Despite Overall Uptick, Local Radio Ads Down 3.8%, National Down 13.9% Reports Kantar Media
Network Radio The Lone Positive For The Business
March 13, 2012 at 3:55 AM (PT)
Total advertising expenditures increased 0.8% in 2011 and finished the year at $144.0 billion, according to data released TODAY by KANTAR MEDIA. Ad spending during the fourth quarter of 2011 dropped 1% versus the year ago period, the first quarterly decline since the end of 2009. Since reaching a post-recession peak in Q3 2010, advertising growth rates have slowed sequentially for five consecutive quarters.
"The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011," said SVP/Research NORTH AMERICA JON SWALLEN. "Some mature digital media formats were also touched by the year-end tide of reduced spending. Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly towards emerging and unmeasured digital platforms bears watching as 2012 unfolds."
The pace of spending in Radio media sagged, noted KANTAR. Local Radio expenditures were down 3.8% and National Spot Radio plummeted 13.9% in the fourth quarter. The telecom, financial service and automotive categories were prime contributors to these quarterly decreases. Network radio showed gains, with a 4.3% increase in Q4.
Ad expenditures for measured digital media declined in the fourth quarter. Paid Search budgets were 6.4% lower versus a year ago with continuing reductions from financial, insurance and local service advertisers. Display investments decreased 5.9% in Q4, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, Paid Search declined 2.8% and Display increased 5.5%.