| New York,
NY, December 11, 2008 – Total measured advertising
expenditures in the first nine months of 2008 declined by 1.7 percent
as compared to the same period in 2007, according to data released
today by TNS Media Intelligence, the leading provider of strategic
advertising and marketing information. Ad spending during the third
quarter of 2008 was off 2.0 percent versus last year, despite a positive
stimulus from the Summer Olympics and political elections.
“Media ad spending, which began tiptoeing into negative territory
in early 2007, has crossed an inflection point in the past six month
as the economic downturn has become more widespread,” said
Jon Swallen, SVP Research at TNS Media Intelligence. “Preliminary
data from the fourth quarter indicate a further slackening of the
overall advertising market. Consumer spending levels, which drive
the corporate profits that in turn fund marketing budgets, remain
a serious concern and will have a strong influence on the depth
and duration of the current difficulties facing advertising.”
“By most accounts, the current economic recession will be
deep and lengthy and with it will come continuing challenges for
the advertising and media industries,” said Dean DeBiase,
CEO TNS Media. “Undoubtedly, these industries will have to
make some hard decisions in the coming months, decisions that perhaps
had been deferred during periods of growth. But ultimately, this
period can be viewed as an opportunity to effect such changes, leading
to a leaner and more effective industry in the years ahead.”
Ad Spending by Media
For the nine month period, Internet display advertising expenditures
increased 7.0 percent as marketers continued to expand their online
investments. However, growth rates have been getting smaller for
five consecutive quarters.
The Summer Olympics boosted third-quarter Network TV ad spending
and turned a six-month loss into a nine month gain with year-to-date
expenditures up 3.0 percent. Cable TV (+3.7 percent) was aided by
limited exposure to the early-year TV writer’s strike and
successful summer programming. Syndication TV (+9.0 percent) benefitted
from more hours of programming.
Consumer magazine ad spending was down 3.8 percent with the reduction
broadly distributed across a number of key categories including
apparel, direct response and pharmaceutical.
Local media expenditures continue to deteriorate in the wake of
cutbacks from automotive, retail and telecom advertisers. Spot TV
fell 2.6 percent, despite record-setting levels of political spending.
Expenditures plunged by 10.0 percent in Newspaper media and by 8.8
percent in Radio media. Outdoor advertising, after six years of
uninterrupted growth, fell into the red during the third quarter
and finished the nine-month period with a loss of 0.5 percent.
Overall, local media ad spending was down 6.7 percent through September
while national media eked out a small increase of 0.9 percent.
Percent Change in Measured Ad Spending:
Jan-Sept 2008 vs. Jan-Sept 2007 1
|
| TELEVISION MEDIA |
2.1% |
| · Network TV |
3.0% |
| · Cable TV |
3.7% |
| · Spot TV 2 |
-2.6% |
| · Spanish Language TV |
0.3% |
| · Syndication - National |
9.0% |
| MAGAZINE MEDIA 3 |
-3.9% |
| · Consumer Magazines |
-3.8% |
| · B-to-B Magazines |
-6.9% |
| · Sunday Magazines |
0.3% |
| · Local Magazines |
-6.5% |
| · Spanish Language Magazines |
4.9% |
| NEWSPAPER MEDIA |
-10.0% |
| · Local Newspapers |
-10.2% |
| · National Newspapers |
-8.9% |
| · Spanish Language Newspapers |
-12.7% |
| INTERNET 4 |
7.0% |
| RADIO MEDIA |
-8.8% |
| · Local Radio 5 |
-8.8% |
| · National Spot Radio |
-11.1% |
| · Network Radio |
-2.6% |
| OUTDOOR |
-0.5% |
| FSIs 6 |
0.9% |
| Total |
-1.7% |
|
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 (212 publications); Sunday Magazines (5 publications); Local
Magazines (20 publications); Hispanic Magazines (27 publications);
Business-to-Business Magazines (288 publications); Local Newspapers
(144 publications); National Newspapers (3 publications); Hispanic
Newspapers (50 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 32 markets in the U.S.
6. FSI data represents distribution costs only.
Ad Spending by Advertiser
The top 10 advertisers in the first nine months of 2008 spent a
combined total of $12,834.6 million, a 0.2 percent decrease 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 2.1 percent.
