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Nielsen: U.S. Advertising Spending is Flat in First Quarter
(Wireless News Via Acquire Media NewsEdge)
Advertising spending for the first quarter of 2008 remained essentially
flat compared to the same period last year, according to preliminary
figures released today by Nielsen Monitor-Plus, the competitive
advertising information service of The Nielsen Company.
Advertising was mixed across media with gains in some mediums and
declines in others. Overall despite a continued softening of the
economy, several media and companies are showing healthy growth in
advertising for this quarter. Advertising in National Sunday
Supplements saw the largest growth, with an increase of 19.2 percent
over Q1 2007, while Local Sunday Supplements fared worst among the 17
media tracked by Nielsen, declining by 13.5 percent compared with the
same period last year, it was reported.
Cable TV (+12.9 percent ), Network Radio (+10 percent ), Outdoor (+2.9
percent ) enjoyed healthy advertising growth in Q1 2008, compared with
Q1 2007. In television, programming and networks targeting African
American and Hispanic viewers grew 12.9 percent and 7.7 percent
respectively.
Internet advertising impressions grew by 14.7 percent in the first
quarter of 2008 over the same period in 2007. Sponsored search link
advertising drove overall growth, and rich media led growth in the
display category.
Among online advertisers, the health and telecommunications industries
posted strong increases in sponsored search link impressions, up 108
percent and 80 percent respectively. Hardware and electronics
advertisers drove results in display impressions with 65 percent
growth, followed by automotive and consumer goods companies, who posted
increases of 45 percent and 42 percent respectively.
Financial services companies, historically among the largest online
advertisers, decreased investment during the period in both sponsored
search impressions, down 15 percent , and display impressions, down 13
percent .
Spending for the 10 largest advertising categories reached just over
$10 billion in the first quarter of this year, 0.47 percent less than
the same period last year. Most product categories showed increased
spending, with the exception of Automotive (-8.32 percent ), Motion
Picture (-1.14 percent ), Department Store (-0.44 percent ), and
Telephone Services-Wireless (-0.38 percent ).
The Direct Respond Product category had the largest percentage increase
in advertising spending, at just over 16 percent . At the other end of
the spectrum, the Automotive category, though it remained the top
category spender, showed the largest percentage decrease (-8.32 percent
) from the same period last year.
Advertising spending , according to the study, by the top 10 companies
for the first quarter 2008 reached just over $4 billion-up slightly
(+1.2 percent ) from $3.96 billion during the same time period in 2007.
Half of the top 10 advertisers increased their budgets from Q1 2007 to
the first quarter of this year, while the other half showed decreases.
PepsiCo Inc., which increased ad spending from $253 million in the
first quarter of 2007 to $354 million in Q1 2008, had the largest
percentage increase (+39 percent ). The company showed especially
significant increases in advertising expenditures for its beverages,
including APM, Pepsi Max, G2, Gatorade (including the release of
Gatorade Tiger), Propel water, and Sobe Life Water.
Procter & Gamble, the quarter's largest advertiser, also increased ad
spending significantly (+20 percent ). P&G's Olay, Gillette, Cover
Girl, Crest, and Dawn product lines all showed significant growth in ad
expenditures. Ad spending for P&G's osteoporosis drug, Actonel, also
increased.
At the other end of the spectrum, Ford Motor Co., which cut its
advertising budget from approximately $446 million in Q1 2007 to $330
million in the first quarter of this year, showed the largest
percentage decrease in ad spend (-26 percent ). Although Ford
significantly cut advertising expenditures for larger trucks, SUVs, and
cars, such as the Ford F-Series, Expedition, Land Rover, Cadillac, it
actually increased ad spending for small cars, like the Focus, from Q1
2007 to Q1 2008.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))
Copyright ? 2008 Wireless News
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