Display Soars as Ad Spending Overall Tanks
ADOTAS — Uh-oh, spaghetti-o.
The advertising slowdown everyone’s been sweating over? It’s here. And it’s been here – for some time. According to TNS media intelligence, the advertising market fizzled in 2007, and closed out the year with measured spending of $148.99 billion, up only 0.2% from 2006.
Total expenditures during the fourth quarter of last year fell by 0.1% compared to a year ago.
“As a whole, the ad market remains stalled and is being engulfed by the spreading pessimism about general economic conditions,” said Jon Swallen, SVP Research at TNS media intelligence. “Fourth quarter performance was indicative of this malaise and early figures from 2008 suggest the growth rate for measured ad spending has not appreciably changed. A cyclical boost from the elections and Olympics still waits on the horizon. However, marketers are being cautious with their core ad budgets faced with concerns about consumer spending and corporate profits.”
As a whole the ad market’s hitting the skids … but display advertisements grew by 15.9% to $11.31 billion in expenditures last year.
Also in the red (though less so):
- Spanish Language magazines 10.4% growth
- Sunday magazines 7.2% growth
- Consumer magazines 7% growth
- Cable TV 6.5% growth
- Outdoor ads 4.9% growth
- FSIs 1.8% growth
- Spanish Language TV 1.3% growth
The hardest-hit:
- Spot TV 10.2% shrinkage
- National spot radio 7.1% shrinkage
- Newspapers (local) 5.6% shrinkage
- Newspapers (national) 5.5% shrinkage
- B-to-B magazines 4.2% shrinkage
Also of interest from TNS:
Share of Measured Advertising Spending by Media: 2004 Through 2007
MEDIA TYPE 2007 2006 2005 2004
NATIONAL TV 32.0 % 31.5 % 31.6 % 31.0 %
MAGAZINES 20.4 % 19.3 % 19.8 % 19.0 %
NEWSPAPERS 17.7 % 18.8 % 20.2 % 20.4 %
LOCAL TV 11.3 % 12.5 % 11.5 % 13.1 %
INTERNET 7.6 % 6.6 % 5.8 % 5.3 %
RADIO 7.2 % 7.5 % 7.7 % 7.8 %
ALL OTHER 3.9 % 3.8 % 3.5 % 3.3 %
TOTAL 100.0 % 100.0 % 100.0 % 100.0 %
It looks like Internet advertising, which even now only comprises 7.6% of the market (up from 5.3% in 2004) and is going gangbusters may grow by leaps and bounds in 2008 as the other categories continue their downward descent.
TNS media intelligence is part of TNS, a global marketing insight and information group.
Reader Comments.
I didn’t see cable tv or weekly newspapers listed. Are their shares up or down since 2004?
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