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Ad Spend Sees Steepest Drop Since 2001

Written on
Sep 24, 2008 
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Kathleen  |
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Ad Spend Sees Steepest Drop Since 2001

knife_recession_small.jpgADOTAS – Advertising expenditures in the first six months this year were down 1.6% year-over-year, according to a report from TNS Media Intelligence. Ad spending during the second quarter of 2008 was off 3.7% versus last year, the steepest quarterly drop since 2001. While this news isn’t good for anyone, online advertisers are probably in the best sector of the market – and may even witness growth.
“Advertising expenditures started to contract in March, well before the September turbulence on Wall Street renewed concerns about the health of the economy and possible collateral damage to the ad market,” said Jon Swallen, SVP of research at TNS Media Intelligence. “Second half results, particularly for television media, will be bolstered by the Summer Olympics and political elections. However, sustained improvement will most likely depend on a turnaround in consumer spending that rejuvenates corporate profits and encourages marketers to expand their advertising efforts.”
The news isn’t all bad. According to the report, interactive advertisers may reap the some of the benefits of the downturn.
“While expenditures are certainly indicative of the challenges being presented by the economy, they also suggest the continuation of the long-term trend of marketing dollars migrating to media such as the Internet, cable TV and syndication that provide the ability to more effectively target specific audiences,” said Dean DeBiase, CEO of TNS Media. “With advertising budgets and CMOs under pressure and uncertainties continuing to exist relative to consumer spending, it appears marketers are placing an emphasis upon enhanced efficiencies for their brands and the ability to engage with well defined audiences to ensure ever greater return on investment.”
Every one of the 19 measured media types posted weaker year-over-year performance in the second quarter as compared to the first three months of 2008. For the half year, Internet display advertising expenditures increased 8% as marketers continued to expand their online programs. Cable TV (+3.1%) and Syndication TV (+10.2%) were aided by limited exposure to the TV writer’s strike. Outdoor ad spending advanced by 1.8%.
Spot TV expenditures fell 4.4% as reductions in automotive, retail and telecommunications advertising more than offset gains from political spending. Network TV slipped 2.4% on weaker prime time results. Newspaper media (-7.4%) and Radio media (-6.5%) continued to lag on further slowdowns in spending from the auto, financial, retail and telecom categories.
The top 10 advertisers in the first six months of 2008 spent a combined total of $8,442.7 million, a 3% 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 4.7%.

The TNS Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers in the world.





Reader Comments.

Why isn’t there a future’s market for online advertising? All the exchanges already have unbelievable data on prices.

Money is waiting for someone to steal and execute this idea.

Posted by Noah.tv | 12:39 pm on September 24, 2008.

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