• by Joe Mandese  @mp_joemandese, September 24, 2008

Ad spending across the major U.S. media fell at its steepest rate since the industry's last recession in 2001, according to new data released this morning by ad tracking service TNS Media Intelligence. Spending across the media tracked by TNS MI fell 3.7% during the second quarter of 2008, reflecting the worsening of the U.S. economy, and a slackening of demand from major marketers for most major media. Combined with lackluster first quarter results, first half ad spending declined 1.6%.

 

Using the term "collateral damage" to describe the impact the economy has been having on U.S. ad spending, TNS MI Senior Vice President-Research Jon Swallen noted, "Advertising expenditures started to contract in March, well before the September turbulence on Wall Street renewed concerns about the health of the economy."

While second half results are likely to be "bolstered by the Summer Olympics and political elections," Swallen predicted that, "sustained improvement will most likely depend on a turnaround in consumer spending that rejuvenates corporate profits and encourages marketers to expand their advertising efforts."

According to TNS MI's tracking, every one of the 19 major media it measures posted weaker year-over-year performance in the second quarter as compared to the first three months of 2008. While quarterly details were not released this morning, TNS MI found that Internet display advertising continued to increase its share and absolute growth during the first half, rising 8.0% over the first half of 2007. That finding comes in contrast to estimates released last week by Nielsen Monitor-Plus, which actually had online display advertising declining 6% during the first half due to fallout in the financial services ad category.

Interestingly, TNS MI has financial services ad spending relatively stable through the first half, declining only a smidgen to $4.499 billion. The most significant category decline during the first half was automotive, which declined 11.2% to $6.478 billion, with the preponderance coming from imports (down 16.9%) vs. domestic (-6.3%) automakers.

First Half Ad Spending (Vs. First Half '07
TELEVISION MEDIA		-0.4%
Network TV		-2.4%
Cable TV		+3.1%
Spot TV		-4.4%
Spanish Language TV		-0.1%
Syndication - National		+10.2%
MAGAZINE MEDIA		-1.8%
Consumer Magazines		-1.8%
B-to-B Magazines		-5.9%
Sunday Magazines		+4.8%
Local Magazines		-2.8%
Spanish Language Magazines		+7.1%
NEWSPAPER MEDIA		-7.4%
Local Newspapers		-7.1%
National Newspapers		-9.5%
Spanish Language Newspapers		-11.0%
INTERNET		+8.0%
RADIO MEDIA		-6.5%
Local Radio		-7.5%
National Spot Radio		-7.4%
Network Radio		+3.4%
OUTDOOR		+1.8%
FSIs		+2.0%
TOTAL		-1.6%

 

 

Source: TNS Media Intelligence. Figures are based on the TNS Media Intelligence Strategy(TM) multimedia ad expenditure database across all TNS MI measured media, including: Network TV (6 networks); Spot TV (101 markets); Cable TV (52 networks); Syndication TV; Hispanic Network TV; Consumer (PIB) Magazines (215 publications); Sunday Magazines (6 publications); Local Magazines (23 publications); Hispanic Magazines (26 publications); Business-to-Business Magazines (317 publications); Local Newspapers (144 publications); National Newspapers (3 publications); Hispanic Newspapers (51 publications); Network Radio; Spot Radio; Local Radio; Internet; and Outdoor. Figures do not include public service announcement (PSA) data.