Ad Spending Seen 'Challenged' for Rest of 2007


U.S. advertising spending is seen "challenged" for the rest of the year after slipping 0.3 percent in the first half to $72.59 billion, according to a report by TNS Media Intelligence issued Tuesday.

It was the first time U.S, advertising spending has fallen for two consecutive quarters since 2001, the report said, and reflected an overall weakness across economic sectors.

"While the protracted downturn in automotive spending has been a prime contributor, the overall results reflect weakness across a wide range of industries and advertisers," TNS Chief Executive and President Steven Fredericks said in a statement.

"Given the uncertainties about near-term economic growth and consumer spending, we expect core ad spending will continue to face challenges during the second half of the year."

Television ad spending dragged the market, falling 2.4 percent to $31.63 billion, offsetting ad spending gains in other sectors.

Newspaper ad spending fell 5.8 percent to $12.92 billion.

Radio ad spending fell 2.7 percent $5.14 billion.

The declines offset gains from Internet display ad spending, which rose 17.7 percent to $5.52 billion. Magazine ad spending rose 4.6 percent and outdoor spending rose 3.6 percent to $1.9 billion.