Indiantelevision.com Team

(14 September 2007 6:00 pm)

MUMBAI: Total ad expenditure in the US for the first half of the year slipped by 0.3 per cent to $72.59 billion versus the same period, according to data released by TNS Media Intelligence.

TNS Media Intelligence president and CEO Steven Fredericks says, "For the first time since 2001, media advertising expenditures have declined for two consecutive quarters.

"While the protracted downturn in automotive spending has been a prime contributor, the overall results reflect weakness across a wide range of industries and advertisers. Given the uncertainties about near-term economic growth and consumer spending, we expect core ad spending will continue to face challenges during the second half of the year."

Internet display advertising maintained its growth leadership position, registering a 17.7 per cent increase to $5.52 billion in expenditure. Consumer magazines posted a 6.9 per cent gain to $11.50 billion in advertising. Outdoor expenditure were up 3.6 per cent to $1.90 billion and Cable TV followed with a 2.8 per cent increase to $8.38 billion.

Broadcast TV media continued to experience weakness in the second quarter and turned in significant half-year declines. Network TV expenditure fell 3.6 per cent to $11.84 billion, while ad spending on Spot TV dropped 5.4 per cent to $7.29 billion. Syndication TV was down 5.3 per cent to $2.00 billion.

Newspaper and Radio media also saw widening losses during the second quarter. For the half-year period, ad spending in local newspapers plunged 5.7 per cent to $11.09 billion on a reduction of 4.7 per cent in space sold. Marketers lowered their radio advertising budgets by 2.7 per cent, to a total of $5.14 billion.

Extending outwards to the top 50 marketers, a more diversified group representing one-third of the measured ad economy, expenditure was down by 1.6 per cent for the half year, to $23.3 billion. Outside the top 50, the segment which had been a key industry growth driver leading into 2007, spending rose just 0.4 per cent versus last year.

Procter & Gamble maintained its spot atop the rankings with $1,611.8 million in spending, up 1.8 per cent from last year on the strength of an 11.7 per cent increase during the second quarter. National Amusements posted the largest per cent gain among the top 10, up 56.5 per cent to $589.8 million, behind higher spending from its movie studio division.

Telecom firms claimed three of the top ten spots. AT&T expenditure was off 12.5 per cent to $1.2 billion, reflecting difficult comparisons against a very large re-branding campaign from last year. Increased spending behind core wireless businesses contributed to higher outlays at Verizon Communications (up 8.8 per cent, to $1.1 billion) and Sprint Nextel (up 13.5 per cent, to $689.2 million).

General Motors slashed its budgets by over $100 million in the second quarter, marking the fifth consecutive quarter in which expenditures fell by at least 15 per cent. It finished the half year with $958.9 million in spending, a 25.1 per cent decline versus a year ago.

At Time Warner, the virtual elimination of advertising support for the AOL service led to a 7.9 per cent reduction in total advertising, to $793.3 million. Johnson & Johnson spending tumbled by 9.1 per cent, to $725.9 million, on cutbacks across its brand portfolio of health and beauty aids.