Total ad spend fell to $125.3 billion as compared to 2008, according to data released by Kantar Media. Q4 2009 spend was off 6% against the year ago period, with nearly all media improving upon their January-September performance.
The advertising recession began to ease in the final two months of 2009 and preliminary figures from Q1 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% 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% 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%, helped by an expanding amount of commercial time. Network TV (-7.6%) and Spanish Language TV (-8.9%) each saw year-end improvement in key categories that lifted their results. By contrast, Spot TV lagged far behind with a 23.7% 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% in 2009. Sunday Magazine expenditures declined 11.0% and Consumer Magazines were down 16.6%.
Percent Change in Measured Ad Spending1
|— Network TV||-7.6%||4.1%|
|— Cable TV2||-1.4%||2.7%|
|— Spot TV3||-23.7%||-13.9%|
|— Spanish Language TV4||-8.9%||-4.7%|
|— Syndication – National||-4.9%||-10.7%|
|— Consumer Magazines||-16.6%||-11.1%|
|— B-to-B Magazines||-26.2%||-22.7%|
|— Sunday Magazines||-11.0%||3.6%|
|— Local Magazines||-27.7%||-18.2%|
|— Spanish Language Magazines||-21.6%||-12.8%|
|— Newspapers (Local)||-20.0%||-10.3%|
|— National Newspapers||-17.8%||0.4%|
|— Spanish Language Newspapers||-16.4%||-10.7%|
|INTERNET (display ads only)||7.3%||-2.1%|
|— Local Radio7||-20.6%||-11.7%|
|— National Spot Radio||-24.6%||-16.9%|
|— Network Radio||-8.7%||-7.9%|
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% 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 5.1%, 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%.
Procter & Gamble was again the largest advertiser with $2,714.3 million in spending, down 15.6% versus a year ago. Verizon Communications held onto the second position with expenditures of $2,238.2 million, a drop of 6.9%.
Three of the top advertisers posted healthy double-digit gains. Wal-Mart upped its budgets by 35.4% behind the launch of its “Save Money, Live Better” campaign. Pfizer spending rose 32.7% 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%.
General Motors, despite a 30% drop in vehicles sold, spent 1.3% more on media advertising and was the only auto company in the Top Ten rankings.
Top Ten Advertisers:
Jan-Dec 2009 vs. Jan-Dec 20081
Jan – Dec 2009
Jan – Dec 2008
|Procter & Gamble Co||$2,714.3||$3,217.1||-15.6%|
|Verizon Communications Inc||$2,238.2||$2,403.4||-6.9%|
|General Motors Corp||$2,197.5||$2,168.3||1.3%|
|Johnson & Johnson||$1,250.4||$1,368.6||-8.6%|
|Sprint Nextel Corp||$1,227.1||$944.8||29.9%|
|Time Warner Inc||$1,204.8||$1,292.9||-6.8%|
|Wal-Mart Stores Inc||$1,169.6||$864.1||35.4%|
1. Figures do not include FSI, House Ads or PSA activity. 2. The sum of the individual companies may differ from the Total shown due to rounding.
Measured Ad Spending by Category
Expenditures for the 10 largest advertising categories fell 10.7% in 2009 and totaled $70,739.4 million.
Automotive was the top category with total spending of $10,977.6 million, down 23.4% from the prior year. Fourth quarter figures were markedly brighter, a decline of just 0.9%. Dealers continued to cut budgets more severely than manufacturers in the face of withering sales. Auto category spending has now declined for 18 consecutive quarters.
Telecom was the second largest category with $8,606.8 million of measured expenditures, a gain of 1.6%. Results were driven by the fierce competition among wireless carriers and TV service providers.
Two other categories also finished the year with higher spending. Food & Candy was up 3.5% to $6,261.0 million as many leading marketers took advantage of lower ad prices and strategically increased support for key brands. Pharmaceutical expenditures rose 3.9% to $4,751.8 million on the strength of well-funded marketing launches for several newly approved prescription drugs.
Top Ten Advertising Categories:
Jan-Dec 2009 vs. Jan-Dec 20081
|7||Food & Candy||$6,261.0||$6,046.8||3.5%|
|9||Personal Care Products||$5,538.9||$6,026.6||-8.1%|
1. Figures do not include FSI or PSA activity. 2. Miscellaneous Retail does not include these retail segments: Department Stores, Home Furnishing/Building Supply Stores. 3. The sum of the individual categories may differ from the total due to rounding.
Kantar Media 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 the commercial breaks.
In the fourth quarter of 2009, an average hour of monitored prime time network programming contained eight minutes, thirty six seconds (8:36) of in-show Brand Appearances and 14:05 of network commercial messages. The combined total of 22:41 of marketing content represents 38% of a prime-time hour.
Unscripted reality programming had an average of 15:15 per hour of Brand Appearances as compared to just 5:26 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows had an average of 12:10 per hour. The combined load of Brand Appearances and network ad messages in these late night shows was 28:01 per hour, or 47% of total content time.
Brand Appearances vs. Advertising: Q4 2009
(minutes:seconds per hour)
|PRIME TIME NETWORK||8:36||14:05||22:41|
|LATE NITE NETWORK
(Kimmel, O’Brien, Letterman)
1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded.
The top five brands ranked by number of Brand Appearances were Yamaha Music Equipment, 24 Hour Fitness Center, Dell, Ford, and Bud Light.