US ad expenditures fall 4.1% year on year
Total US advertising expenditures declined 4.1% year on year in 2008, to $141.7, according to new data from TNS Media Intelligence.
Jon Swallen, SVP research at TNS Media Intelligence, said: “The ad market at 2008 year end was buffeted by a souring economy, deteriorating consumer confidence and weakening corporate balance sheets.
“Preliminary figures from the first quarter of 2009 indicate little change in the health of the overall ad economy as total spending continues to contract sharply.”
Internet display advertising expenditures grew by 4.6% in 2008, the weakest full-year results for the medium since the dot.com bust of 2002, said TNS.
A recent report from Screen Digest predicted that US online advertising would fall 5% in 2009 (see US online advertising forecast to fall 5% in 2009).
Screen Digest said that while internet advertising grew 10% in 2008, the fourth quarter was almost flat at +2.6%, a significant change from the first nine months of the year.
TNS also found that print media felt the harsh effects of accelerating and deep cutbacks across core ad categories. Measured ad spending in the Newspaper sector was 11.8% lower in 2008 as compared to the prior year. Consumer Magazine expenditures declined by 7.5%.
Expenditures for the ten largest advertising categories slipped 4.4% in 2008 and totaled $77,850.5 million. In aggregate this group accounts for more than one-half of all measured ad spending.
| Percent Change in Measured Ad Spending 1 | ||
| MEDIA SECTOR | Full Year | 4th Quarter 2008 vs 2007 |
| Media Type | 2008 vs 2007 | |
| (Sectors and types listed in rank order of spending) | ||
| TELEVISION MEDIA | 0.10% | -5.10% |
| Network TV | -0.80% | -10.60% |
| Cable TV | 2.10% | -2.30% |
| Spot TV 2 | -2.80% | -3.60% |
| Spanish Language TV | 0.10% | -0.10% |
| Syndication – National | 6.50% | 0.00% |
| MAGAZINE MEDIA 3 | -7.50% | -13.90% |
| Consumer Magazines | -7.50% | -13.60% |
| B-to-B Magazines | -10.50% | -18.30% |
| Sunday Magazines | -4.80% | -12.00% |
| Local Magazines | -4.60% | -13.00% |
| Spanish Language Magazines | 4.90% | 3.40% |
| NEWSPAPER MEDIA | -11.80% | -16.50% |
| Local Newspapers | -11.80% | -16.30% |
| National Newspapers | -11.50% | -17.90% |
| Spanish Language Newspapers | -14.20% | -18.30% |
| INTERNET 4 | 4.60% | 7.00% |
| RADIO MEDIA | -10.30% | -14.80% |
| Local Radio 5 | -11.10% | -17.70% |
| National Spot Radio | -11.20% | -11.60% |
| Network Radio | -2.70% | -3.20% |
| OUTDOOR | -1.70% | -11.20% |
| FSIs 6 | 1.80% | 5.00% |
| TOTAL | -4.10% | -9.20% |
| 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; Spot TV (101 DMAs); Cable TV (52 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (241 publications);,Sunday Magazines (8 publications); Local Magazines (18 publications); Hispanic Magazines (24 publications); Business-to-Business Magazines (264 publications); Local Newspapers (144 publications); National Newspapers (3 publications); Hispanic Newspapers (49 publications); Network Radio (5 networks); Spot Radio; Local Radio (32 markets); 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 32 markets in the U.S. | ||
| 6. FSI data represents distribution costs only. | ||