The Nielsen Company reported that U.S. advertising for the full year 2008 was down 2.6% compared to the full year 2007. According to preliminary figures from Nielsen, U.S. ad expenditures declined almost $3.7 billion to a total spend of $136.8 billion in 2008.
Hispanic Cable TV (+9.6%) and Cable TV (+7.8%) were the only two media to show ad growth in 2008. Cable was the highest revenue-generating medium with $26.6 billion in sales. Meanwhile, Network TV ad revenue declined 3.5% in 2008.
Print media continued its anticipated decline in 2008. Local and National Newspaper ad spends declined 10.2% and 9.6%, respectively. National Magazines fell 7.6%, while Local Magazines dropped 3.7%.
|
Media Category |
Jan-Dec ’08 vs. Jan-Dec ’07 % Change |
|
Hispanic Cable TV |
9.6% |
|
Cable TV |
7.8% |
|
Spot TV Top 100 |
-0.3% |
|
Syndication TV |
-0.8% |
|
National Sunday Supplement |
-1.9% |
|
Hispanic Broadcast TV |
-2.4% |
|
Network Radio |
-3.3% |
|
Broadcast Network TV |
-3.5% |
|
Local Magazine |
-3.7% |
|
Spot Radio |
-4.0% |
|
Spot TV 101-210 |
-4.6% |
|
Outdoor |
-5.0% |
|
FSI Coupon |
-5.2% |
|
Internet* |
-6.4% |
|
National Magazine |
-7.6% |
|
National Newspaper |
-9.6% |
|
Business to Business |
-9.7% |
|
Local Newspaper |
-10.2% |
|
Local Sunday Supplements |
-11.0% |
|
TOTAL |
-2.6% |
|
Source: The Nielsen Company * Internet advertising expenditures account for CPM-based, image-based advertising. These reported estimated expenditures do not account for paid search advertising, text only, paid fee services, performance-based campaigns, sponsorships, barters, in-stream (“pre-rolls”) players, messenger applications, partnership advertising, promotions and email campaigns or house advertising activity. |
|
“Given the state of the U.S. economy, a decline in ad spending was expected, but it’s not as bad as it could have been,” said Annie Touliatos, VP of Sales Development for Monitor-Plus, Nielsen’s ad tracking service. “The campaign season and the Summer Olympics were two big events that had a tremendous impact on advertising, especially on TV buys.”
The automotive industry’s ad spending fell hardest in 2008. The industry slashed its spending by almost $1.8 billion, or 15.5%. Among the Big Three automakers, Chrysler (Cerberus Capital Management) and Ford Motor Co. cut advertising 31% and 29%, respectively. General Motors trimmed its advertising 15%. Foreign automakers Toyota and Honda each made the top 10, but they, too, slashed their ad spend 7% and 3%, respectively.
| RANK | Product Category | Jan-Dec 2008 (millions) | Jan-Dec 2007 (millions) | % Change |
|---|---|---|---|---|
| 1 | Automotive | $10,016.10 | $11,854.40 | -15.50% |
| 2 | Pharmaceutical | $4,344.10 | $5,325.30 | -18.40% |
| 3 | Auto Dealerships – Local | $4,198.30 | $4,604.60 | -8.80% |
| 4 | Quick Service Restaurant | $4,080.50 | $3,932.80 | 3.80% |
| 5 | Department Store | $3,890.90 | $3,994.20 | -2.60% |
| 6 | Wireless Telephone Services | $3,431.40 | $3,731.60 | -8.00% |
| 7 | Motion Pictures | $3,322.10 | $3,750.60 | -11.40% |
| 8 | Direct Response Product | $2,576.90 | $2,358.90 | 9.20% |
| 9 | Restaurant | $1,618.60 | $1,619.40 | 0.00% |
| 10 | Furniture Stores | $1,580.80 | $1,636.20 | -3.40% |
| Top 10 Product Categories | $39,060.00 | $42,808.10 | -8.80% | |
| source: The Nielsen Company 2009 | ||||
ADVERTISER SPENDING
The top 10 advertisers spent a total of $15.5 billion in 2008 – 15% less than the year before. Not a single one of the top 10 advertisers spent more in 2008 vs. 2007. Procter & Gamble maintained its perch as the top advertiser this year, despite a 19% decline vs. 2007. Detroit’s Big Three automakers held on to spots in the top 10, despite double-digit percentage slashes in their ad budgets.
No fast food parent companies cracked the top 10. But Yum! Brands (11th), parent company of Taco Bell and KFC, spent $5.6 million more on advertising in 2008, while McDonald’s (13th) boosted its ad spend $5 million.
Wal-Mart (19th) showed perhaps the most impressive ad growth in 2008. The retail giant increased its spend 55% over the previous year with $771 million in ad buys.
