TNS Report Shows Ad Revenues Down For Q2, Year-to-Date
September 25, 2008 at 5:22 AM (PT)
TNS MEDIA INTELLIGENCE's latest U.S. ad spending figures show spending overall down 3.7% for second quarter, the steepest quarterly drop since 2001, and 1.6% for the first six months of 2008. Radio showed the second largest drop, 6.5%, trailing only newspapers (7.4%), as all media sectors showed a decline year-to-date except for the Internet, which is up 8% for the year so far.
Among the top-10 advertisers for the first six months of the year, ad expenditures overall declined 3% to $8.4223 billion. PROCTER AND GAMBLE remained atop the list, with VERIZON moving from third to second and AT&T falling from second to fourth. Automotive remained the top category despite an 11.2% drop.
"Advertising expenditures started to contract in MARCH, well before the SEPTEMBER turbulence on WALL STREET renewed concerns about the health of the economy and possible collateral damage to the ad market," said SVP Research JON SWALLEN. "Second-half results, particularly for television media, will be bolstered by the SUMMER OLYMPICS and political elections. However, sustained improvement will most likely depend on a turnaround in consumer spending that rejuvenates corporate profits and encourages marketers to expand their advertising efforts."
"While expenditures are certainly indicative of the challenges being presented by the economy, they also suggest the continuation of the long-term trend of marketing dollars migrating to media such as the internet, cable TV and syndication that provide the ability to more effectively target specific audiences," said CEO DEAN DEBIASE. "With advertising budgets and CMOs under pressure and uncertainties continuing to exist relative to consumer spending, it appears marketers are placing an emphasis upon enhanced efficiencies for their brands and the ability to engage with well-defined audiences to ensure ever greater return on investment."