Commentary
Looks Like Online Ad Spending MAY Be A Leading Economic Indicator
- by Joe Mandese @mp_joemandese, September 18, 2008
Just heard back from the folks and Nielsen, and they’ve explained why they think online ad spending fell 6% during the first half of the year, and it’s mainly attributable to turmoil in the financial category. If so, it looks like the online ad market may have been prescient given what’s begun playing out last week and this week.
“Significant drop in financial services ad spending drive 6% overall decline in image-based online advertising,†reads the headline of a subsequent release that just came out from the Nielsen Online division of Nielsen Co.
The good news, Nielsen says, is that the entertainment, automotive and consumer goods categories continue to show “healthy†growth. The bad news, is they haven’t offset the nose dive taking place in financial services.
The financial services industry â€" consistently among the top online advertiser segments â€" showed estimated spending of $1.1 billion during the first two quarters compared to $1.5 billion during the same period in 2007, Nielsen found.
“The early 2008 decline in image-based online ad spend reflects the macro movements in the overall economy, particularly within the financial services industry,†said Jon Gibs, vice president, media analytics, Nielsen Online. “The good news is that we saw large gains from brand advertisers including Anheuser-Busch, Unilever, Toyota and General Motors, among others, which bodes well for the future. Companies are recognizing the Web’s potential to play a leading role in their broader branding efforts. Moreover, when we consider published growth figures for online video and paid search advertising, we believe overall online ad spending was up in the low double-digit range. The shift we’re seeing from display ads to rich media and text formats opens up even more creative possibilities for advertisers and should drive continued growth in the online advertising sector.â€
Table 1: Top 10 Industries Ranked by Online Image-Based Advertising Estimated Spending for January - June 2008 (U.S.)
Estimated Spend Q2 2007 | Estimated Spend Q2 2008 | % Change | |
Financial Services | $1,513,499,500 | Â Â Â Â Â Â Â Â Â Â Â Â Â&n bsp;Â Â Â Â Â Â Â Â Â Â Â Â $1,107,215,800 | -27% |
Web Media | $903,731,700 | Â Â Â Â Â Â Â Â Â 94; Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â ; $ 895,871,500 | -1% |
Retail Goods & Services | $657,760,600 | Â Â Â Â Â Â&nb sp;Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â ; Â Â Â Â $611,790,900 | -7% |
Telecommunications | $541,705,300 | Â & #194; Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â&nb sp;Â Â Â Â Â Â Â Â Â $512,837,800 | -5% |
Automotive | $208,170,300 | Â Â Â Â Â Â Â Â Â Â Â Â Â&n bsp;Â Â Â Â Â Â Â Â Â Â Â Â Â Â $301,249,900 | 45% |
Consumer Goods | $221,238,600 | Â Â Â Â Â Â Â Â Â 94; Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â ;Â $292,940,800 | 32% |
Entertainment | $140,266,100 | Â Â Â Â Â&nbs p;Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $206,145,600 | 47% |
Travel | $201,209,900 | Â& nbsp;Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 94; Â Â Â Â Â Â Â Â Â $202,603,900 | 1% |
Public Services | $303,526,000 | Â Â Â Â Â Â Â Â Â Â Â Â Â&n bsp;Â Â Â Â Â Â Â Â Â Â Â Â Â Â $189,192,800 | -38% |
Hardware & Electronics | $123,106,500 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â &# 194; Â Â $146,290,800 | 19% |
Joe Mandese is the Editor in Chief of MediaPost. You can reach Joe at joe@mediapost.com.
