Ad Spending in U.S. Hurt by Auto Cutbacks
From Reuters
U.S. advertising spending grew more slowly than expected in the first quarter, hurt by cutbacks in the auto industry as it took steps to reverse huge losses, according to tracking firm TNS Media Intelligence.
Ad spending rose 5.2% in the first three months of the year to $34.9 billion, trailing a forecast of 5.5% growth, according to TNS, which projects 5.4% growth for all of 2006.
Spending by automakers and car dealerships account for more than 10% of U.S. ad revenue.
GM’s advertising fell 2% to $706 million and Ford cut spending more than 4% to $410 million.
