US measured adspend declined 0.3% year on year in May, the first comparable period monthly decline since May 2002, according to new data from TNS Media Intelligence.
US gross domestic product dropped last quarter to 2.5% from 5.6% in Q1 which could spell worrying times ahead for the advertising industry.
Adspend in the US has risen year on year every month since May 2002, except for August 2005, a fall which reflects the boost August 2004 received from spending on the Olympics.
However, there are no such explanations for this May’s drop. Spending fell 0.3% to $12.7 billion, worsened by a big decline in local newspapers of 9.1% and a lesser one in network television of 2.8%.
However, internet advertising continued to do well, rising by 18.6% while Spanish language television networks also recorded a big rise, of 17%. As a total, measured adspending between January and May of this year rose 3.9%.
Universal McCann recently released a report that said it expects US advertising to grow by 5.6% this year (see US Adspend Expected To Grow 5.6% This Year).
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