According to figures recently released by The Nielsen Company, global ad spending continues a steady climb to recovery in the first half of 2010. Advertising in the world's largest market is
also seeing signs of growth, with advertisers spending an estimated $54 billion during the first half of 2010, a 3.8% increase in U.S. ad spending year-over-year.
In total, the increase in
U.S. advertising reflects a modest improvement in U.S. consumer confidence in the first half of the year, as advertisers look to highlight value deals and increase promotions in the hopes of spurring
consumer spending. However, with confidence still well below pre-recessionary levels, automotive was one of only a few bright spots in the top 10 product category ad spending, says the report
U.S. Ad Spend by Sector |
Category | Quarter 1, 2009 - Quarter 2, 2009-$$$ | Quarter
1, 2010 - Quarter 2, 2010-$$$ | % Change |
Automotive | 3,491,438,000 | 4,431,709,000 | 26.93% |
Pharmaceutical | 2,090,707,000 | 1,998,762,000 | -4.40% |
Motion Picture | 1,645,751,000 | 1,592,196,000 | -3.25% |
Telephone Services - Wireless | 1,758,535,000 | 1,518,600,000 | -13.64% |
Restaurant | 805,082,000 | 824,978,000 | 2.47% |
Restaurant - Quick Service | 2,114,925,000 | 2,024,575,000 | -4.27% |
Dealerships | 1,634,702,000 | 1,602,897,000 | -1.95% |
Department Store | 1,516,520,000 | 1,591,149,000 | 4.92% |
Products - Direct | 933,141,000 | 828,155,000 | -11.25% |
Auto Insurance | 623,212,000 | 764211,000 | 22.62% |
Total | 16,614,018,000 | 17,177,235,000 | 3.39% |
Source: The Nielsen Company, October 2010 |
Overall, there was a 3% increase in the top 10 product categories, with the largest growth by far seen in automotive and auto insurance. The automotive advertising was driven
largely by increased spending by General Motors which was up 73% over 1H09. Ford and Toyota also grew their ad spending by 15% and 22% respectively. An increase of 82% for UAW Health Care Trust
contributed to the first half growth in the auto insurance category. All other categories, except department stores (+5%) and restaurants (+2%) showed declines in the first six months of the year.
Regional Changes in Advertising Dollars (% Change 1stH 2010 vs. 1stH
2009) |
Region | % Increase in 2010 |
Global Average | 12.8% |
North America | 4.7 |
Asia Pacific | 12.1 |
Europe | 8.5 |
Latin America | 44.5 |
Mid East/Africa | 23.8 |
Source: The Nielsen Company, October 2010 |
Looking at ad spending across media types,
U.S. television (network, cable, syndication, spot, Spanish Language network and Spanish Language cable) continues to dominate, accounting for $33.8 billion in advertising during the 1H10, a 6%
increase over last year. Spanish language network TV and Cable TV in particular saw the biggest gains, up 24% and 13% respectively over 1H09.
Print media overall (national and local magazines,
newspapers, Sunday supplements and B2B) was flat, however, national Sunday supplements received a significant uptick with 20.5% growth over last year. National magazines were also up 7.4%.
Alternatively, local Sunday supplements and national newspapers declined 7.9% and 6.9% respectively.
U.S. Ad Spend by Media Type |
Media Type | Jan-Jun 2009 | Jan-Jun 2010 | %
Change |
Business to Business | $1,305,504,250 | $1,054,525,521 | -19.22% |
Cable TV | $8,063,091,000 | $9,108,321,000 | 12.96% |
FSI Coupon | $246,535,406 | $253,643,516 | 2.88% |
Local Magazine | $215,200,797 | $198,596,922 | -7.72% |
Local
Newspaper | $5,175,683,500 | $5,187,628,000 | 0.23% |
Local Sunday Supplement | $26,757,018 | $23,533,229 | -12.05% |
National Magazine | $7,261,397,500 | $7,425,700,500 | 2.26% |
National Newspaper | $603,244,125 | $668,556,625 | 10.83% |
National Sunday Supplement | $460,186,281 | $559,376,875 | 21.55% |
Network Radio | $491,766,875 | $494,776,188 | 0.61% |
Network TV | $10,587,809,000 | $11,489,960,000 | 8.52% |
Outdoor | $1,506,906,750 | $1,530,320,000 | 1.55% |
Spanish Language Cable TV | $205,042,672 | $202,412,703 | -1.28% |
Spanish
Language Network TV | $1,326,478,750 | $1,646,938,375 | 24.16% |
Spot Radio | $2,572,394,500 | $2,514,994,000 | -2.23% |
Spot TV | $10,637,725,000 | $10,292,083,000 | -3.25% |
Syndicated TV | $1,096,335,750 | $1,107,379,875 | 1.01% |
Total | $51,782,059,174 | $53,758,746,329 | 3.82% |
Source: The Nielsen Company, October 2010 |
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