US Adspend Decreases In First Three Quarters Of 2007
The Nielsen Company has reported that US advertising spending for the first three quarters of 2007 decreased 0.1% year on year, with internet continuing to demonstrate the strongest performance (up 15.9%) of any category.
| Media Category | First Three Quarters 2006 vs. First Three Quarters 2007, % Change |
| Internet* | 15.90% |
| National Magazines | 7.70% |
| Nat’l Sunday Supplements | 6.00% |
| Outdoor | 5.70% |
| National Cable TV | 1.20% |
| Spanish-Language TV | 0.50% |
| Spot TV Markets 101-210 | -0.40% |
| Network Radio | -1.70% |
| Spot Radio | -1.80% |
| Local Sunday Supplements | -2.00% |
| Network TV | -2.50% |
| B2B Magazines | -3.70% |
| Local Magazines | -4.60% |
| Spot TV 1-100 | -5.00% |
| National Newspaper | -5.20% |
| Local Newspaper | -7.40% |
| Total Advertising Spending | -0.10% |
| Source: Nielsen Monitor-Plus | |
| * Internet data provided by Nielsen Online, AdRelevance | |
| Notes: Nielsen Online, AdRelevance service estimated online advertising expenditures account for CPM-based image-based advertising. These reported estimated expenditures 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 | |
Advertising spending across monitored media for the top 10 companies in the first half of 2007 reached $30.5 billion, down an average of 6.3% from the same time period in 2006. Eight out of the ten advertisers decreased budgets. General Motors continues to show the largest decline.
Spending for the 10 largest categories reached $20.8 billion in the first three quarters, 2.3% less than the same period last year. Most product categories have decreased their ad spending, with the exception of pharmaceuticals, wireless telephone services, and direct response products.
The top category in terms of increased ad spend was wireless telephone services at 7.3% – Verizon Wireless was the top brand in terms of total ad spending for this time period in the wireless product category at $449.2 million, and AT&T Wireless second at $402.5 million in ad spend.
| Product Category | Jan – Sept 2006 ($ mil) | Jan – Sept 2007 ($ mil) | % Change |
| Automotives | $9,821 | $8,491 | -13.50% |
| Pharmaceuticals | $3,755 | $3,854 | 2.60% |
| Automotive- Local Dealerships | $3,629 | $3,426 | -5.60% |
| Quick Svs Restaurant | $3,122 | $2,922 | -6.40% |
| Motion Picture | $2,698 | $2,662 | -1.30% |
| Teleph Svcs-Wireless | $2,478 | $2,657 | 7.30% |
| Department Stores | $2,638 | $2,440 | -7.50% |
| Direct Response Products | $1,592 | $1,639 | 2.90% |
| Restaurant | $1,268 | $1,260 | -0.60% |
| Credit Card Services | $1,223 | $1,219 | -0.30% |
| Source: Nielsen Monitor-Plus | |||
A forecast from eMarketer predicted that US advertisers are expected to spend $1.6 billion on social networks in 2008, a year on year rise of 69% (see US Advertisers To Spend $1.6bn On Social Networks In 2008).
Meanwhile, GroupM predicted that worldwide advertising spending is expected to rise 7% to $479 billion in 2008, following an anticipated 6% increase in 2007 (see Worldwide Adspend Expected To Rise 7% to $479 billion In 2008).