Total expenditures during Q4 2007 fell by 0.1% versus a year ago.
Internet display advertising continued its growth leadership, increasing 15.9% in 2007 to 11.31 billion in expenditures. Consumer Magazines registered a 7.0% gain to 24.43 billion on the strength of higher spending by consumer packaged goods marketers. Cable TV spending surged in the second half and finished 2007 at 17.84 billion, an increase of 6.5%. Outdoor advanced by 4.9% to 4.02 billion.
Among television media, full-year Network TV expenditures declined by 2.0% to 22.43 billion. Spot TV, in the face of difficult comparisons against record-setting levels of 2006 political advertising, plummeted 10.2% to 15.59 billion. Syndication TV fell 1.5% to 4.17 billion.
For the full year, Local Newspapers were down 5.6% to 22.66 billion and aggregate Radio expenditures slipped 3.5% to 10.69 billion. Both media suffered from spending reductions by automotive, media and retail advertisers.
Internet display advertising and Magazines continue to gain share, finishing 2007 at 7.6% and 20.4%, respectively, of total spend. The offsetting share declines have principally come from Newspapers and Radio. Local TV, with its two-year business cycle tied to Olympic and political advertising, has also been edging downwards.
The top 10 advertisers of 2007 spent a combined total of 18.66 billion in measured media, a drop of 0.3% compared to 2006. Fourth quarter spending by this select group was mixed, with three of the 10 registering double digit percentage declines and four of the 10 posting double digit increases.
Among the top 100 marketers, a diversified group representing over 40% of the measured ad economy, 2007 spending fell 2.6%, to 63.35 billion. Outside the top 100, the segment which has been principally responsible for industry growth in recent years, expenditures jumped 2.0%.
Procter & Gamble was again the largest advertiser with 3,486.5 million in spending, up 5.6% versus a year ago. Verizon Communications posted the highest growth rate among the top 10, up 11.1% to 2,136.5 million behind higher spending for its core wireless division and FiOS service. The largest decrease in the group was from GM, where 2007 outlays fell 7.7% to 2,106.4 million. However, aggressive model re-launches from its Chevrolet and Cadillac divisions contributed to a Q4 spending surge of 24.5%.
Expenditures for the 10 largest advertising categories grew a meager 0.9% in 2007, to 74.65 billion. In aggregate, they account for approximately one-half of all measured ad spending.
Financial Services holds the top spot with 9.12 billion of expenditures, a gain of 5.4%. Lower spending by credit card marketers and late-year cutbacks by mortgage and loan advertisers were more than offset by rising budgets from retail banks and investment brokers. Telecom finished the year in second position, down 4.1% to 9.05 billion. Results were impacted by sizable spending reductions from AOL and Vonage.
DR had the largest percent gain among the top categories, up 17.0% to 7.45 billion. Personal Care Products advanced 10.1% to 6.18 billion. In each of these categories, growth was distributed widely across a large number of advertisers.
Automotive expenditures continue to lag. The Domestic Auto segment was down 7.1% to 7.05 billion and Non-Domestic Auto shrunk 6.6%, to 8.12 billion. Automotive spending has now declined for 10 consecutive quarters.
In Q4 an average hour of monitored prime time network programming contained eight minutes, five seconds (8:05) of in-show Brand Appearances and 14:12 of network commercial messages. The combined total of 22:17 of marketing content represents 37% of a prime-time hour.
Unscripted reality programming had an average of 15:39 per hour of Brand Appearances as compared to just 4:47 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows had an average of 14:34 per hour. The combined load of Brand Appearances and network ad messages in these late night shows was exactly 30:00 per hour, or 50% of total content time.
Source: TNS media intelligence
|1.||Figures are based on the TNS media intelligence Stradegy(TM) multimedia ad expenditure database across all TNS MI measured media, including: Network TV; Spot TV (101 DMAs); Cable TV (45 networks); Syndication TV; Hispanic Network TV; Consumer Magazines (210 publications);,Sunday Magazines (5 publications); Local Magazines (28 publications); Hispanic Magazines (29 publications); Business-to-Business Magazines (317 publications); Local Newspapers (144 publications); National Newspapers (3 publications); Hispanic Newspapers (52 publications); Network Radio (5 networks); Spot Radio; Local Radio (34 markets); Internet; and Outdoor. Figures do not include public service announcement (PSA) data.|
|2.||Network TV figures include the WB, UPN, CW and MyTV networks.|
|3.||Spot TV figures do not include Hispanic Spot TV data.|
|4.||Spanish Language TV figures include 4 national networks and 43 local stations.|
|5.||Magazine media includes Publishers Information Bureau (PIB) data.|
|6.||Internet figures are based on display advertising. They do not include paid search or broadband video advertising.|
|7.||Local Radio includes expenditures for 34 markets in the U.S. as provided by Miller Kaplan Arase.|
|8.||FSI data represents distribution costs only.|
|9.||The sum of the individual media may differ from the sub-totals or grand total due to rounding.|