US Ad Spending is Growing
Recent figures released by Nielsen show that ad spending is growing in the U.S., though not across all sectors. While automotive-related categories appear to be bouncing back in huge ways, others have seen spending cut back from the same period last year.
The Automotive sector saw the biggest boost in ad spending during the first half of 2010, as companies in that category spent $4.4 billion, up 26.93 percent from the $3.5 billion spent in the same period last year. Meanwhile, the Auto Insurance sector spent $764.2 million in the first two quarters, up 22.62 percent from the $623.2 million spent in the same timeframe in 2009.
Ford boosted its ad spending by 15 percent, while Toyota increased its ad spending by 22 percent. An 82 percent increase in spending by UAW Health Care helped the growth in the Auto Insurance sector, according to Nielsen.
Department Store companies spent $1.6 billion in the first half of the year, up 4.92 percent from the $1.5 billion spent in the first half of last year. Meanwhile, the Restaurant sector doled out $825.0 million in the first half of 2010, up 2.47 percent from the $805.1 million spent in the first half of last year.
Telephone Services – Wireless companies spent $1.5 billion in the first two quarters of the year, down 13.64 percent from the $1.8 billion spent in the first half of 2009. Products – Direct companies spent $828.2 million, down 11.25 percent from the same period last year.
Other sectors that saw year-over-year declines were Pharmaceutical (-4.40 percent), Restaurant – Quick Service (-4.27 percent), Motion Picture (-3.25 percent) and Dealerships (-1.95 percent).
The average increase in advertising money spent around the globe in the first half of 2010 was 12.8 percent. More specifically, North America saw an increase of 4.7 percent, Asia Pacific saw an increase of 12.1 percent, Europe saw a rise of 8.5 percent, Latin America experienced a surge of 44.5 percent and the Middle East/Africa saw an increase of 23.8 percent.
Spanish-Language Network TV was the media type that saw the biggest boost in ad spend (+24.16 percent) in the first half of the year, followed by National Sunday Supplement (+21.55 percent) and Cable TV (+12.96 percent).
Business to Business saw ad spend decline the most (-19.22 percent), followed by Local Sunday Supplement (-12.05 percent) and Local Magazine (-7.72 percent).
Overall, $53.8 billion was spent across all media types (not including the Internet) in the first half of the year, up 3.82 percent from the $51.8 billion spent from January through June of 2009.
According to figures from the IAB, Internet advertising revenues hit $5.9 billion during the first quarter of 2010, up 7.5 percent from the same quarter in 2009.
Borrell Associates expects online ad spending to reach $51.9 billion in 2011, up from this year’s projected total of $45.6 billion.
Yahoo Network is the top advertising network in the U.S. with 85.9 percent reach, according to comScore. It’s followed by AOL Advertising (85.7 percent), Google Ad Network (82.7 percent) and ValueClick Networks (79.8 percent).
Sources:</strong
http://blog.nielsen.com/nielsenwire/global/global-ad-spending-shows-signs-of-growth/
http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-051310
http://www.comscoredatamine.com/2010/10/top-10-ad-networks-in-u-s/
