Kantar Media Reports U.S. Ad Expenditures Declined 3.9% in Q2 2015 to $38 Billion
September 16, 2015 at 5:53 AM (PT)
Total U.S. advertising expenditures declined 3.9% in the second quarter of 2015 to $38.0 billion, according to data released today by KANTAR MEDIA. During the first six months of 2015 ad spending fell by an identical 3.9%.
“The prevailing view of the advertising market has become more tempered as the lethargic pace of spending has continued deeper into the year,” said Chief Research Officer JON SWALLEN. “Measured ad growth is on track to lag nominal GDP for the fifth consecutive year since emerging from the Great Recession, a streak that might have once seemed unimaginable but now would seem to be par for the course.”
Among Radio platforms, Local Radio ad spending in Q2 was up 10.6% within the 36 markets monitored by KANTAR MEDIA. This includes the impact of a nearly 2% increase in ad time. These markets represent slightly under one-half the U.S. population and the footprint may affect direct comparisons with external estimates of radio industry ad revenue that are based on Total U.S.
Digital platforms had mixed results. Ad spending for Paid Search, which reflects text ads on GOOGLE and BING delivered to desktop PCs and tablets, grew 7.7%. Major categories with large increases included retail, auto dealers and travel. Expenditures for Online Display, which does not include video or mobile ad formats, were 4.7% lower in Q2. Lower CPMs and reduced page traffic contributed to the spending declines.