7/27/2019 Media Advertising.pdf

1/5

CONSUMER MARKETING 2010

105

23

MEDIA ADVERTISING

23.1 Market Assessment

According to Kantar Media (www.kantarmedia.com), measured consumer mediaadvertising spending totaled $110.4 billion in 2009, a 12.3% decline from 2008. Thisdrop followed a 9.2% drop in 2008 compared with 2007, when advertising spendingreached an all-time high of $134.3 billion.

Measured media advertising, as defined by Kantar Media, includes multimediaad expenditures for network TV (6 networks); spot TV (123 DMAs); cable TV (71

networks); syndication TV; Hispanic Network TV (4 networks); consumer magazines(231 publications); Sunday magazines (7 publications); local magazines (19publications); Hispanic magazines (14 publications); local newspapers (147publications); national newspapers (3 publications); Hispanic newspapers (47publications); network radio (5 networks); spot radio; local radio (32 markets); andoutdoor advertising. Beyond these specific media venues, there are thousands of smalland local media in the U.S. which attract some advertising dollars.

Total advertising spending includes measured and unmeasured media.Unmeasured media includes local media, which Universal McCann(www.universalmccann.com) estimates to account for 35% of total advertisingspending, and national media sources not tracked by Kantar Media. RKMA estimates

unmeasured media advertising spending as roughly equal to the measured mediamarket. Thus, total consumer advertising spending in 2009 was approximately $220billion.

Measured advertising spending by media in 2009 was as follows (change fromprevious year in parenthesis; source: Kantar Media): Television: $58.3 billion (-9.5%)

- Network: $20.5 billion (-7.6%)- Cable: $17.9 billion (-1.4%)- Spot: $11.5 billion (-23.7%)- Spanish language: $ 3.9 billion (-8.9%)- Syndication: $ 4.1 billion (-4.9%)

Magazines: $20.9 billion (-17.4%)- Consumer: $18.8 billion (-16.6%)- Sunday: $ 1.5 billion (-11.0%)- Local: $ 301 million (-27.7%)- Spanish language: $ 170 million (-21.6%)

http://www.kantarmedia.com/http://www.universalmccann.com/http://www.universalmccann.com/http://www.kantarmedia.com/

7/27/2019 Media Advertising.pdf

2/5

CONSUMER MARKETING 2010

106

Newspapers: $18.6 billion (-19.7%)- Local: $15.9 billion (-20.0%)- National: $ 2.4 billion (-17.8%)- Spanish language: $ 255 million (-16.4%)

Radio: $ 7.6 billion (-20.3%)- Local: $ 5.0 billion (-20.6%)- National spot: $ 1.7 billion (-24.6%)- Network: $ 888 million (-8.7%)

Outdoor: $ 3.4 billion (-13.2%)

Free standing inserts: $ 1.9 billion (3.0%)* Excludes business-to-bus iness and online advertising.

An uptick in ad spending during the fourth quarter of 2009 provided optimismthat the advertising segment will see improvement in 2010. While total advertisingexpenditures fell 12.3% in 2009, the decline during the fourth quarter was only 6.0%.

_________________________________________________________________

The advertising recession began to ease in the

final two months of 2009 and preliminary figures

from the first quarter of 2010when compared

against the abyss of a year agoindicate many

sectors are experiencing growth. Given the

restraint in consumer spending, it appearsmarketers have more confidence right now than

their customers. As we get deeper into 2010,

the pace of consumer activity will be a key

determinant of the strength and durability of the

advertising recovery.

Jon Swallen, Sr. V.P. ResearchKantar Media, 3/17/10

_________________________________________________________________

23.2 Measured Ad Spending By Category

7/27/2019 Media Advertising.pdf

3/5

CONSUMER MARKETING 2010

107

Ten advertising categories account for approximately 60% of all measured adspending. Measured ad spending in 2009 for these categories was as follows (changefrom previous year in parenthesis): Automotive: $10.98 billion (-23.4%) Telecom: $ 8.61 billion (1.6%)

Financial services: $ 7.82 billion (-18.3%) Local services: $ 7.49 billion (-13.2%) Miscellaneous retail:* $ 7.12 billion (-14.8%) Direct response: $ 6.63 billion (-11.5%) Food and candy: $ 6.26 billion (3.5%) Restaurants: $ 5.54 billion (-3.1%) Personal care products: $ 5.53 billion (-8.1%) Pharmaceuticals: $ 4.47 billion (3.9%)

* Miscellaneous retail does not include department stores or home furnishing/building supply stores.

Automotive, the top category, experienced the greatest decline in ad spending in

2009, contributing significantly to the overall drop in ad spending. The categoryincludes auto manufacturers, who cut ad spending 14.6% to $7.18 billion in 2009, andauto dealers, who cut spending 36.0% to $3.80 billion.

23.3 Measured Ad Spending By Advertiser

According to Kantar Media, the top 10 advertisers in 2009 spent a combinedtotal of $16.6 billion in measured media, 0.9% lower compared to their 2008 outlays.

Among the top 50 marketers, a diversified group representing one-third of themeasured ad economy, 2009 spending fell 5.1%, to $42.4 billion. At the other end ofthe spectrum, small advertisersdefined as those ranked outside the top1,000trimmed their collective ad budgets by 20.3%.

Three of the top advertisers posted double-digit increases in ad spending in2009. Walmart upped its budgets by 35.4% behind the launch of its Save Money, LiveBetter campaign. Pfizer spending rose 32.7% as the company boosted marketingsupport for Lipitor ahead of the brands 2011 patent expiration. Sprint Nextel, battlingfor marketshare against its larger wireless rivals, hiked expenditures by 29.9%.

The companies with the highest ad spending in 2009 were as follows (changefrom previous year in parenthesis): Procter & Gamble: $2.71 billion (-15.6%) Verizon: $2.24 billion (-6.9%) General Motors: $2.20 billion (1.3%) AT&T: $1.90 billion (-4.1%) Pfizer: $1.40 billion (32.7%) News Corp.: $1.25 billion (-10.6%) Johnson & Johnson: $1.25 billion (-8.6%) Sprint Nextel: $1.23 billion (29.9%) Time Warner: $1.20 billion (-6.8%)

7/27/2019 Media Advertising.pdf

4/5

CONSUMER MARKETING 2010

108

Walmart: $1.17 billion (35.4%)

7/27/2019 Media Advertising.pdf

5/5

Copyright of Consumer Marketing is the property of Richard K. Miller & Associates and its content may not be

copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written

permission. However, users may print, download, or email articles for individual use.