U.S. Ad Spending Fell 2.6% in 2008
March 13, 2009 at 7:01 AM (PT)
THE NIELSEN COMPANY reported TODAY (3/13) that U.S. advertising for the full year 2008 was down 2.6% compared to the full year 2007. According to preliminary figures from NIELSEN, U.S. ad expenditures declined almost $3.7 billion to a total spend of $136.8 billion in 2008.
Hispanic Cable TV (+9.6%) and Cable TV (+7.8%) were the only two media to show ad growth in 2008. Cable was the highest revenue-generating medium with $26.6 billion in sales.
Network Radio was down 3.3%, Spot Radio down 4.0%.
"Given the state of the U.S. economy, a decline in ad spending was expected, but it's not as bad as it could have been," said MONITOR-PLUS VP/Sales Development ANNIE TOULIATOS. "The campaign season and the SUMMER OLYMPICS were two big events that had a tremendous impact on advertising, especially on TV buys."
The top-10 advertisers spent a total of $15.5 billion in 2008, 15% less than the year before. Not a single one of the top-10 advertisers spent more in 2008 vs. 2007. PROCTER & GAMBLE maintained its perch as the top advertiser this year, despite a 19% decline vs. 2007.
DETROIT's Big Three automakers held on to spots in the top 10, despite double-digit percentage slashes in their ad budgets. CERBERUS CAPITAL MANAGEMENT (CHRYSLER) and FORD MOTOR CO. cut advertising 31% and 29%, respectively. GENERAL MOTORS trimmed its advertising 15%. Foreign automakers TOYOTA and HONDA each made the top 10, but they, too, slashed their ad spend 7% and 3%, respectively.
The automotive industry's ad spending fell hardest in 2008. The industry slashed its spending by almost $1.8 billion, or 15.5%.
Pharmaceuticals also cut back its spending significantly, declining 18% and almost $1 billion compared to 2007. Quick Service Restaurants, however, was the only category in the top 5 to spend more in 2008, with 3.8% more expenditures in 2008. Direct Response placed 8th, having grown its ad spend 9.2%, thanks to increased spending by companies like VIDEO PROFESSOR (+389%), ALLSTAR MARKETING (+318%) and ROSETTA STONE (+73%).