Total
advertising expenditures fell 12.3 percent in 2009 to $125.3
billion as compared to 2008, according to data released today
by Kantar Media, the leading provider of strategic advertising
and marketing information. Fourth quarter 2009 ad spending
was off 6.0 percent against the year ago period, with nearly
all media improving upon their January-September performance.
“The advertising recession began to ease in the final
two months of 2009 and preliminary figures from the first
quarter of 2010, when compared against the abyss of a year
ago, indicate many sectors are experiencing growth,”
said Jon Swallen, SVP Research at Kantar Media. “Given
the restraint in consumer spending, it appears marketers have
more confidence right now than their customers. As we get
deeper into 2010, the pace of consumer activity will be a
key determinant of the strength and durability of the advertising
recovery.”
Measured Ad Spending By Media
Internet display advertising expenditures increased 7.3
percent in 2009, aided by sharply higher spending from the
telecom, factory auto and travel categories. The only other
media type achieving full-year growth was Free Standing
Inserts, up 3.0 percent as CPG marketers targeted value-conscious
shoppers with couponing programs.
National TV media continued to outperform the overall ad
market. Cable TV expenditures dropped just 1.4 percent,
helped by an expanding amount of commercial time. Network
TV (-7.6 percent) and Spanish Language TV (-8.9 percent)
each saw year-end improvement in key categories that lifted
their results. By contrast, Spot TV lagged far behind with
a 23.7 percent spending drop versus a 2008 period that was
bolstered by record amounts of political advertising.
Print media were hit by large reductions across a broad
range of advertisers. Measured ad spending in the Newspaper
sector plunged by 19.7 percent in 2009. Sunday Magazine
expenditures declined 11.0 percent and Consumer Magazines
were down 16.6 percent.
Top Ten Advertisers:
Jan-Dec 2009 vs. Jan-Dec 2008
Company 09 ($M) 08($M) %
Change
...........COMPANY ........................2009
($M).....................2008 ($M).........% Change
1. Procter & Gamble Co............
.....$2,714.3 ......................$3,217.1..............
-15.6%
2. Verizon Communications Inc...... $2,238.2
.......................$2,403.4 ...............-6.9%
3. General Motors Corp .................$2,197.5
.......................$2,168.3 ...............1.3%
4. AT&T Inc.................................
.$1,904.4....................... $1,986.0................-4.1%
5. Pfizer Inc .................................$1,397.4
.......................$1,052.8................ 32.7%
6. News Corp ..............................$1,252.2
........................$1,401.3 ..............-10.6%
7. Johnson & Johnson ...................$1,250.4
.......................$1,368.6 ...............-8.6%
8. Sprint Nextel Corp .....................$1,227.1
......................$944.8 ..................29.9%
9. Time Warner Inc .......................$1,204.8
......................$1,292.9 ...............-6.8%
10. Wal-Mart Stores Inc ................$1,169.6
......................$864.1 .................35.4%
.............................TOTAL ............$16,556.1.....................$16,699.2..............-0.9%
Measured Ad Spending by Category
Expenditures for the 10 largest advertising categories
fell 10.7 percent in 2009 and totaled $70,739.4 million.
Automotive was the top category with total spending of $10,977.6
million, down 23.4 percent from the prior year. Fourth quarter
figures were markedly brighter, a decline of just 0.9 percent.
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 percent. 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 percent 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 percent 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
.Rank....... Category................2009
(M).....................2008 (M)................ % Change
1 ...........Automotive............. $10,977.6
...................$14,338.9.....................-23.4%
• (Manufacturers)..................($7,175.5) ...................($8,400.9)
....................(-14.6%)
• (Dealers) ...........................($3,802.1)
...................($5,938.0) ....................(-36.0%)
2 Telecom ...........................$8,606.8
......................$8,470.1 .......................1.6%
3 Financial Services .............$7,820.1
......................$9,572.1 .....................-18.3%
4 Local Services ..................$7,490.9
......................$8,628.0 ......................-13.2%
5 Miscellaneous Retail2 .......$7,124.7
......................$8,361.7 ......................-14.8%
6 Direct Response ..............$6,626.5
.......................$7,489.9 .....................-11.5%
7 Food & Candy .................$6,261.0
.......................$6,046.8 .......................3.5%
8 Restaurants ....................$5,541.2
........................$5,718.7 ......................-3.1%
9 Personal Care Products ...$5,538.9 ........................$6,026.6
......................-8.1%
10 Pharmaceuticals ...........$4,751.8 ........................$4,575.0
.......................3.9%
..................TOTAL ...........$70,739.4 .......................$79,228.0
...................-10.7%
Branded Entertainment
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 percent 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 percent
of total content time.
Brand Appearances vs. Advertising:
Q4 2009
(minutes:seconds per hour)
...........................................Brand
Appearances .......Network Ad Messages1 ..........TOTAL
PRIME TIME NETWORK .................8:36
..............................14:05 .........................22:41
Unscripted Programs .....................15:15 ..............................14:06
.........................29:21
Scripted Programs ..........................5:26 ...............................14:05
........................19:31
LATE NITE NETWORK
(Kimmel, O’Brien, Letterman) .........12:10 ...............................15:51
........................28:01
About Kantar Media
Established in more than in 50 countries, Kantar Media
enables exploration of multimedia momentum through analysis
of print, radio, TV, internet, social media, and outdoors
worldwide. Kantar Media offers a full range of media insights
and audience measurement services through its global business
sectors – Intelligence, Audiences and TGI & Custom.
Combining the deepest expertise in the industry, Kantar
Media tracks more than 3 million brands and delivers insights
to more than 22,000 customers around the world. (www.KantarMediaNA.com).
About Kantar
Kantar is one of the world's largest insight, information
and consultancy networks. By uniting the diverse talents
of its 13 specialist companies, the group aims to become
the pre-eminent provider of compelling and inspirational
insights for the global business community. Its 26,500 employees
work across 95 countries and across the whole spectrum of
research and consultancy disciplines, enabling the group
to offer clients business insights at each and every point
of the consumer cycle. The group’s services are employed
by over half of the Fortune Top 500 companies.
For further information, please visit us at www.Kantar.com
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