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Major advertisers are moving their money away from traditional media, according to TNS Media Intelligence, an ad-tracking company. The 50 largest advertisers in the United States reduced their spending on so-called 'measured' media like television, print, and Internet display ads by 1.5 percent in 2006. Spending on ads in the United States rose by 4.1 percent, overall, during the same period. Some of the decrease has been attributed to general cutbacks in ad spending by the large marketers, but industry observers believe that it also indicates that companies are reallocating a portion of their advertising budgets to new Internet venues that are not measured by TNS. These include paid-search advertising, social networking, and online video. The report from TNS indicated that growth in spending for advertising in traditional media, especially newspapers and radio, continued its dramatic slowdown, while spending for Internet display ads is growing. The report also emphasized a significant reduction in advertising growth at cable channels. The most interesting element of the report involved the performance of Spanish-language television, newspapers, and magazines. These showed much higher growth rates, indicating that advertisers have recognized the value of Spanish-speaking consumers. The TNS figures in the report are not surprising, but confirm broader trends.
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Information Sources, Inc.
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