TNS: Ad Spending Drops Again In Q3, First 9 Months
December 11, 2008 at 12:53 PM (PT)
TNS MEDIA INTELLIGENCE's latest ad spending report for the first nine months of 2008 shows total ad spending off 1.7% year-to-year, with third quarter spending off 2% despite the SUMMER OLYMPICS and political ads. Radio showed the second-steepest drop, off 8.8% for the first nine months of the year, with national off 11.1%, local off 8.8%, and network off 2.6%. Newspapers showed the sharpest decline, off 10% overall, while magazines were down 3.9% and outdoor dropped 0.5%. Internet spending rose 7% and TV was up 2.1%.
"Media ad spending, which began tiptoeing into negative territory in early 2007, has crossed an inflection point in the past six months as the economic downturn has become more widespread," said SVP of Research JON SWALLEN. "Preliminary data from the fourth quarter indicate a further slackening of the overall advertising market. Consumer spending levels, which drive the corporate profits that in turn fund marketing budgets, remain a serious concern and will have a strong influence on the depth and duration of the current difficulties facing advertising."
"By most accounts, the current economic recession will be deep and lengthy and with it will come continuing challenges for the advertising and media industries," said CEO DEAN DEBIASE. "Undoubtedly, these industries will have to make some hard decisions in the coming months, decisions that perhaps had been deferred during periods of growth. But ultimately, this period can be viewed as an opportunity to effect such changes, leading to a leaner and more effective industry in the years ahead."
The top 10 advertisers spent 0.2% less in the first nine months of 2008 than the previous year's corresponding period. The biggest gainers were VERIZON, up to number two with a 12.8% jump, and GENERAL ELECTRIC, up the same percentage in 8th place. AT&T spent 13.7% less and dropped from second to fourth. The biggest category remains automotive, which dropped 13%.