New York - While overall U.S. ad spending fell 0.3% during the first half of 2007, compared with the same period a year ago, the Internet advertising sector led all others with a 17.7% increase, to $5.5 billion, according to a report from TNS Media Intelligence.

Overall U.S. ad spending totaled $72.59 billion in the first half of the year, and the figure represented the first time since 2001 that ad spending has declined in two consecutive quarters.

Behind Internet spending, other sectors posting gains included consumer magazines, up 6.9% to $11.5 billion; outdoor ads, up 3.6% to $1.9 billion; and cable TV, which grew 2.8% to $8.4 billion.

Seeing declines were network TV ad spending, which fell 3.6%, to $11.8 billion; national newspapers, down 6.4% to $1.7 billion; and national spot radio, down 5.3% to $1.2 billion.

"For the first time since 2001, media advertising expenditures have declined for two consecutive quarters," said TNS president and CEO Steven Fredericks.

"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. 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."

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