US advertising spending grew 5.9% last year, according to preliminary figures released Friday by Nielsen Monitor-Plus. Local newspapers were up by 9.4%, and national magazines advertising sales increased by 4.9%. However, spending on national newspapers decreased by 7.1%. Interestingly, the Hispanic TV category had the most growth, with a 10.2% gain. According to Portada's analysis of fourth quarter 2002 results of publicly traded newspaper companies, national advertising was the strongest category, with double digit growth figures compared to the prior year period.
Movies, entertainment, hi-tech (wireless), auto and financial were the sectors that purchased the most national advertising. Retail advertising was lackluster with department stores, food and furniture slightly positive and electronics dropping. Classifieds grew in the low single digits. Help Wanted advertising diminished significantly during the fourth quarter of 2002.
Weekly magazine ad-pages rose by 4.9% in January/February 2003. Biweekly magazines grew by 22.9%, and monthlies by 11.04%. Bimonthly magazines increased by an amazing 27.2%. Last years ad-page count was negatively affected by the post-September 11 advertising slump.
…an even better year to come?
Most large newspaper publishers expect advertising and revenues to grow between 3% and 5% in 2003. They expect the price of newsprint to rise to between 5% and 10% this year. According to the Publishers Information Bureau (PIB), consumer magazine publishers saw a substantial increase of their ad-pages in the first two months of 2002.