TNS: Radio Ad Spending Fell 26.2% In Q1
June 11, 2009 at 5:03 AM (PT)
Radio ad expenditures fell 26.2% in first quarter, according to TNS MEDIA INTELLIGENCE's latest report, with local radio off 26.8%, national spot radio plummeting 31.7%, and network radio down 11.2%.
Total ad expenditures in the quarter dropped 14.2% to $30.18 billion following third quarter's 9.2% drop. Television fell 9.7%, magazines were off 20.5%, newspapers were down 25.5%, and outdoor fell 14.6%. Internet ad sales, the only category to rise, grew 8.2%.
"The ad market declined significantly in the first quarter, overtaken by a collapsing economy which prompted consumers and marketers alike to shut their wallets and conserve,” said JON SWALLEN, SVP Research. "While there are hopeful signs of general economic indicators bottoming out, the advertising sector still appears to be lagging behind. Available data from second quarter shows ad expenditures tracking on a comparable plane to recent months."
"Given the struggling economy and the historic challenges being faced by key industry sectors such as automotive and financial services, and certain media categories, a decline in Q1 ad expenditures, while significant, is not wholly unexpected," said CEO DEAN DEBIASE. "But as has traditionally been seen in recessionary periods, some sectors and brands are approaching a depressed marketplace as an opportunity to gain share and are increasing spending accordingly. The advertising industry, too, while struggling, is understanding this is a period for innovation and we are seeing efforts to reboot their approach through the advent of new technologies and tools such as addressable advertising, and the first steps to integrating ad measurement in a synergistic manner across all media platforms."
PROCTER AND GAMBLE remained the largest overall advertiser, despite cutting spending 17.8%, with VERIZON, AT&T, a pre-bankruptcy GENERAL MOTORS, and JOHNSON AND JOHNSON next. Automotive continued as the largest category but dropped 28.4%.