Telecoms Spend Big To Snag Users

Telecom companies – actually wireless companies – are spending billions of dollars in their bid to attract new customers (or even switchers) according to data collected by TNS Media Intelligence for Advertising Age. )

Collectively, Verizon ($1.72 billion), Cingular ($1.31 billion) and Sprint ($995 million) spent a whopping $4 billion on advertising. In fact their spending was up a whopping 15.9%. Vonage was the 26th largest spender in 2005, doling out $413.5 million, up 552.6% from 2004 when the company spent mere $63.4 million. Well, now that the IPO is done, we should expect some decline in that drunken spending! (Of course there is a cheaper, easier way of attracting customers – Spyware.)

Who do you think will be the big spender from telecoms next year? My guess is AT&T, and all those MVNOs who will blow throw megamillions of investors money. And then they say times are tough on Madison Avenue 😉

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