Advertising: Gains and Declines According to Nielsen
By John Eggerton -- Broadcasting & Cable, 6/12/2007 9:08:00 AM
Overall ad spending was down slightly (.06%) in the first quarter of 2007 versus the same quarter in 2006, according to just-released Nielsen numbers. The decline was thanks, in part, to an almost half a billion-dollar drop in auto advertising.
Network TV saw an 8% decline, but Nielsen pointed out the 2006 figure included the Torino Winter Olympics. If you took the Olympics out of the equations, they remind, the first-quarter numbers would actually be up.
Syndicated TV and network and spot radio saw a decline with Spot TV taking divergent paths--ad spending up in the smaller markets and down in the larger.
After network TV, the categories showing declines were local newspapers (down 6.6%) national newspaper (-4.9%) syndicated TV (-4.5%) local magazine ( -4.1%) spot TV, top 100 markets (-3.7%) network radio (-2.2%) and national Sunday supplements (-1.2%.)
Helping drive down ad spending on network TV was that nine out of the top 10 advertisers cut their budgets from first-quarter 2006, with only Daimler-Chrysler increasing its ad spending. And what is bad for General Motors was bad for ad spending. The car company's spending was down a whopping 35% from $763 million to $489 million. There were a number of other double-digit downturns including AT&T, down 22.4% to $450.1 million and Johnson & Johnson and Time Warner, both down about 17% to $348.1 million and $325.3 million, respectively.
The biggest dollar decline came in the ad category at a total of $492 million.
Internet spending was up 31.9% quarter-to-quarter. That category was followed by national magazines (up 6.5%) spot TV in the 100-plus markets (up 4.1%), Spanish-language TV (up 4 %) national cable TV (up 2.5 %) spot radio (up. 1.4 %) local Sunday supplements (up .9%) and, lastly, outdoor which showed modest gains of .8%.
After network TV, decliners in order were local newspaper, down 6.6%; national newspaper, -4.9%; syndicated TV, -4.5%, local magazine -4.1%; spot TV, top 100 markets, -3.7%; network radio, -2.2%; and national Sunday supplemenst, -1.2%.
Helping drive down ad spending on network TV was that nine out of the top 10 advertisers cut their budgets from first-quarter 2006, with only Daimler-Chrysler increasing its ad spending. And what is bad for General Motors was bad for ad spending. The car company's spending was down a whopping 35% from $763 million to $489 million. There were a number of other double-digit downturns including AT&T, down 22.4% to $450.1 milliion and Johnson & Johnson and Time Warner, both down about 17% to $348.1 million and $325.3 million, respectively.
The biggest dollar decline came in the ad category at a total of $492 million.
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