US Ad Expenditures Reach 0.6% In Q1
Total US measured advertising expenditures in the opening quarter of 2008 increased by 0.6% as compared to the same period in 2007, according to new data from TNS media intelligence.
Growth leadership, on a percentage basis, was strongest among smaller media types. Sunday Magazines (up 17.1%) and Network Radio (up 12%) were boosted by an extra week in their reporting quarters. Syndication TV expenditures surged 11.2%, aided by more hours of programming and limited exposure to the writer’s strike.
Internet display advertising fell back from its double-digit growth rates of last year but still achieved a healthy gain of 8.5%. Cable TV (up 4.1%) and Outdoor (up 2.5%) also experienced some slowing compared to recent periods.
Elsewhere, network TV expenditures increased 0.8%, its best quarterly performance in two full years. Consumer magazine spending was up just 0.2% as higher budgets from food advertisers were neutralized by reduced commitments from direct response and pharmaceutical marketers. Spot TV expenditures slipped 2.4%, despite easy comparisons against 2007 levels. The newspaper sector, beset by the continuing weakness in automotive and real estate, experienced a 5.2% decline in total spending.
| Percent Change in Measured Ad Spending: Q1 2008 vs. Q1 2007 (1) | |
| MEDIA SECTOR | % Change |
| – Media Type | |
| (shown in rank order of 2008 spending) | |
| TELEVISION MEDIA | 1.70% |
| Network TV | 0.80% |
| Cable TV | 4.10% |
| Spot TV2 | -2.40% |
| Syndication – National | 11.20% |
| Spanish Language TV | 4.40% |
| MAGAZINE MEDIA3 | 0.80% |
| Consumer Magazines | 0.20% |
| B-to-B Magazines | -3.20% |
| Local Magazines | -2.10% |
| Sunday Magazines | 17.10% |
| Spanish Language Magazines | 14.20% |
| NEWSPAPER MEDIA | -5.20% |
| Local Newspapers | -5.00% |
| National Newspapers | -6.20% |
| Spanish Language Newspapers | -5.30% |
| INTERNET4 | 8.50% |
| RADIO MEDIA | -4.50% |
| Network Radio | 12.00% |
| National Spot Radio | -3.10% |
| Local Radio5 | -7.20% |
| OUTDOOR | 2.50% |
| FSIs6 | 8.80% |
| TOTAL | 0.60% |
| Source: TNS media intelligence | |
| 1. Figures are based on the TNS media intelligence Stradegy multimedia ad expenditure database across all TNS MI measured media, including: Network TV (6 networks); Spot TV (101 markets); Cable TV (52 networks); Syndication TV; Hispanic Network TV; Consumer (PIB) Magazines (220 publications);Sunday Magazines (6 publications); Local Magazines (27 publications); Hispanic Magazines (26 publications); Business-to-Business Magazines (352 publications); Local Newspapers (144 publications); National Newspapers (3 publications); Hispanic Newspapers (55 publications); Network Radio; Spot Radio; Local Radio; Internet; and Outdoor. Figures do not include public service announcement (PSA) data. | |
| 2. Spot TV figures do not include Hispanic Spot TV data. | |
| 3. Magazine media includes Publishers Information Bureau (PIB) data. | |
| 4. Internet figures are based on display advertising only. | |
| 5. Local Radio includes expenditures for 33 markets in the U.S. | |
| 6. FSI data represents distribution costs only. | |
The top 10 advertisers in the first quarter of 2008 spent a combined total of $4,425.5 million, a 1.6% increase from last year. Across the top 50 companies, a more diversified group of marketers representing nearly one-third of total ad expenditures, spending fell by 1.4%.
Procter & Gamble maintained its position as the largest advertiser with $836.4 million in spending, a robust 15.8% increase versus a year ago. The company aggressively expanded advertising support across its portfolios of personal care and household cleaning products. PepsiCo vaulted into the Top 10, posting a 39.5% increase to $334.4 million on higher spending for the Gatorade brand line.
Among the auto manufacturers, General Motors hiked its media budgets by 12.6%, to $532.1 million. Model redesigns for the Chevrolet Malibu and Cadillac CTS triggered much of the incremental spending. By contrast, Ford Motor Company slashed its ad expenditures 31.0 percent, to $291.1 million with the reductions spread across its auto and truck divisions.
Leading telecommunication companies turned in mixed results. Verizon Communications spent $531.1 million in the period, a gain of 10.4 percent. AT&T lowered its advertising budgets by 14.6 percent to $468.1 million.
| Top Ten Advertising Categories: Q1 2008 vs. Q1 2007 | |||
| CATEGORY | JAN-MAR 2008 (Millions) | JAN-MAR 2007 (Millions) | % CHANGE |
| Financial Service | $2,235.5 | $2,228.6 | 0.30% |
| Local Services & Amusements | $2,207.9 | $2,116.4 | 4.30% |
| Telecom | $2,053.8 | $2,220.2 | -7.50% |
| Direct Response | $1,912.0 | $1,749.4 | 9.30% |
| Auto, Non-Domestic | $1,764.7 | $1,905.6 | -7.40% |
| Misc Retail1 | $1,727.9 | $1,840.6 | -6.10% |
| Auto, Domestic | $1,445.5 | $1,721.5 | -16.00% |
| Restaurants | $1,367.8 | $1,325.0 | 3.20% |
| Travel & Tourism | $1,366.1 | $1,324.6 | 3.10% |
| Personal Care Products | $1,318.1 | $1,293.2 | 1.90% |
| TOTAL | $17,399.4 | $17,725.1 | -1.80% |
| Source: TNS media intelligence | |||
| Note: Figures do not include FSI or PSA activity. The sum of the individual categories may differ from the total due to rounding. | |||
| 1 Misc Retail does not include these retail segments: Department Stores, Food Stores; Home Furnishing & Appliance Stores. | |||
The Top 10 advertising categories in the first quarter of 2008 spent an aggregate $17,399.4 million, down 1.8% from a year ago. Financial services remained the top category at $2,235.5 million, eking out an increase of 0.3% despite cutbacks from many of the top companies across the banking, credit card and lending segments.
Telecommunications category spending slipped 7.5% to $2,053.8 million. Higher expenditures by cable and satellite TV companies were more than offset by reductions at major wireless providers.
Direct response had the largest percentage gain, up 9.3% to $1,912.0 million. The category showed deep strength with higher ad spending levels from a broad range of brands. Local services & amusements (up 4.3%), Restaurants (up 3.2%) and Travel & Tourism (up 3.1%) posted comparatively strong gains.
| Brand Appearances vs. Advertising: Q1 2008 | ||
| (minutes:seconds per hour) | ||
| BRAND APPEARANCES | AD MESSAGES1 | |
| PRIME TIME NETWORK | 12:08 | 15:05 |
| Unscripted Programs | 17:19 | 15:09 |
| Scripted Programs | 05:29 | 05:00 |
| LATE NITE NETWORK | 12:17 | 14:36 |
| (Kimmel, Leno, Letterman) | ||
| Source: TNS media intelligence | ||
| 1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded. | ||
A recent report from the Advertising Association revealed that UK advertising expenditure reached £19.4 billion in 2007, up 4.2% year-on year (see UK Adspend Grew 4.2% In 2007).