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TNS Media Intelligence Forecasts 5.4 Percent Increase in U.S. Advertising Spending for 2006

Posted on: Wednesday, 18 January 2006, 09:00 CST

Total U.S. advertising spending is expected to increase 5.4 percent in 2006 to $152.3 billion, according to the full-year forecast released today by TNS Media Intelligence, the leading provider of strategic advertising and marketing information. This solid increase follows the estimated growth of 3.0 percent in 2005, as the U.S. economy continues on a stable course.

While TNS Media Intelligence is forecasting 5.0 percent growth for the first half of 2006, advertising expenditures are expected to increase by 5.7 percent in the second half of the year.

"We anticipate advertising spending to continue on a steady track in 2006 due to several major events, including the Winter Olympics in the first quarter and the surge of political advertising for the mid-term 2006 elections, which is set to surpass the record levels of 2004," said Steven J. Fredericks, President and Chief Executive Officer, TNS Media Intelligence. "Additionally, steady economic growth in 2006 will boost CEO confidence, translating into increased rates of total advertising spending. All leading categories of media will register growth in advertising spending, with Hispanic Network Television, The Internet and Cable Network Television showing the strongest absolute gains."

------------------------------------------------------- 2006 TOTAL AD EXPENDITURES(1) ------------------------------------------------------- QUARTERLY GROWTH ESTIMATES ------------------------------------------------------- ------------------------------------------------------- TIME PERIOD % CHANGE vs. 2005 ------------------------------------------------------- FIRST HALF 2006 5.0% ------------------------------------------------------- First Quarter 2006 5.5% ------------------------------------------------------- Second Quarter 2006 4.6% ------------------------------------------------------- SECOND HALF 2006 5.7% ------------------------------------------------------- Third Quarter 2006 4.9% ------------------------------------------------------- Fourth Quarter 2006 6.4% ------------------------------------------------------- FULL YEAR 2006 5.4% ------------------------------------------------------- Source: TNS Media Intelligence (1) Defined as all TNS MI measured media, including: Network TV; Spot TV; Cable TV; Syndication TV; Hispanic Network TV; Consumer Magazines; Sunday Magazines; Local Magazines; Hispanic Magazines; Business-to-Business Magazines); Local Newspapers; National Newspapers; Hispanic Newspapers; Network Radio; Spot Radio; Local Radio; Internet; and Outdoor. ------------------------------------------------------- ------------------------------------------------------- 2006 GROWTH ESTIMATES BY MEDIA ------------------------------------------------------ ------------------------------------------------------ % CHANGE vs. 2005 ------------------------------------------------------ Hispanic Network Television 10.4% ------------------------------------------------------ Internet(1) 9.1% ------------------------------------------------------ Cable Network Television 8.4% ------------------------------------------------------ Outdoor 7.2% ------------------------------------------------------ Spot TV 7.0% ------------------------------------------------------ Syndication Television 4.8% ------------------------------------------------------ Network Television 4.5% ------------------------------------------------------ Newspapers 4.3% ------------------------------------------------------ Consumer & Sunday Magazines 4.0% ------------------------------------------------------ Radio 3.6% ------------------------------------------------------ Business-To-Business Magazines 1.0% ------------------------------------------------------ Source: TNS Media Intelligence (1) Internet estimates do not include paid search advertising. ------------------------------------------------------

Hispanic Network Television, The Internet and Cable Network Television are forecast to turn in the largest gains during 2006. However, 2006 performance for each of these media is projected to lag 2005 levels. The biennial cycle of Olympics and elections will help lift spending growth for Network Television and Spot Television above 2005 levels.

TNS Media Intelligence projects that Television media will achieve a 43.7% share of total measured ad spend in 2006, followed by Magazines (20.5%); Newspapers (19.9%); Radio (7.5%); Internet (6.0%); and Outdoor (2.4%).

About TNS Media Intelligence

TNS Media Intelligence is the leading provider of strategic advertising intelligence to advertising agencies, advertisers, and media properties. The company's tracking technologies collect advertising expenditure and occurrence data, as well as select creative executions, for more than 2.2 million brands across 20 media. Established in 23 countries with more than 16,000 customers, TNS MI is part of the TNS Group, ranked #2 worldwide in marketing information and the world's largest custom research company. The U.S. headquarters are in New York City with sales locations in major markets throughout the United States.

About TNS

TNS is a market information group. We are the world's largest custom research company and a leading provider of social and political polling. We are also a major supplier of consumer panel, TV audience measurement and media intelligence services.

TNS operates a global network spanning 70 countries and employs over 13,000 people. We provide market information and measurement, together with insights and analysis, to local and multinational organizations.

We combine our specialist sector knowledge with expertise in the areas of new product development, motivational research, brand and advertising research and stakeholder management to bring our clients up-to-the minute, internationally consistent information.

We think differently to help our clients build competitive advantage, making TNS the sixth sense of business.

www.tns-global.com

Source: Business Wire

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