Spending for U.S. online advertising, excluding search marketing, continued to grow in the first quarter, according to TNS Media Intelligence figures released yesterday, ClickZ reports. Web adspend increased 8.2 percent over the first quarter of 2004, reaching $1.9 billion, or 5.7 percent of total U.S. adspend of $33.5 billion in the first quarter of 2005. TNS has predicted an 11.2 percent increase in interactive media spending for the year.
The $33.5 billion in total ad spending constituted a 4.4 percent increase over the first quarter of 2004 - the smallest gain in measured-media spending since the end of 2003, AdAge reports; however, TNS noted that spending continues to increase at a faster rate than gross domestic product, as it has in 10 of the last 11 quarters. TNS figures, based on rate cards, provide year-over-year trends and share shifts - and aren't intended to reflect actual revenue, AdAge explains.
Online was among the high-growth media, though others grew faster - including local magazines (26.2 percent) and cable television (18.2 percent). Only two recorded spending decreases: spot TV (down 4.8 percent) and network radio (down 3.2 percent). In the top marketing categories, domestic auto marketers spent the most, with $2.1 billion (up 8 percent), closely followed by non-domestic auto's $2 billion (down 5 percent). The biggest growth category was direct response, up from $1.2 billion to $1.5 billion.