Procter & Gamble held its position as the largest advertiser
with $2,291.4 million in expenditures for the January-September
period, a 5.9 percent decline versus a year ago.
Verizon Communications continues to escalate marketing supporting
for its wireless division and this led to a 12.8 percent increase
in total ad spending, to $1,713.8 million. By comparison, rival
AT&T reduced its outlays 13.7 percent, to $1,453.2 million,
the biggest drop among the Top 10 companies.
General Motors remains the lone automotive representative on the
Top 10 list (Toyota and Ford ranked #11 and #12, respectively).
In the face of dismal industry sales and its own eroding market
share, GM aggressively hiked ad spending by 15.7 percent, to $1,590.4
million, and concurrently reallocated budgets away from light trucks
and toward passenger cars.
Strong increases were also registered by General Electric (+12.8
percent to $894.0 million) and News Corp (+10.4 percent to $1,061.5
million) while Time Warner (-10.5 percent to $1,097.1 million) and
Walt Disney (-6.4 percent to $887.7 million) had sizable reductions.
Results for each of these companies were primarily shaped by their
movie studio divisions.
Top Ten Advertisers:
Jan-Sep 2008 vs. Jan-Sep 20071
|
| 1 |
Procter & Gamble Co |
$2,291.40 |
$2,436.30 |
-5.9% |
| 2 |
Verizon Communications Inc |
$1,713.80 |
$1,519.10 |
12.8% |
| 3 |
General Motors Corp |
$1,590.40 |
$1,374.90 |
15.% |
| 4 |
AT&T Inc |
$1,453.2 |
$1,684.2 |
-13.7% |
| 5 |
Time Warner Inc |
$1,097.1 |
$1,226.5 |
-10.5% |
| 6 |
Johnson & Johnson |
$1,062.0 |
$1,075.8 |
-1.3% |
| 7 |
News Corp |
$1,061.5 |
$961.6 |
10.4% |
| 8 |
General Electric Co |
$894.0 |
$792.9 |
12.8% |
| 9 |
Walt Disney Co |
$887.7 |
$948.6 |
-6.4% |
| 10 |
Kraft Foods Inc |
$783.4 |
$838.7 |
-6.6% |
| |
TOTAL |
$12,834.6 |
$12,858.5 |
-0.2% |
|
Source: TNS Media Intelligence
1 Figures do not include FSI, House Ads or PSA activity.
Ad Spending by Category
The top 10 advertising categories in January-September 2008 spent
a total of $54,222.2 million, down 1.0 percent from a year ago.
Automotive was the top-spending category at $9,626.7 million, a
drop of 12.7% which is proportionately in line with the drop in
new vehicle sales. Spending cutbacks were more severe for the domestic
segment than imports. Automotive expenditures have now declined
for thirteen consecutive quarters.
Financial services advertising rebounded modestly in the third
quarter after a lackluster first half and the category finished
the nine month period at $6,765.2 million, up 0.8 percent. During
the third quarter, advertising for investment products picked up
and retail bank spending was flat as these marketers grappled with
consumer’s growing concerns about shrinking portfolios and
the safety of their deposits. Loan advertising was down sharply.
Among the leading categories, the largest percentage gain was posted
by Restaurants, up 6.1 percent to $4,278.6 million, as quick service
eateries battled to maintain store traffic and market share amidst
a progressive slowdown in consumer spending. Food and Candy (+6.0
percent to $4,632.0 million) and Local Services & Amusements
(+2.3 percent to $6.274.3 million) also lifted their spending.
Telecommunications expenditures fell 5.2 percent to $6,296.6 million,
primarily due to $600+ million in cutbacks by AT&T and Sprint
Nextel. Miscellaneous Retail, which includes all retail segments
except department stores and home furnishings/appliance stores,
was down 4.8 percent to $5,949.7 million.
