Top industries spending on advertising in 2006

Telecommunications was the top spending category in 2006 at $9.43 bln, finishing at a gain of 10.3%. Nearly half of the sector increase was attributable to AT&T. The intense competition in this arena is reflected in the double-digit growth rates of ad budgets at nearly all the key companies including AT&T, Verizon, Comcast, Deutsche Telekom and Vonage. Foreign Auto claimed the second spot at $8.73 bln, a drop of 1.2% from 2005. Higher levels of factory and dealer ad spend behind the Toyota brand were offset by large reductions at Nissan and Volkswagen. Domestic Auto expenditures tumbled 11.7% to $7.62 bln due to General Motors and DaimlerChrysler cutbacks, pushing the category down to the number six position. Automotive advertising has now declined for six consecutive Qs. The highest growth rate among the top 10 categories was registered by Pharmaceuticals which jumped 13.8% to $5.29 bln. This was due to the strength of Merck?s marketing launch of an HPV vaccine and increased advertising activity at Pfizer and Astrazeneca. Local Services & Amusements continued to expand, up 10.3% to $8.69 bln. This segment is a diversified mix of small advertisers outside the Top 500 rankings whose collective size and multi-media budgets have made it an important contributor to the overall advertising economy.

Top industries spending on advertising in 2006
Category 2006 spending 2005 spending Growth, YTY
TELECOM $9,431.1 $8,550.5 10.3%
AUTO, NON-DOMESTIC $8,726.7 $8,832.8 -1.2%
LOCAL SERVICES $8,687.0 $7,879.2 10.3%
FINANCIAL SERVICES $8,681.8 $8,508.8 2.0%
MISC RETAIL10 $8,322.9 $8,258.0 0.8%
AUTO, DOMESTIC $7,615.2 $8,625.1 -11.7%
DIRECT RESPONSE $6,376.1 $6,087.0 4.7%
PERSONAL CARE PDTS $5,717.2 $5,654.1 1.1%
TRAVEL & TOURISM $5,406.4 $5,486.1 -1.5%
PHARMACEUTICALS $5,285.4 $4,645.8 13.8%
Source: TNS Media Intelligence