Total Ad Expenditures Stagnate; Spanish-language Media Jumps Through 2011

According to Kantar Media Intelligence 2011 Ad Expenditures Data, general market media, including digital, but with the exception of TV, stagnated during the last quarter of 2011 and in 2011 overall. However, Hispanic TV, Magazines and Newspapers all grew substantially.

Total advertising expenditures increased 0.8% in 2011 and finished the year at $144.0 billion, according to data released today by Kantar Media Ad spending. Since reaching a post-recession peak in Q3 2010, advertising growth rates have slowed sequentially for five consecutive quarters.

Jon Swallen, SVP Research at Kantar Media Intelligence North America "... the contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011... whether... an isolated occurrence or an early sign of digital dollars moving... towards emerging and unmeasured digital platforms bears watching... “

Network TV expenditures jumped 7.7% year-over-year and were helped by strong pricing for football, a baseball World Series that went the maximum seven games and the launch of The X Factor singing competition program. The rate of Cable growth eased during Q4, finishing at +2.4% as higher demand from restaurants and retailers was offset by reductions from consumer packaged goods. For the full year, Network TV decreased by 2.0% while Cable rose 7.7%.

Spanish language TV ad spending surged 19.1% in fourth quarter, paced by higher sell-out levels at over-the-air networks. For all of 2011, the segment increased 8.3%.

Syndication TV benefitted from higher spending by department stores and health & beauty brands and saw expenditures soar 11.0% in Q4. Full year spending advanced by 15.4%.

Spot TV expenditures fell 8.7% in the fourth quarter but the more significant indicator was that November and December spending were each down, despite easy comparisons against diminished, post-election spending volume of a year ago. Full year Spot TV spending dropped 4.5%.

Free Standing Inserts achieved healthy gains in the fourth quarter with spend rising 3.0%. Although manufacturers have been distributing fewer FSI coupons, retailer promotion pages have increased significantly and this contributed to the improvement.

Ad expenditures for measured digital media declined in the fourth quarter. Paid Search budgets were 6.4% lower versus a year ago with continuing reductions from financial, insurance and local service advertisers. Display investments decreased 5.9% in Q4, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, Paid Search declined 2.8% and Display increased 5.5%.

Consumer Magazines declined 5.2% in the fourth quarter due to deep cutbacks in auto, food and pharmaceutical advertising. Total year expenditures were level compared to prior year. Outlays in Sunday Magazines fell 9.8% in Q4, the sixth consecutive quarter of year-over-year declines, and were down 7.2% for all of 2011.

Local Newspaper ad expenditures fell 3.9% during the fourth quarter, hurt by the reallocation of retailer advertising budgets to other media channels during the key holiday shopping season. Full year spending was 3.8% lower. The losses in Newspaper spending are consistent with reductions in the amount of space sold.

The pace of spending in Radio media also sagged. Local Radio expenditures were down 3.8% and National Spot Radio plummeted 13.9% in the fourth quarter. The telecom, financial service and automotive categories were prime contributors to these quarterly decreases.

Percent Change in Measured Ad Spending (Rank Order By 2011 Spending)

Media Sector Media Type

4th Q 2011 vs. 2010

Year 2011 vs. 2010

Television Media

3.1%

2.4%

   Cable TV

2.4%

7.7%

   Network TV

7.7%

-2.0%

   Spot TV3

-8.7%

-4.5%

   Spanish Language TV

19.1%

8.3%

   Syndication – National

11.0%

15.4%

Internet Media

-6.2%

0.4%

   Paid Search

-6.4%

-2.8%

   Display

-5.9%

5.5%

Magazine Media

-4.9%

-0.4%

   Consumer Magazines

-5.2%

0.0%

   B-to-B Magazines

-0.8%

0.8%

   Sunday Magazines

-9.8%

-7.2%

   Local Magazines

-3.8%

-2.9%

   Spanish Language Magazines

25.1%

24.9%

Newspaper Media

-3.7%

-3.7%

   Local Newspapers

-3.9%

-3.8%

   National Newspapers

-3.9%

-3.6%

   Spanish Language Newspapers

10.4%

1.9%

Radio Media

-5.6%

-0.6%

   Local Radio

-3.8%

0.6%

   National Spot Radio

-13.9%

-5.4%

   Network Radio

4.3%

2.7%

Outdoor

1.1%

6.5%

FSIs

3.0%

-4.3%

Total

-1.0%

0.8%

Source: Portada Editorial Staff, March 2012

For additional information, please visit KantarMedia here.

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