• by Wayne Friedman , April 1, 2008

U.S. advertising slowed down considerably in 2007, according to the Nielsen Company, only inching up 0.6% over 2006.

This seems to be the harbinger of the U.S.'s current economic performance. In the fourth quarter of 2007, the economy slowed to the same growth rate--0.6%, according to the U.S. Commerce Department. Some analysts say the economy is now in a recession.

While television and newspapers outlets generally suffered in 2007 with declines, Nielsen said the Internet advertising business continues to buck the trend--up strongly at almost 19% over 2006, the most of any media category.

Other categories seeing increases in 2007: national magazines up 7.6%; outdoor 7.2%; national Sunday supplements 4.9%; national cable television 2.2%; and Spanish-language TV 1.5%.

Better advertising news was found in other parts of the world. The Asia-Pacific had a 12.1% gain, while the combined territories of Europe, Middle East, and Africa climbed nearly 5%.

In regard to specific media, newspapers were the big losers. Local newspaper business was off 7.5%, and national newspapers were down 7.7%. Local Sunday supplements were 4.9% off the pace of 2006.

Except for national cable TV, other TV media was lower versus a year ago. Network television was 1.5% lower; spot TV stations in markets 101 to 210 were 2.6% down, with spot TV stations in markets 1 to 100 almost twice as bad, down 5.1%.

As has been reported, automobile companies--the biggest U.S. advertising category--have been spending less: General Motors down 12% to $2.03 billion; Ford Motor off 4% to $1.76 billion; Cerberus Capital Management (which includes Chrysler, Dodge, GMAC, and Jeep), dropping 10% to $1.36 billion; and Toyota Motor Corp. 7% lower to $1.26 billion.

Procter & Gamble, the biggest single U.S. advertiser, improved 6% to $3.73 billion. AT&T, the second-largest advertiser, also went a bit higher--up 2% to $2.15 million.

Entertainment companies were lower. Time Warner was down 14% to $1.47 billion, and Walt Disney was off 9% to $1.19 billion.

Spending for the top 10 advertisers was down 3% at $44.6 billion in 2007. Financial/investment service companies had the fastest overall growth--up 14%--while mobile phone services improved the most in terms of overall dollars: a $422 million increase versus 2006.

Nielsen also reported year-long product placement activity. Network TV witnessed a 13% increase in the number of occurrences, while cable declined 13%.

For network television, the biggest single program again was Fox's "American Idol" with 4,349 occurrences. NBC's "Bigger Loser" was in second place with 3,286. CW had the most shows--four--in the top 10 of any network, led by "America's Next Top Model" with 2,694, which came in at fourth place overall.

In cable, TLC shows dominated product placement, with six series in the top 10. The top show, TLC's "American Chopper," had 52,503 occurrences--more than twice as much as the second-place show, TLC's "Miami Ink," which had 20,594.