Ad Spending Rose 5.1% in 2003

By: Katy Bachman (Mediaweek) Despite a difficult year defined by the war in Iraq, advertising spending in 2003 rose 5.1% over 2002, according to Nielsen Monitor-Plus. Based on preliminary figures released Thursday, the ad economy rose steadily each quarter, up 1.5% in the first, 3.6% in the second, 5.7% in the third, leading up to a 7.4% increase in the fourth.

A division of Nielsen Media Research, Nielsen Monitor-Plus tracks advertising expenditures across 12 media categories. Local magazines posted the heftiest gain last year, up 20.5%, followed by local newspapers (10%), national magazines (9.4%), syndicated TV (6.9%), outdoor (6.4%), spot TV (5.9%), Spanish-language TV (4.9%), cable TV (3.4%), national newspapers (2.5%), network radio (1.6%), spot radio (1.5%) and network TV (0.2%).

The top 10 advertisers spent nearly $15 billion in 2003, an increase of 8.2% over 2002. Of the 10, seven advertisers increased ad budgets, including top spender Procter & Gamble, which upped its spending by 25.9% to promote many of its oral hygiene products, including Crest White Strips, Crest Spin Brush Electric Toothbrush and Crest Whitening Expressions Toothpaste. The packaged-goods leader also used advertising to support several new product introductions, including Cover Girl Wetslicks Lipstick and Mr. Clean Magic Eraser.

The three advertisers that decreased spending were all automotive companies: General Motors (down 8.4%), DaimlerChrysler AG (down 4.8%) and Ford Motor Co. (down 5%).

Not all automakers cut budgets. Nissan's budget increase of 33.9% last year was the largest among the top 10, the first time the automaker made the top 10 ranks. And while automakers may have reduced budgets, local auto dealers and auto dealer associations increased spending by 8.3 and 52.4%, respectively.

Nielsen Media Research is owned by VNU, the parent company of this Web site.