US Adspend Down 0.5% Year On Year
US advertising spending for the first half of 2007 was down 0.5% year on year, with internet spending showing the strongest performance (+23.6%) of any category, according to a new report from the Nielsen Company.
Brian Lane, senior vice president of client strategy & product development for Nielsen Monitor-Plus, said: “Even in this soft market outdoor ad spending continues to show strength. This traditional medium has embraced technology and is offering more and more digital and interactive advertising opportunities.
“National magazine ad spending is also on an upswing with increased rate card ad revenue reported for the first half of 2007.”
Advertising spending across monitored media for the top 10 companies in the first half of 2007 reached $8.3 billion, down 7.3% from the same time period in 2006. Seven out of the ten advertisers decreased budgets.
Spending for the 10 largest categories reached $20.8 billion in the first half, 2% less than the same period last year.
Most product categories have decreased spending, with the exception of pharmaceuticals, wireless telephone services, and direct response products. The top category in terms of total dollars, automotive, also had the greatest dollar and percent decline (-$671 million; -10%).
| Media Category | First Half 2006 vs. First Half 2007 |
| % Change | |
| Internet* | 23.20% |
| National Magazines | 8.40% |
| Nat’l Sunday Supplements | 6.50% |
| Outdoor | 5.10% |
| Spot TV Markets 101-210 | 3.20% |
| Spanish-Language TV | 0.20% |
| Cable TV | -0.30% |
| Spot Radio | -1.80% |
| Network TV | -3.80% |
| Spot TV Markets 1-100 | -4.60% |
| Local Sunday Supplements | -4.70% |
| Local Magazines | -5.20% |
| B-to-B Magazines | -5.70% |
| Nat’l Newspaper | -5.90% |
| Local Newspaper | -8.00% |
| Network Radio | -8.50% |
| Total Advertising Spending | -0.50% |
| Source: Nielsen Monitor-Plus | |
| * Internet data provided by Nielsen//NetRatings AdRelevance | |
| Notes: | |
| – Nielsen//NetRatings AdRelevance service estimated online advertising expenditures account for CPM-based image-based advertising. All reported estimated expenditures and impressions do not account for the following placement types: text only, paid fee services, performance-based campaigns, compound ads, sponsorships, barters, in-stream (“pre-rolls”) players, messenger applications, partnership advertising, promotions and email campaigns. AdRelevance currently does not report estimated spending for paid search advertising. Above data does not include any house advertising activity. | |
| – Newspaper reflects display ads only | |
| – Coupon and Syndicated TV data was excluded due to recent methodology changes | |
A recent eMarketer report US advertisers are increasingly shifting ad dollars to social networking websites away from portal sites (see US Ad Dollars Moving To Social Network Websites).
Meanwhile, the Jack Myers Business Report forecast that US adspend on cinema, mobile, videogame, branded entertainment, satellite radio and custom publishing advertising will grow a projected 20.3% in 2007 (see US Adspend To Grow).