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More Shifts in Media Advertising Expenditure

Total advertising expenditures in the first half of 2007 slipped by 0.3 percent to $72.59 billion versus the same period in 2006, according to data released by TNS Media Intelligence.

"For the first time since 2001, media advertising expenditures have declined for two consecutive quarters," said Steven Fredericks, president and CEO of TNS Media Intelligence.

"While the protracted downturn in automotive spending has been a prime contributor, the overall results reflect weakness across a wide range of industries and advertisers. Given the uncertainties about near-term economic growth and consumer spending, we expect core ad spending will continue to face challenges during the second half of the year."

Internet display advertising maintained its growth leadership position, registering a 17.7 percent increase to $5.52 billion in expenditures. Consumer magazines posted a 6.9 percent gain to $11.50 billion in advertising. Outdoor expenditures were up 3.6 percent to $1.90 billion and Cable TV followed with a 2.8 percent increase to $8.38 billion.

Broadcast TV media continued to experience weakness in the second quarter and turned in significant half-year declines. Network TV expenditures fell 3.6 percent to $11.84 billion, while ad spending on Spot TV dropped 5.4 percent to $7.29 billion. Syndication TV was down 5.3 percent to $2.00 billion.

Newspaper and Radio media also saw widening losses during the second quarter. For the half-year period, ad spending in Local Newspapers plunged 5.7 percent to $11.09 billion on a reduction of 4.7 percent in space sold. Marketers lowered their Radio advertising budgets by 2.7 percent, to a total of $5.14 billion.

While total ad expenditures declined by 0.3 percent, there was unusually wide variation around this average from individual media types. As a direct result, changes in share of spending by media type were more pronounced than normal.

Internet display advertising jumped to 7.6 percent of total expenditures, up from 6.4 percent a year ago. Magazines gained 0.9 share points and finished the period at 20.0 percent of ad spending. Newspapers lost one full share point and slipped to 17.8 percent of total expenditures. National Television and Local Television each lost share but still accounted for a combined 43.6 percent of all expenditures.

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