The top 10 advertisers of 2006 spent a combined $18.73 bln, a reduction of 2.8% versus the prior year period as robust gains from leading telecommunications companies failed to offset automotive category cutbacks. Across the top 50 companies, which are a more diversified group of marketers, expenditures were down 1.5%. Beyond the top 50, a segment that accounts for approximately two-thirds of the ad market, spending advanced a crisp 6.9% during 2006. Procter & Gamble (P&G) maintained its spot atop the rankings with $3.34 bln in spending, up 3.3% versus 2006. In contrast, Johnson & Johnson reduced its advertising budgets by 19.8% and fell from the fourth position to ninth position in the rankings. General Motors (GM) barely held onto the number two spot and finished the year with $2.29 bln in spending, a reduction of $710 mln or 23.7% decrease versus 2005. To put this in perspective, only 29 advertisers spent more than $710 mln in 2006. A year ago, GM was the second largest advertiser behind P&G by just $220 mln. The gap between the two advertisers is now more than $1 bln. Elsewhere in the auto industry, DaimlerChrysler reduced its advertising by 10.7%, to $1.42 bln while Ford Motor Company, despite flat budgets in the fourth Q, increased its full year outlays by 8.5% to $1.70 bln. Telecommunications companies continued their vigorous spending with AT&T up 30.8% to $2.20 bln and Verizon Communications up 10.4% to $1.94 bln.
| Biggest spenders in advertising in 2006 | |||
| Company | 2006 spending | 2005 spending | Growth, YTY |
| PROCTER & GAMBLE | $3,338.7 | $3,230.9 | 3.3% |
| GENERAL MOTORS | $2,294.8 | $3,008.0 | -23.7% |
| AT&T INC | $2,203.8 | $1,684.7 | 30.8% |
| VERIZON | $1,944.2 | $1,761.6 | 10.4% |
| TIME WARNER INC | $1,824.6 | $2,073.5 | -12.0% |
| FORD MOTOR CO | $1,699.5 | $1,567.0 | 8.5% |
| WALT DISNEY CO | $1,430.4 | $1,418.3 | 0.9% |
| DAIMLERCHRYSLER | $1,421.4 | $1,591.5 | -10.7% |
| JOHNSON & JOHNSON | $1,302.8 | $1,623.4 | -19.8% |
| NEWS CORP | $1,266.8 | $1,298.5 | -2.4% |
| TOTAL | $18,727.0 | $19,257.2 | -2.8% |
| Source: TNS Media Intelligence | |||