Top Ten Advertising Categories:
Jan-Sep 2008 vs. Jan-Sep
2007
|
| 1 |
Automotive |
$9,626.7 |
$11,024.4 |
-12.7% |
| |
· (Foreign) |
$5,518.5 |
$5,957.4 |
-7.4% |
| |
· (Domestic) |
$4,108.1 |
$5,067.0 |
-18.9% |
| 2 |
Financial Services |
$6,765.2 |
$6,713.6 |
0.8% |
| 3 |
Local Services & Amusements |
$6,724.3 |
$6,576.2 |
2.3% |
| 4 |
Telecom |
$6,296.6 |
$6,639.3 |
-5.2% |
| 5 |
Miscellaneous Retail1 |
$5,949.7 |
$6,252.3 |
-4.8% |
| 6 |
Direct Response |
$5,405.8 |
$5,510.1 |
-1.9% |
| 7 |
Food & Candy |
$4,632.0 |
$4,369.9 |
6.0% |
| 8 |
Personal Care Products |
$4,481.5 |
$4,619.6 |
-3.0% |
| 9 |
Restaurants |
$4,278.6 |
$4,032.2 |
6.1% |
| 10 |
Travel & Tourism |
$4,170.0 |
$4,090.4 |
1.9% |
| |
TOTAL |
$54,222.2 |
$54,760.9 |
-1.0% |
|
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 Miscellaneous Retail does not include these retail segments: Department
Stores, Home Furnishing & Appliance Stores.
Branded Entertainment
TNS Media Intelligence continuously monitors Branded Entertainment
within network prime time and late night programming. The tracking
identifies Brand Appearances and measures their duration and attributes.
Given the short length of many Brand Appearances, duration is a
more relevant metric than a count of occurrences for quantifying
and comparing the gross amount of brand activity that viewers are
potentially exposed to in the program versus in the commercial breaks.
In the third quarter of 2008, an average hour of monitored prime
time network programming contained exactly 9 minutes (9:00) of in-show
Brand Appearances, a nine percent increase from a year ago. In addition,
there was 13:41 per hour of network commercial messages. The combined
total of 22:41 of marketing content represents 38 percent of a prime-time
hour.
Unscripted reality programming had an average of 10:12 per hour
of Brand Appearances as compared to just 6:10 per hour for scripted
programs such as sitcoms and dramas. Late night network talk shows
averaged 15:15 per hour. The combined load of Brand Appearances
and network ad messages in these shows reached 30:28 per hour, or
51 percent of total programming time.
Brand Appearances vs. Advertising: Q3 2008
(minutes:seconds per hour)
|
| PRIME TIME NETWORK |
9:00 |
13:41 |
| Unscripted Programs |
10:12 |
14:07 |
| Scripted Programs |
6:10 |
12:37 |
LATE NITE NETWORK
(Kimmel, Leno, Letterman) |
15:15 |
15:13 |
|
Source: TNS Media Intelligence
1 Figures include network advertisements, station promotions and PSAs.
Local commercial time is excluded.
Among all monitored network programming during the period, America’s
Toughest Jobs had the highest average volume of Brand Appearance
time at 46 minutes, 31 seconds (46:31) per hour. Rounding out the
top five were Knight Rider (40:01); CSI: Miami (31:29); Biggest
Loser: Families (29:27); and Amazing Race (28:22).
About TNS Media
Established in more than 30 countries, TNS Media explores all media
- print, radio, TV, Internet, social media, cinema and outdoor worldwide,
24 hours a day, seven days a week, and offers a full range of insights,
analyses and audience measurement services.
TNS Media combines the deepest expertise in the industry to provide
media and marketing intelligence including advertising expenditure
monitoring, advertising creation monitoring, audience measurement,
market influence analytics, online consumer behavior tracking, news
monitoring, sports sponsorship evaluation and more. The TNS Media
companies track more than 3 million brands and provide vital market
intelligence to 16,000 customers around the world. For further information,
please visit www.tnsmediagroup.com
About Kantar Group and TNS
The Kantar Group is one of the world's largest research, insight
and consultancy networks. By uniting the diverse talents of more
than 20 specialist companies – including the recently-acquired
TNS – the group aims to become the pre-eminent provider of
compelling and actionable insights for the global business community.
Its 26,500 employees work across 80 countries and across the whole
spectrum of research and consultancy disciplines, enabling the group
to offer clients business insights at each and every point of the
consumer cycle. The group’s services are employed by over
half of the Fortune Top 500 companies. The Kantar Group is a wholly-owned
subsidiary of WPP Group plc. For further information, please visit
www.kantargrouptns.com
|
|
