Total advertisement expenditure in the US in the second quarter
of 2012 increased 0.9 per cent from a year ago and finished the
period at $34.4 billion, according to data released by Kantar Media
a provider of strategic advertising and marketing information. Total
spending for the first six months of the year grew 1.9 percent to
$67.1 billion. The top 10 advertisers included P&G, Comcast,
L'Oreal, Time Warner and News Corp.
Media US chief research officer Jon Swallen said, "Ad spending
growth sputtered during the second quarter and was unable to sustain
its early year momentum. The advertising market is mirroring the
tepid, slow growth performance of the general economy. Third quarter
results will get a short-term boost from the Summer Olympics and
political advertising but sustained long-term improvement will probably
be linked to the health of consumer spending on the goods and services
that marketers provide."
continued to lead the ad market in the second quarter of 2012, with
overall growth of 4.4 per cent. Cable TV expenditures rose by 4.2
per cent and growth was driven by sports programming and networks
with larger audience ratings. Network TV spending was down 0.4 per
cent and comparisons were hurt by a timing shift that moved ad money
for NCAA final four games out of April and into the prior quarter.
TV expenditures increased by 4.6 per cent, lifted by a first wave
of political money that began pouring into a handful of swing states
crucial to the Presidential race. Double digit growth for spot TV
spending in these select geographic areas was a marked contrast
to the 2-3 percent growth rate for all other spot TV markets. Spanish
language TV budgets jumped 17.8 percent on increases from direct
response marketers, consumer package goods and auto manufacturers.
Spending on syndication TV rose 10.0 percent, reflecting a combination
of audience ratings performance and more hours of programming.
were isolated pockets of growth beyond the television sector. Network
radio spending rose 20 per cent but comparisons were inflated by
the addition of more radio programming to Kantar Media's monitoring.
Expenditures in outdoor media rose 2.5 percent, the ninth consecutive
quarter of year-over-year increases, and were spurred by healthy
gains from local retail and service businesses. Internet display
advertising fell 5.4 percent in the second quarter. Spending totals,
which do not include either video or mobile ad formats, were impacted
by a reduced volume of ad impressions with some offset from higher
media continued to lose ground. Ad spending in Sunday magazines
declined 7.6 per cent and consumer magazines dropped 2.6 percent
due to steep cutbacks from pharmaceutical companies and auto manufacturers.
Local newspaper budgets were down 1.9 percent as weaker spending
by financial services, travel and telecom marketers erased increases
from retailers and auto dealers. National Newspapers suffered spending
reductions across key advertising categories as its total expenditures
tumbled 10.7 percent during the quarter.
among the ten largest advertisers in the second quarter of 2012
was $3,578.0 million, a 5.5 percent decrease compared to a year
ago. Among the Top 100 marketers, a diversified group accounting
for more than two-fifths of all measured ad expenditures, budgets
rose 1.1 percent. Lower spending from the top ten group was most
pronounced for a trio of advertisers (AT&T, General Motors,
Procter & Gamble) that had expensive TV sponsorship positions
in the Summer Olympics. Some of their second quarter reductions
represent a deferral of spending into July and August to support
Olympic marketing programs. Because of this timing phenomenon, the
Top Ten advertisers are a less reliable benchmark when analyzing
the Q2 ad marketplace.
& Gamble was the top-ranked advertiser in the period, with measured
spending of $577.3 million, down 13.2 percent. It was the sixth
consecutive quarterly decline for P&G and is consistent with
company announcements that it plans to tighten marketing budgets
and shift more money out of traditional media.
largest percentage drop among the top ten marketers came from General
Motors which slashed its expenditures 30.1 percent, to $291.9million.
GM's annual rate of measured ad spending is now at its lowest level
in over a decade. By contrast, Toyota Motor spent $285.0 million
in the second quarter, an increase of 22.7 percent compared to the
year ago period when operations were severely curtailed by the Japanese
earthquake and tsunami.
expenditures for the two largest telecom marketers continued to
move downward. AT&T expenditures fell 21.0 per cent, to $375.5
million and Verizon cut its media budgets by 14.7 per cent, to $326.9
entered the top ten rankings by spending $278.3 million, a 48.6
per cent jump. The company raised marketing support broadly across
its brand portfolio. Media expenditures at Comcast increased 12.8
percent and reached $469.7 million on higher budgets from its movie
studio division. L'Oreal investments rose 9.0 percent to $377.8
million as the company continued to aggressively support its core
cosmetics and hair care brands.
for the ten largest categories grew 1.3 per cent in the second quarter
of 2012 to $21,248.1 million. Retail was the top category with expenditures
of $3,837.4 million in the period, up just 0.9 per cent versus a
year ago and a sharp slowdown from 8.6 per cent growth in the first
quarter of 2012. Higher spending by department store brands was
offset by declines from home improvement and home furnishing stores.
was the second largest category by dollar volume, with media spending
of $3,373.5 million - a 7.7 per cent increase. Dealer ad budgets
rose 16.8 percent while manufacturers spent 2.2 per cent more. Category
growth was primarily attributable to Toyota and Honda, which could
easily demonstrate growth compared to 2011, when their production
and marketing activities were at a fraction of normal levels due
to the earthquake and tsunami. Apart from Toyota and Honda, aggregate
spending by the rest of the auto industry was flat in Q2. Second
quarter expenditures for Personal Care Products increased 3.8 percent
to $1,897.3 million, paced by competition among leading marketers
of cosmetics, hair care and skin care products. Media investments
within the Restaurant category were up 2.1 percent to $1,525.7 million,
aided by major repositioning campaigns from Burger King and Wendy's.
ad expenditures were down by 2.4 per cent to $1,990.9 million. Category
performance remains divided, with advertising budgets from wireless
service providers wilting under the weight of slowing subscriber
growth and rising capital investments for upgrading networks while
TV service providers continue to raise their media budgets.
spending in the Financial Services category turned sluggish during
the second quarter, falling by 3.4 per cent to $1.9 billion on reductions
from credit card issuers and ongoing weakness within the Consumer
an extended run-up that began during the 2009 recession, expenditures
for Food & Candy are now steadily falling back. Q2 continued
the pattern as spending dropped 5.5 percent to $1,538.9 million.