Ad Spending Up 3.8% Through Q3
Nielsen Monitor-Plus found that ad spending grew 3.8% through Sept. 30 compared to the same period a year ago. The last survey, completed through June 30, showed a 2.3% increase.
Showing increases were local newspaper display ads (9.5%), network TV (7.9%), network radio (7.3%), Hispanic TV (4.3%), Spot TV (3.2%), Cable TV (3%), National Magazines (2.2%) and Spot Radio (2.1%). Internet reported a 1% drop in ad spending. Syndicated TV fell 8.7% and national newspapers dropped 9.3%.
Jeff King, managing director of Nielsen Monitor-Plus, says the company isn’t in the business of predicting the future. But with a third quarter of growth in ad spending in 2002, that’s a good harbinger of next year.
“We feel pretty confident,” King says. On the other hand, given the volatile economy, it’s hard to tell what will happen, he says.
Big advertisers reinvesting in the advertising business helped fuel the industry’s growth, particularly in buying network TV. Network and local TV, along with local newspapers, were also aided by an uptick in auto advertising and the Q3 elections.
Through August, auto advertising saw the highest dollar increase. Motion picture and wireless also improved.
In a study of the top 10 advertisers from January through August, General Motors led the list and showed a growth of 7.8%. Procter & Gamble Co. was second although it showed a 24.8% rise in ad spending. AOL Time Warner was third with a 14.5% increase, Ford Motor Co. was fourth and had a 2.3% drop in ad spending and DaimlerChrysler AG was fifth and registered a 10.3% fall in ad spending. The rest of the top 10 were Johnson & Johnson, Philip Morris Cos. Inc., Walt Disney Co., Pfizer Inc. and Pepsico. Dollar amounts were not available.
Nielsen Monitor-Plus attributed Procter & Gamble’s increase to new products and line extensions like Cover Girl Aquasmooth Makeup and Swiffer Wet Jet Mops. Pfizer upped its spending on ads touting Lipitor and Viagra, Nielsen Monitor-Plus said. Although Ford and DaimlerChrysler’s ad spending dropped compared to the same period a year ago, GM pulled ahead with more money given to Cadillac, Chevrolet and Saturn campaigns.