Total advertising spend in the first six months of 2011 increased 3.2% from a year ago and finished the period at $71.5 billion, according to Kantar Media. Spending growth eased slightly during Q2 and was up 2.8% compared to last year.
Spend on cable networks increased 11.8% during the first half of the year while network TV spending fell 7.6%. One factor shaping these results was the shift of BCS college football bowl games and NCAA Men’s Basketball Tournament programming from broadcast networks to cable, producing a large, one-time transfer of ad dollars. Supplementing this was a reallocation of TV budgets from network to cable within the prescription drug, financial service and consumer package goods categories.
Syndication TV spend was up a whopping 18.5%, reflecting more hours of monitored programming and larger budgets from auto insurers and consumer package goods marketers. Spanish Language TV had a 1.7% increase in first-half spending as declines from bellwether telecom advertisers were offset by expanded budgets from a few financial service providers. Outlays on Spot TV fell by 0.9%, reflecting weakness from the telecom category and a slowdown in Q2 spending by auto manufacturers.
The pace of spending in Radio remained soft throughout the first half. Local Radio was up 2.4% compared to a year ago and National Spot Radio fell by 1.6%.
Internet accounted for more than one-half of the dollar gain in total ad expenditures during the first six months of the year. Display spending jumped 12.9% and search investments rose 8.6% as each benefitted from a surge of money from the travel, local service and insurance categories.
Outdoor (+11.8%) was paced by healthy increases from local service businesses, banks and TV media outlets. Consumer Magazine ad spending pulled back in Q2 and finished the half year period up 4.0%. Prescription drug advertising in magazines picked up during the spring months but these gains were neutralized by cutbacks from auto manufacturers.
Newspaper media continued to lag the overall market, dragged down by National Newspapers (-4.9%) and Spanish Language Newspapers (-5.9%). However, the Local Newspaper segment ended its streak of 22 consecutive quarters of spending declines and eked out a 2.5% increase in Q2 and a 0.6% gain for the half year.
Percent Change in Measured Ad Spending1
— Media Type
(Sectors and types listed in rank order of spending)
|Jan – June
2011 vs. 2010
— Cable TV2
|— Network TV||-7.6||%|
|— Spot TV3||-0.9||%|
|— Spanish Language TV4||1.7||%|
|— Syndication – National||18.5||%|
|— Paid Search5||8.6||%|
|— Consumer Magazines||4.0||%|
|— B-to-B Magazines||1.4||%|
|— Sunday Magazines||-7.6||%|
|— Local Magazines||-0.7||%|
|— Spanish Language Magazines||29.0||%|
|— Local Newspapers||0.6||%|
|— National Newspapers||-4.9||%|
|— Spanish Language Newspapers||-5.9||%|
|— Local Radio8||2.4||%|
|— National Spot Radio||-1.6||%|
|— Network Radio||1.6||%|
Source: Kantar Media
1. Figures are based on the Kantar Media Stradegy™ multimedia ad expenditure database across all measured media, including: Network TV (5 networks); Spot TV (125 DMAs); Cable TV (71 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (204 publications); Sunday Magazines (8 publications); Local Magazines (29 publications); Hispanic Magazines (18 publications); Business-to-Business Magazines (332 publications); Local Newspapers (142 publications); National Newspapers (3 publications); Hispanic Newspapers (46 publications); Network Radio (5 networks); National Spot Radio (205 markets); Local Radio (32 markets);Internet search (Google search engine); Internet display (2,087 sites monitored at least one year); and Outdoor. Figures do not include public service announcements (PSA) or house advertising
2. Cable TV figures based on 67 English language networks and do not include any Hispanic cable networks
3. Spot TV figures based on 662 English language stations and do not include any Hispanic stations
4. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable network and 71 local Hispanic TV stations
5. Internet search figures reflect paid activity on Google
6. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications
7. Newspaper media figures reflect print editions of publications
8. Local Radio includes expenditures for 32 markets in the U.S.
9. FSI data represents distribution costs only
Measured ad spending by advertiser
Spending among the ten largest advertisers in the first six months of 2011 was $8,218.4 million, a 0.5% decrease compared to a year ago. Among the Top 100 marketers, a diversified group accounting for more than two-fifths of all measured ad expenditures, budgets rose a miniscule 0.8%.
Procter & Gamble maintained its top-ranked position with spending of $1,382.8 million, down 7.8%. The company has been shifting budgets into Spanish language media and Internet display at the expense of Consumer Magazines, Network TV and Cable TV.
AT&T was the second largest advertiser for the half year period with expenditures of $1,129.5 million, a decline of 2.6%. Since the March 2011 announcement of its agreement to purchase T-Mobile, AT&T ad spending has slowed sharply. At competitor Verizon Communications, first-half ad budgets were $808.7 million, a decrease of 22.5% and the biggest percentage decline among the Top Ten marketers.
