US advertising down 15.4%
US advertising for the first six months of 2009 was down 15.4% year on year, according to the latest data from The Nielsen Company.
Preliminary figures show that US ad expenditures declined by over $10.3 billion to a total of $56.9 billion in the first two quarters.
Cable television ad spending was the only medium to show growth in the first six months of the year, up by 1.5%. Nielsen said that the increase is especially significant since it reported Cable TV ad spending was down 2.7% in Q1.
The rest of Nielsen’s measured media showed year on year declines, ranging from internet (-1.0%) to local Sunday supplements (-45.7%).
Annie Touliatos, VP for Nielsen’s advertising information services, said: “While some of the larger categories have cut back spending, we see others that continue to raise the ante on their media investments.
“What’s interesting is that we’re not just seeing a rise in spending for recession-friendly products like fast food restaurants. We’re seeing a lot more promotion of technological innovations like smartphones, computer software, and consumer-driven web sites. These advertisers see potential for their products despite our stressed economy and are leveraging advertising to drive their success.”
| Media Category | First Half 2009 v First Half 2008 Change |
|---|---|
| Cable TV | 1.5% |
| Spanish Language Cable TV | 0.6% |
| Internet | -1.0% |
| FSI Coupon | -5.5% |
| Network TV | -7.0% |
| Network Radio | -9.0% |
| Spot Radio | -9.1% |
| Spanish Language TV | -10.1% |
| Syndication TV | -11.6% |
| Local Newspaper | -13.2% |
| Outdoor | -14.9% |
| Spot TV Top 100 DMAs | -17.4% |
| National Magazine | -21.2% |
| National Sunday Supplement | -22.4% |
| National Newspaper | -22.8% |
| Local Magazine | -25.4% |
| B-2-B Magazines | -31.8% |
| Spot TV 101-210 DMAs | -32.1% |
| Local Sunday Supplements | -45.7% |
| Grand Total | -15.4% |
In July, Strategy Analytics forecast that the total advertising sector in North America will decline 10.2% in 2009, with the online advertising sector down 3.2%.
Also in July, Magna predicted that US ad revenues will decline by 14% this year, from a total of $189 billion in 2008 to $161 billion.
“The first half of 2009 will likely turn out to be the worst period of this recession, during which time Magna estimates media supplier advertising revenues will have fallen by 18% vs. the same period in 2008,” said Magna.