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U.S. ad spend down 14.2% in Q1 2009
June 11, 2009
NEW YORK — Total measured advertising expenditures in the opening quarter of 2009 plunged 14.2 percent versus a year ago, to $30.18 billion, according to data released today by TNS Media Intelligence, a provider of strategic advertising and marketing information. This follows a 9.2 percent decline in Q4 2008 as the advertising recession accelerated in the new year.
"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 Dean DeBiase, CEO, TNS Media. "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."
Ad spending by media
Local media suffered most with aggregate expenditures sinking 25.4 percent in the first quarter of 2009. The rate of decline was similar across Spot TV (-27.5 percent), Local Newspapers (-25.1 percent) and Local Radio (-26.8 percent). Each of these segments was ravaged by deep spending cutbacks in core categories such as automotive, retail and local services.
For national media, combined ad spending fell 8.5 percent versus a year ago. Within this segment, performance was sharply defined along the lines of print vs. television vs. online.National Newspapers (-28.5 percent), B-to-B Magazines (-25.5 percent), Consumer Magazines (-19.2 percent) and other print media were clustered on one track and their revenue declines were driven by fewer ad pages.
Network TV (-4.2 percent), Cable TV (-2.7 percent) and Syndication (+0.2 percent) occupied a middle tier and each of these saw business improve slightly at the end of the quarter, paced by Motion Picture and Restaurant category spending. At an exclusive upper level, Internet display expenditures grew 8.2 percent as telecom, travel and local retail advertisers expanded their online marketing programs.
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