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U.S. Ad Spend Climbs 3.8% in 1H10, Led by Auto Increases

November 2, 2010

http://www.mediabuyerplanner.com/entry/56000/u.s.-ad-spend-climbs-3.8-in-1h10-led-by-auto-increases/

Ever since the enocomic crash in 07, ad spending only fell lower and lower every year. Advertisers and corporations had to work with smaller and smaller ad budgets, and frankly, nobody likes that…… But they say that it’s coming back up now, according to Washington Times and Obama, and it is supposed to be happening slowly but steadily. This article by MediaBuyerPlanner.com is giving us hope that maybe in the ner future our budgets will start to look brighter too~

As 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 a 3.8% increase in U.S. ad spending year-over-year, according to Nielsen.

The U.S. market, which faced six straight quarters of ad spending declines, has seen a turnaround in 2010. In total, advertisers spent an estimated $54 billion during the first half of 2010, Nielsen says. 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.

Still, confidence remains well below pre-recessionary levels, and automotive was one of only a few bright spots in the top 10 product category ad spending.

By Sector

Overall, there was a 3% increase in the top 10 product categories, with the largest growth by far seen in automotive (+27%) and auto insurance (+23%). The automotive advertising was driven largely by increased spending by General Motors which was up 73% over 1H09. Ford and Toyota also boosted 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.

—Automotive was up 26.9%
—Pharmaceutical was down 4.4%
—Motion Picture was down 3.6%
—Telephone Services – Wireless was down 13.6%
—Restaurant spending was up 2.5%
—Restaurant – Quick Service (QSR) was down 4.3%
—Dealerships was down 2.0%
—Department Store was up 4.9%
—Products – Direct was down 11.3%
—Auto Insurance was up 22.6%

By Medium

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 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: national Sunday supplements jumped 20.5%, while national magazines were up 7.4%, but local Sunday supplements and national newspapers declined 7.9% and 6.9% respectively, and local magazines declined 7.7%.

—Cable TV was up 13%
—FSI Coupon up 2.9%
—Local Magazine down 7.7%
—Local Newspaper up 0.2%
—Local Sunday Supplement down 12.1%
—National Magazine up 2.3%
—Network Radio was up 0.6%
—Network TV was up 8.5%
—Outdoor was up 1.56%
—Spanish Language Cable TV was down 1.3%
—Spanish Language Network TV was up 24.2%
—Spot Radio was down 2.2%
—Spot TV was down 3.3%
—Syndicated TV was up 1.0%

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