Kantar Media: U.S. Advertising Expenditures Declined 12.3 Percent in 2009


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New York, NY - Mar 17, 2010 - According to data released by Kantar Media, total advertising expenditures fell 12.3 percent in 2009 to $125.3 billion as compared to 2008. Fourth quarter 2009 ad spending was off 6.0 percent against the year ago period, with nearly all media improving on their January-September performance.

"The advertising recession began to ease in the final two months of 2009 and preliminary figures from the first quarter of 2010, when compared against the abyss of a year ago, indicate many sectors are experiencing growth," said Jon Swallen, SVP Research at Kantar Media. "Given the restraint in consumer spending, it appears marketers have more confidence right now than their customers. As we get deeper into 2010, the pace of consumer activity will be a key determinant of the strength and durability of the advertising recovery."

Internet display advertising expenditures increased 7.3 percent in 2009, aided by sharply higher spending from the telecom, factory auto and travel categories. The only other media type achieving full-year growth was free-standing Inserts, up 3.0 percent as CPG marketers targeted value-conscious shoppers with couponing programs.

National TV media continued to outperform the overall ad market. Cable TV expenditures dropped just 1.4 percent, helped by an expanding amount of commercial time. Network TV (-7.6 percent) and Spanish language TV (-8.9 percent) each saw year-end improvement in key categories that lifted their results. By contrast, spot TV lagged far behind with a 23.7 percent spending drop versus a 2008 period that was bolstered by record amounts of political advertising.

Print media were hit by large reductions across a broad range of advertisers. Measured ad spending in the newspaper sector plunged by 19.7 percent in 2009. Sunday magazine expenditures declined 11.0 percent and consumer magazines were down 16.6 percent.

Percent Change in Measured Ad Spending1

MEDIA SECTOR
Media Type
(Sectors and types listed in rank order of spending)
Full Year 2009 vs. 20084th Quarter 2009 vs. 2008
TELEVISION MEDIA-9.5%-2.4%
º Network TV-7.6%4.1%
º Cable TV2-1.4%2.7%
º Spot TV3-23.7%-13.9%
º Spanish-language TV4-8.9%-4.7%
º Syndication - National-4.9%-10.7%
MAGAZINE MEDIA5-17.4%-11.5%
º Consumer magazines-16.6%-11.1%
º B-to-B magazines-26.2%-22.7%
º Sunday magazines-11.0%3.6%
º Local magazines-27.7%-18.2%
º Spanish-language magazines-21.6%-12.8%
NEWSPAPER MEDIA6-19.7%-8.9%
º Newspapers (Local)-20.0%-10.3%
º National newspapers-17.8%0.4%
º Spanish-language newspapers-16.4%-10.7%
INTERNET (display ads only) 7.3%-2.1%
RADIO MEDIA-20.3%-12.5%
º Local radio7-20.6%-11.7%
º National spot radio-24.6%-16.9%
º Network radio-8.7%-7.9%
OUTDOOR-13.2%-5.4%
FSIs83.0%0.0%
TOTAL-12.3%-6.0%

Source: Kantar Media 1. Figures are based on the Kantar Media Stradegy multimedia ad expenditure database across all measured media, including: Network TV (6 networks); Spot TV (123 DMAs); Cable TV (71 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (231 publications);,Sunday Magazines (7 publications); Local Magazines (19 publications); Hispanic Magazines (14 publications); Business-to-Business Magazines (260 publications); Local Newspapers (147 publications); National Newspapers (3 publications); Hispanic Newspapers (47 publications); Network Radio (5 networks); Spot Radio; Local Radio (32 markets); Internet; and Outdoor. Figures do not include public service announcement (PSA) data.
2. Cable TV figures do not include Hispanic cable networks.
3. Spot TV figures do not include Hispanic stations.
4. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable network and 70 local Hispanic TV stations.
5. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications.
6. Newspaper media figures reflect print editions of publications.
7. Local Radio includes expenditures for 32 markets in the U.S.
8. FSI data represents distribution costs only.

Measured Ad Spending by Advertiser

The top 10 advertisers of 2009 spent a combined total of $16,556.1 million in measured media, which was just 0.9 percent lower compared to their 2008 outlays. Among the top 50 marketers, a diversified group representing one-third of the measured ad economy, 2009 spending fell 5.1percent, to $42,401.3 million. At the other end of the spectrum, small advertisers -- defined as those ranked outside the top 1,000 -- trimmed their collective budgets by 20.3 percent.

Procter & Gamble was again the largest advertiser with $2,714.3 million in spending, down 15.6 percent versus a year ago. Verizon Communications held onto the second position with expenditures of $2,238.2 million, a drop of 6.9 percent.

Three of the top advertisers posted healthy double-digit gains. Wal-Mart upped its budgets by 35.4 percent behind the launch of its "Save Money, Live Better" campaign. Pfizer spending rose 32.7 percent as the company boosted marketing support for Lipitor ahead of the brand's 2011 patent expiration. Sprint Nextel, battling for market share against its larger wireless rivals, hiked expenditures by 29.9 percent.

General Motors, despite a 30 percent drop in vehicles sold, spent 1.3 percent more on media advertising and was the only auto company in the top ten rankings.




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