Whereas four automotive manufacturers landed in the Top Ten for the first quarter, only two accomplished that feat for the half year interval. Chrysler Group hiked ad budgets by 58.7% to $621.1 million, the largest rate of increase among the Top Ten. Spending was bolstered by several marketing introductions for new and redesigned models. General Motors reduced its six-month expenditures by 13.3%, to $924.6 million. The proportion of GM’s ad budget earmarked towards passenger cars, as opposed to SUVs and pickups trucks, continues to expand and is now at its highest level in more than four years.
L’Oreal investments rose 25.0% to $626.3 million. Comcast (+35.1% to $884.5 million) and Time Warner (+6.7% to $618.2 million) also upped their ad budgets. Results for both companies were driven by their movie studio divisions.
Top Ten Advertisers Of Jan-June 20111
|1||Procter & Gamble Co||$||1,382.8||$||1,500.6||-7.8||%|
|3||General Motors Corp||$||924.6||$||1,066.3||-13.3||%|
|5||Verizon Communications Inc||$||808.7||$||1,043.9||-22.5||%|
|8||Chrysler Group Llc||$||621.1||$||391.5||58.7||%|
|9||Time Warner Inc||$||618.2||$||579.3||6.7||%|
|10||Johnson & Johnson||$||589.6||$||707.2||-16.6||%|
Source: Kantar Media
1. Figures do not include FSI, House Ads or PSA activity
2. The sum of the individual companies can differ from the total shown due to rounding
Measured ad spending by category
Expenditures for the ten largest categories grew 4.8% in the first half of 2011 to $40,982.7 million.
Automotive was the top category with $6,870.2 million of spending in the six month period, up 9.3%. However, after a torrid first quarter auto marketers hit the brakes and Q2 expenditures inched forward by only 0.8%. It was a complex environment with Toyota and Honda suffering post-earthquake inventory disruptions; wavering consumer confidence; reduced marketing incentives from manufacturers; and a slowing rate of new vehicle sales across the industry.
The Local Services category had the strongest rate of growth among the Top Ten with a 10.0% increase to $4,876.6 million. This performance is consistent with the category’s weighting towards mid-sized advertisers, a segment that has been spending robustly.
Escalating competition among credit card marketers was the catalyst for a 5.6% jump in Financial Services expenditures, to $4,647.7 billion. The Travel & Tourism category entered the Top Ten with outlays of $2,927.1 million (+6.0%) as marketers launched campaigns targeting the peak spring and summer travel seasons.
After an extended run-up, expenditure growth rates for package goods categories are falling back. Food & Candy was down 1.1% to $3,268.7 million. Ad spending for Personal Care Products slowed in Q2 but still finished the half year up 9.9% to $3,253.1 million.
Top Ten Advertising Categories Of Jan-June 20111
|6||Food & Candy||$||3,268.7||$||3,306.2||-1.1||%|
|7||Personal Care Products||$||3,253.1||$||2,961.1||9.9||%|
|10||Travel & Tourism||$||2,927.1||$||2,760.1||6.0||%|
Source: Kantar Media
1. Figures do not include FSI or PSA activity
2. Miscellaneous Retail excludes these retail segments: Department Stores, Home Furnishing & Building Supply Stores
3. The sum of the individual categories can differ from the total shown due to rounding
Finishing just outside the Top Ten in dollar volume but with the largest gain of any category was Insurance. Spending leaped 25.2%, propelled by a select group of auto insurers intensifying their battle for market share. Their need for differentiated and winning messages led to a variety of brand positions around the selling points of price, policy features and customer service.
Top spending advertisers within select media
The top ten TV advertisers spent $5,165.5 million in the medium during the first half of 2011, down 1.7% from a year ago. This group accounted for 15.7% of total TV expenditures by all advertisers.
Top Ten Television Advertisers1 Of Jan-June 2011
|2||Procter & Gamble Co||$||762.7||-11.3||%|
|3||General Motors Corp||$||570.3||-7.7||%|
|5||Verizon Communications Inc||$||478.1||-22.0||%|
|6||Chrysler Group Llc||$||461.4||60.3||%|
|7||Johnson & Johnson||$||431.7||-15.2||%|
|8||Ford Motor Co||$||410.8||0.8||%|
Source: Kantar Media
1 Figures do not include PSA activity
2 The sum of the individual companies can differ from the total shown due to rounding
The ten largest Internet advertisers invested a total of $1,323.5 million in search and display campaigns, up 24.9% versus a year ago. Despite fragmentation on the web, the group accounted for 11.1% share of all Internet ad dollars. The three leading wireless telecom providers each made the list along with a pair of financial advertisers.
Top Ten Internet Advertisers Of Jan-June 2011
(Display + Search)
% Change vs
|2||Verizon Communications Inc||$||162.0||67.5||%|
|3||Experian Group LTD||$||160.5||-6.0||%|
|4||General Motors Corp||$||158.5||52.2||%|
|7||Sprint Nextel Corp||$||116.1||-18.9||%|
|9||Procter & Gamble Co||$||97.5||32.8||%|
Source: Kantar Media
1. The sum of the individual companies can differ from the total shown due to rounding