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U.S. Ad Spending Down 0.6 Percent in Q1

Advertising spending for the first quarter of 2007 in the U.S. was down just 0.6 percent compared with the first quarter of 2006, with gains in some media categories and declines in others, according to preliminary figures released last week by Nielsen Monitor-Plus, reports MarketingCharts.

Internet advertising expenditures continue to grow steadily, with an increase of 31.9 percent in the first three months. National Magazines (6.5 percent), Spanish-Language Television (4.0 percent) and Spot TV Markets 101-210 (4.1 percent) also reported growth, while Network TV dropped by 8.5 percent, Nielsen reported.

“Last year’s Torino Olympics in February 2006 contributed to a higher than typical first quarter, resulting in a decline in TV ad spend for Q1 2007. If you removed the Olympics ad spend from the Network numbers last year, those numbers would actually be up this quarter,” said Brian Lane, SVP of client strategy and product development for Nielsen Monitor-Plus.

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Additional data released by Nielsen Monitor-Plus:

Advertiser Spending

Advertising spending for the top 10 companies for the first quarter 2007 reached $4 billion, down 15 percent from the same time period in 2006.

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Category Spending

Spending for the 10 largest categories reached $9.8 billion in the first quarter of this year, 8.2 percent less than the same period last year.

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Product Placement

Nielsen Product Placement Service reports an increased number of product placement occurrences in prime-time broadcast network programming for Q1 2007, based on its Top 10 Programs ranking.

The Top 10 programs featured 8,893 occurrences, compared with 8,793 occurrences for the same time period last year.

The Top 10 brands that featured product placements for 1Q07 accounted for 4,253 occurrences - a slight drop from 1Q06, when 4,371 brands were reported.

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