WPP's Kantar: 2011 Barely Made It Out Alive, Q4 Experienced First Decline Since 2009
It was a squeaker, but total ad spending in the media tracked by WPP’s Kantar Media unit grew 0.8% in 2011, according to a full-year analysis released by the competitive ad tracking firm this morning. And it barely came out on the positive side, as Kantar estimates the fourth quarter of 2011 declined 1.0%, marking the first quarterly decline since the end of 2009.
“Since reaching a post-recession peak in the third quarter of 2010, advertising growth rates have slowed sequentially for five consecutive quarters,” reads the analysis by Kantar Senior Vice President-Research Jon Swallen.
“The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011,” Swallen stated, adding: “Some mature digital media formats were also touched by the year-end tide of reduced spending. Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly towards emerging and unmeasured digital platforms bears watching as 2012 unfolds.”
Surprisingly, Kantar estimates that ad expenditures for measured digital media declined during the fourth quarter, with paid-search budgets dropping 6.4% from year-earlier volume, as financial, insurance and local service advertisers cut back on search. Online display ad spending decreased 5.9%, “dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies,” Kantar reported, estimating that full-year display nonetheless grew 5.5%, but full-year search declined 2.8% during 2011.
Percent Change in Measured Ad Spending1
| MEDIA SECTOR
(Listed in rank order of full year 2011 spending) | 4th Quarter 2011 vs. 2010 | Year 2011 vs. 2010 |
|
TELEVISION MEDIA | 3.1% | 2.4% |
| 2.4% | 7.7% |
| 7.7% | -2.0% |
| -8.7% | -4.5% |
| 19.1% | 8.3% |
| 11.0% | 15.4% |
| INTERNET MEDIA | -6.2% | 0.4% |
| -6.4% | -2.8% |
| -5.9% | 5.5% |
| MAGAZINE MEDIA6 | -4.9% | -0.4% |
| -5.2% | 0.0% |
| -0.8% | 0.8% |
| -9.8% | -7.2% |
| -3.8% | -2.9% |
| 25.1% | 24.9% |
| NEWSPAPER MEDIA7 | -3.7% | -3.7% |
| -3.9% | -3.8% |
|
-3.9% | -3.6% |
| 10.4% | 1.9% |
| RADIO MEDIA | -5.6% | -0.6% |
| -3.8% | 0.6% |
| -13.9% | -5.4% |
| 4.3% | 2.7% |
| OUTDOOR | 1.1% | 6.5% |
| FSIs9 |
3.0% | -4.3% |
|
TOTAL | -1.0% | 0.8% |
Source: Kantar Media
1. Figures are based on the Kantar Media Stradegy™ multimedia ad expenditure database across all measured media, including: Network TV (5 networks); Spot TV (125 DMAs); Cable TV (71 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (204 publications); Sunday Magazines (8 publications); Local Magazines (29 publications); Hispanic Magazines (18 publications); Business-to-Business Magazines (304 publications); Local Newspapers (108 publications); National Newspapers (3 publications); Hispanic Newspapers (46 publications); Network Radio (5 networks); National Spot Radio (205 markets); Local Radio (32 markets); Internet search (Google search engine, excluding mobile); Internet display (1,911 sites monitored at least one year); and Outdoor. Figures do not include public service announcements (PSA) or house advertising
2. Cable TV figures based on 67 English language networks and do not include any Hispanic cable networks
3. Spot TV figures based on 658 English language stations in 125 DMAs and do not include any Hispanic stations
4. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable network and 71 local Hispanic TV stations
5. Internet search figures reflect paid activity on Google and are compiled from monthly data on Top 20,000 subdomains. Mobile search spending is not included.
6. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications
7. Newspaper media figures reflect print editions of publications
8. Local Radio includes expenditures for 32 markets in the U.S.
9. FSI data represents distribution costs only
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