV, up 6.4%; consumer magazines, up 5.9%; and the Internet, which was the biggest media gainer, up 19.4% to $2.3 billion.

Spending in national newspapers was up 6.7% to $855 million. Advertising in Sunday magazines was up 10% to $438 million. It also increased with Free Standing Inserts (FSI) up 18.5% to $475 million.

Overall for Q1, total ad spending increased 5.2% to $34.9 billion. That increase fell a hair short of the marketing research firm?s estimate of 5.5%.

?The recent trend line in share of spending by major media segment has continued into 2006, while spending within key category segments displayed more volatility than normal,? Steven Fredericks, president and CEO of TNS, said in a statement.

TNS noted that newspapers saw a decline because three key categories -- retail, automotive, and telecommunications -- experienced decreases in ad spending.

The overall top three advertisers in the quarter are the following: Procter & Gamble with $794 million in spending, up 13.8%; General Motors Corp. with $706 million in spending, down 1.9%; and AT&T with $625 million, up 51%.