A September report from TNS Media Intelligence* has revealed that national advertising expenditures overall were up 4.5 percent in the first half of 2005 over the same period last year. When viewed with a first quarter increase of 4.4 percent, these figures indicate “sustained momentum” in advertising spending, the report said.

Cable television contributed a 15.3 percent increase, which the report attributed to higher unit rates, an increase in commercial time and larger audiences. Internet display advertising showed a 9.4 percent increase, while an increase of 9.3 percent was reported for outdoor. Other categories showing significant increased spending were consumer magazines (9.1 percent) and network TV (4.3 percent).

With ad spending up nationally, was there a corresponding increase on the local level? Representatives of cable TV and network stations reported that ad sales are up over 2004.
The networks, which provide advertisers with reach, attributed this to the influx of new retail, translating to increased sales. In the case of cable, representatives attributed the increase to a realization on the part of the customer that cable provides a cost-effective way to achieve frequency. Discussions with local radio stations received a mix of positive and negative responses, but where sales were up, the reason seemed to be, again, the influx of new retail.

MillerWhite, LLC advises its clients to maintain the proper balance of reach and frequency, achieving this for its clients by utilizing Arbitron and Nielsen ratings to maximize media spending. Further, MillerWhite will evaluate spending in all media categories including print and interactive media, comparing the advantages and disadvantages of each as they relate to the client’s audience, message and overall goals, as well as other marketing tactics that are in place, to assure the proper media mix.

*TNS Media Intelligence, with headquarters in New York City, provides strategic advertising and marketing information.

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