Though the path toward recovery has been slower in the US than in most regional ad markets, the trend is positive: US advertisers spent an estimated $54 billion during the first half of 2010, up 3.8% from the same period a year earlier, driven by discretionary ad spending categories such as automotive and department stores, according to data from The Nielsen Company.

Growth in the US ad market, which faced six straight quarters of declines in spending, reflects a modest improvement in consumer confidence in the first half of the year, as advertisers sought to highlight value deals and increase promotions in hopes of spurring consumer spending.

US Ad Spend by Sector: Automotive Sector Leads

The top 10 product categories grew 3.4% on average in the first half of 2010 over 1H09 levels. Among them, automotive registered the highest gain (26.9%), followed by auto insurance (22.6%). All other categories, except department stores (4.9%) and restaurants (2.5%) declined in 1H10.

Auto advertising was driven largely by increased spending by General Motors, up 73% over 1H09. Ford and Toyota also grew their ad spending 15% and 22%, respectively. An 82% increase for UAW Health Care Trust contributed to first-half growth in the auto insurance category.

US Ad Spend by Media Type: Television Is Still King

US TV (network, cable, syndication, spot, Spanish Language network and Spanish Language cable) continued to dominate, accounting for $33.8 billion in advertising in 1H10, up 6% over 1H09 levels. Spanish language network TV and Cable TV registered the biggest gains, up 24% and 13%, respectively, over 1H09 levels.

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US Ad Market Strengthens, Auto Sector Rebounds

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