BUT, NETWORK RADIO UP 10%!
NEW YORK, June 16 /PRNewswire/ -- 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% over Q1 2007, while Local Sunday Supplements fared worst among
the 17 media tracked by Nielsen, declining by 13.5% compared with the same
period last year.
Q1 2007 vs. Q1 2008
Media Category % Change
National Sunday Supplement 19.2%
Cable TV 12.9%
African American Television* 12.9%
Network Radio 10.0%
Spanish Language TV* 7.7%
Outdoor 2.9%
Syndication TV 2.3%
Spot TV: Top 100 -0.4%
National Magazine -1.3%
Network TV -3.4%
Spot TV: 101-210 -3.8%
Spot Radio -4.9%
FSI Coupon -4.9%
Local Newspaper -5.4%
National Newspaper -6.2%
B-to-B -6.1%
Local Sunday Supplements -13.5%
Total Advertising Spending 0.5%
Source: Nielsen Monitor-Plus (Jan.-March 2007 and Jan.-March 2008)
* African American Television includes broadcast network, cable, and
syndication programs with an African American audience composition of 50%
or greater, BET, and TV One.
* Spanish Language Television includes broadcast, cable, and station
coverage.
Cable TV (+12.9%), Network Radio (+10%), Outdoor (+2.9%) 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% and 7.7%
respectively.
Internet advertising impressions grew by 14.7% 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% and 80%
respectively. Hardware and electronics advertisers drove results in display
impressions with 65% growth, followed by automotive and consumer goods
companies, who posted increases of 45% and 42% respectively.
Financial services companies, historically among the largest online
advertisers, decreased investment during the period in both sponsored search
impressions, down 15%, and display impressions, down 13%.
Category Spending
Spending for the 10 largest advertising categories reached just over $10
billion in the first quarter of this year, 0.47% less than the same period last
year. Most product categories showed increased spending, with the exception of
Automotive (-8.32%), Motion Picture (-1.14%), Department Store (-0.44%), and
Telephone Services-Wireless (-0.38%).
2008 Q1 2008 Q1 2007
Rank Top 10 Product Categories ($ mil) ($ mil) % change
1 Automotive $2,695.8 $2,940.6 -8.32%
2 Pharmaceutical $1,311.7 $1,310.0 0.13%
3 Auto Dealerships $1,113.7 $1,109.5 0.38%
4 Restaurant-Quick Service $1,028.3 $985.2 4.36%
5 Telephone Services-Wireless $971.9 $975.7 -0.38%
6 Motion Picture $957.3 $968.4 -1.14%
7 Department Store $717.4 $720.6 -0.44%
8 Direct Response Product $670.2 $577.4 16.07%
9 Credit Card Services $473.0 $437.0 8.23%
10 Financial-Investment Services $455.0 $419.2 8.53%
Total: Top 10 Product Categories $10,394.8 $10,444.1 -0.47%
Source: Nielsen Monitor-Plus (Jan.-March 2007 & Jan.-March 2008)
The Direct Respond Product category had the largest percentage increase in
advertising spending, at just over 16%. At the other end of the spectrum, the
Automotive category, though it remained the top category spender, showed the
largest percentage decrease (-8.32%) from the same period last year.
Advertiser Spending
Advertising spending by the top 10 companies for the first quarter 2008
reached just over $4 billion-up slightly (+1.2%) from $3.96 billion during the
same time period in 2007. Half of the top 10 advertisers increased their budgets
from Q1 2007 to the first quarter of this year, while the other half showed
decreases.
2008 Q1 2008 Q1 2007
Rank Top 10 Parent Companies ($ mil) ($ mil) % change
1 Procter & Gamble Co. $902.8 $755.0 19.57%
2 General Motors Corp. $536.5 $493.0 8.81%
3 AT&T Inc. $465.7 $555.4 -16.15%
4 Verizon Communications Inc. $401.4 $399.6 0.43%
5 PepsiCo Inc. $354.8 $253.6 39.86%
6 Toyota Motor Corp. $350.4 $293.7 19.30%
7 Ford Motor Co. $330.2 $446.3 -26.00%
8 Time Warner Inc. $323.7 $350.9 -7.75%
9 Johnson & Johnson $316.0 $354.0 -10.72%
10 Walt Disney Co. $299.9 $332.0 -9.67%
Total: Top 10 Parent Companies $4,281.8 $4,234.1 1.13%
Source: Nielsen Monitor-Plus (Jan.-March 2007 & Jan.-March 2008)
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%). 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%). 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%).
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.