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Optimism Returns as Ad Spending Increases
By: Jeff Louis
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Optimism is returning to the advertising industry following two straight quarters of increasing revenue and estimates that third quarter 2010 is on pace for growth.

Expenditures are up by 5.7 percent thus far in 2010 compared to a year ago and show a 5.4 percent gain in second quarter. According to research from Kantar Media, “Early figures from the third quarter indicate the advertising expansion is still maintaining its momentum and that is an encouraging sign for the industry.” 

Following a dismal 2009, the return of automotive spending to the airwaves and increased spending in nearly every category show promise, and currently, booked orders for the third and fourth quarter indicate that the year is on pace to end on an upswing. Broadcast TV remained the top medium, and Kantar shows that spot grew 25.1 percent as investments from auto manufacturers and dealers increased; additionally, heated political races tightened station inventories, which led to increased costs on a per-spot basis. The World Cup in the second quarter increased Spanish language TV spends by 14.6 percent; cable television increased almost nine percent, and national network TV grew 7.2 percent for the same period in 2009.  

Not surprisingly, local newspapers lost again. They decreased 4.6 percent in the first half of 2010 and fell one quarter shy of a fifth-straight year of declining ad spend as advertisers search for more engaging mediums. National newspapers, however, showed a 7.1 percent jump, Sunday magazines ("Parade," for example) rose 13.1 percent, and free standing inserts increased 7.1 percent due to aggressive offers and coupons that appealed to budget-minded consumers.

Spending for national spot radio increased by the largest percent in the radio industry, marking a 16.8 percent gain, while local spot increased 25 percent as much, with a gain of 4.2 percent. After dropping during the first two months of the year, consumer magazines rebounded and marked a nominal increase in ad pages of 1.5 percent. Outdoor increased modestly (2.8 percent), and online display ad spends rose (5.3 percent). (Kantar Media does not measure search, mobile, or social media spending).

Please note that this information is from Kantar's measured mediums and does not indicate total ad spending. Thus, while providing a good estimate, the information should be used directionally. 

The top ten spending companies for the first half were Procter &Gamble, AT&T, General Motors, Verizon, Johnson & Johnson, News Corp., Pfizer, Time-Warmer, Toyota, and Ford. Where's BP?

   

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About the Author

Jeff Louis: Media Planner, Brand Project Manager, blogger, and aspiring writer. Please leave a comment or get in touch with Jeff on Twitter. As always, thank you for reading!

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