Advertising expenditures dropped 2.6% overall last year, according to data released today by The Nielsen Company. “Given the state of the U.S. economy, a decline in ad spending was expected, but it’s not as bad as it could have been,” said Annie Touliatos, VP of Sales Development for Monitor-Plus, Nielsen’s ad tracking service. “The campaign season and the Summer Olympics were two big events that had a tremendous impact on advertising, especially on TV buys.”
The automotive industry’s ad spending fell hardest in 2008. The industry slashed its spending by almost $1.8 billion, or 15.5%. Among the Big Three automakers, Chrysler (Cerberus Capital Management) and Ford Motor Co. cut advertising 31% and 29%, respectively. General Motors trimmed its advertising 1%.
Pharmaceuticals also cut back its spending significantly, declining 18% and almost $1 billion compared to 2007. Quick Service Restaurants, however, was the only category in the top 5 to spend more in 2008, with 3.8% more expenditures in 2008.
| RANK | Product Category | Jan-Dec 2008 (millions) | Jan-Dec 2007 (millions) | % Change |
|---|---|---|---|---|
| 1 | Automotive | $10,016.10 | $11,854.40 | -15.50% |
| 2 | Pharmaceutical | $4,344.10 | $5,325.30 | -18.40% |
| 3 | Auto Dealerships – Local | $4,198.30 | $4,604.60 | -8.80% |
| 4 | Quick Service Restaurant | $4,080.50 | $3,932.80 | 3.80% |
| 5 | Department Store | $3,890.90 | $3,994.20 | -2.60% |
| 6 | Wireless Telephone Services | $3,431.40 | $3,731.60 | -8.00% |
| 7 | Motion Pictures | $3,322.10 | $3,750.60 | -11.40% |
| 8 | Direct Response Product | $2,576.90 | $2,358.90 | 9.20% |
| 9 | Restaurant | $1,618.60 | $1,619.40 | 0.00% |
| 10 | Furniture Stores | $1,580.80 | $1,636.20 | -3.40% |
| Top 10 Product Categories | $39,060.00 | $42,808.10 | -8.80% | |
| source: The Nielsen Company 2009 |
Cable TV was one of only two media (along with Hispanic Cable TV) whose ad spend showed growth in 2008. Its 7.8% jump in 2008 accounted for almost $2 billion in additional revenue for cable networks. Meanwhile, Network TV ad revenue declined 3.5% in 2008.
Print media continued its anticipated decline in 2008. Local and National Newspaper ad spends declined 10.2% and 9.6%, respectively. National Magazines fell 7.6%, while Local Magazines dropped 3.7%.
Procter & Gamble maintained its perch as the top advertiser this year, despite a 19% decline vs. 2007.
To see the full release from The Nielsen Company, including a media breakout and top advertising companies, click here.
