NEW YORK --- The Nielsen Company
reported today that U.S. advertising for the full year 2008 was down 2.6%
compared to the full year 2007. According to preliminary figures from Nielsen,
U.S. ad expenditures declined almost $3.7 billion to a total
spend of $136.8 billion in 2008.
Hispanic Cable TV (+9.6%) and Cable TV (+7.8%) were the only two media to
show ad growth in 2008. Cable was the highest revenue-generating medium with
$26.6 billion in sales.
"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."
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%.
New media was also hit by the tough economic climate. Internet ad spends
dropped 6.4% and Network TV took a 3.5% hit. Nevertheless, television continued
to be the dominant medium for advertisers, with 60% of all ad dollars spent on
Network, Cable, Hispanic, or Spot TV.
Spanish Language TV (network and cable) advertising continued to grow at a
clip of 0.8%, while African-American TV fell 3.4%.
The top 10 advertisers spent a total of $15.5 billion in 2008
- 15% less than the year before. Not a single one of the top 10 advertisers
spent more in 2008 vs. 2007. Procter & Gamble maintained its perch as the
top advertiser this year, despite a 19% decline vs. 2007.
Detroit's Big Three automakers held on to spots in the top 10, despite
double-digit percentage slashes in their ad budgets. Cerberus Capital Management
(Chrysler) and Ford Motor Co. cut advertising 31% and 29%, respectively. General
Motors trimmed its advertising 15%. Foreign automakers Toyota and Honda each
made the top 10, but they, too, slashed their ad spend 7% and 3%,
** Internet advertising expenditures account for CPM-based,
image-based advertising. These reported estimated expenditures do not
account for paid search advertising, text only, paid fee services,
performance-based campaigns, sponsorships, barters, in-stream
("pre-rolls") players, messenger applications, partnership advertising,
promotions and email campaigns or house advertising activity.
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