Report from MarketingCharts.com shows spending and consumption down year over year in print from 2010 to 2011.
From MarketingCharts.com. Full story here
Total US advertising expenditures in the first 9 months of 2011
increased 1.5% from a year ago, finishing the period at $104.7 billion, according to
December 2011 data from Kantar Media. Spending growth slowed during Q3,
up 0.4% compared to last year, after rising 4.1% in Q1 and 2.8% in Q2.
Spending among the 10 largest advertisers in the first 9 months of 2011
was $11.8 billion, representing a 1.4% decline compared to a year ago.
Procter & Gamble maintained its top-ranked position with spending
of $2.1 billion through September, down 5.6% compared to last year,
although its Q3 spending was flat compared to the previous year.
Meanwhile, expenditures for the 10 largest categories grew 3.1% in
the first 9 months of 2011, to $59.5 billion. For Q3, the aggregate
increase was 1.8%, although quarterly growth rates for 7 of the 10
categories trailed their year-to-date average. Automotive was the top
category with $9.9 billion of spending during the 9-month period, up 7%
from 2010. However, the bulk of the gain came early in the year, and
from April through September automotive budgets have grown just 1%.
TV Ad Spending Rises
Most forms of TV displayed spending gains in Q3: expenditures on
cable networks rose 6.5% during Q3, while year-to-date outlays grew
9.9%. Network TV registered its first quarterly gain of the year, as Q3
expenditures inched up 0.2%, although year-to-date expenditures remain
down 5.7%. Kantar insight suggests higher budgets from movie studios and
consumer package goods marketers accounted for the Q3 increase for
network TV, while the year-to-date decline can be attributed to the loss
of marquee college football and basketball programming to cable
networks in Q1.
Meanwhile, ad spending in Spanish Language Television jumped 18%
during Q3 2011 compared to Q3 2010, while syndication TV was also up
14.8% for the period. The only TV segment to lose ground was spot TV,
where spending fell 5.7% year-over-year in Q3, and was also down 2.7%
for the year-to-date.
Overall, compared to the corresponding periods in 2010, TV ad spending grew 2.3% for the year-to-date, and 3.2% for Q3.
The top 10 TV advertisers, led by Procter & Gamble, spent $7.3
billion in the medium during the first 9 months of 2011, up 0.1% from a
year ago. The group accounted for 15% of total TV expenditures by all
Most Other Media Also Post Gains
Outdoor spending slowed during the third quarter, but still
registered gains of 3.2% for Q3 and 8.6% for the first 9 months. The
pace of spending in radio media was more muted, but remained steady, up a
modest 1.1% in Q3 and 1.2% for the year-to-date, driven by over 2%
growth in local radio and network radio advertising.
Magazine media spending declined 1.2% for Q3, but rose 1.5% for the
year-to-date. The top 10 magazine advertisers invested $2.7 billion in
the medium for the year-to-date, a decrease of 2.8%. As a proportion of
total magazine ad spending by all advertisers, the top 10 accounted for
Although the internet sector posted a Q3 drop of 2.9% compared to
last year, overall expenditures for the year-to-date are up 2.8%
compared to a year earlier. Display ad expenditures soared 15.8% in Q3
and 10.1% for the year-to-date, offsetting paid search drops of 14.4%
and 2.1%, respectively. The 10 largest internet advertisers, led by
General Motors, invested a total of $1.8 billion in paid search and
display campaigns, up 11.1% versus a year ago, and accounting for 10.8%
share of all internet ad dollars.
Newspapers Fare Poorly
The newspaper sector posted the worst figures of all media,
experiencing a 3.7% decline in spending in Q3 2011 compared to Q3 2010,
and 3.8% decrease for the year-to-date. Local newspapers, despite robust
budgets from local auto dealers and an uptick in financial advertising,
saw a 4.4% spending decline in Q3, and were down 3.9% year-to-date.
Print Media Get Spending, Lack Consumption
Meanwhile, according to December figures from eMarketer, although newspapers account for 15% of all US ad spending in 2011,
they hold just a 4% share of adults’ daily media time. Magazines also
hold a much larger share of ad spending than daily media time, at 9.7%
and 2.8%, respectively.
By contrast, eMarketer estimates that mobile accounts for 10.1% share
of adults’ media time each day, but less than 1% of ad dollars. TV
(42.5% vs. 42.2%), internet (25.9% vs. 21.9%), and radio (14.6% vs.
10.9%) all also display a higher share of adults’ daily time than share
of US ad spending.
eMarketer notes that time spent with the internet excludes internet
access via mobile, but online ad spending includes mobile internet ad
spending. As such, the total of the ad spending share for all the media
adds up to more than 100%.