Advertising expenditures dropped 2.6% overall last year, according to data released today by The Nielsen Company. "Given the state of the U.S. economy, a decline in ad spending was expected, but it's not as bad as it could have been," said Annie Touliatos, VP of Sales Development for Monitor-Plus, Nielsen's ad tracking service. "The campaign season and the Summer Olympics were two big events that had a tremendous impact on advertising, especially on TV buys."
The automotive industry's ad spending fell hardest in 2008. The industry slashed its spending by almost $1.8 billion, or 15.5%. Among the Big Three automakers, Chrysler (Cerberus Capital Management) and Ford Motor Co. cut advertising 31% and 29%, respectively. General Motors trimmed its advertising 1%.
Pharmaceuticals also cut back its spending significantly, declining 18% and almost $1 billion compared to 2007. Quick Service Restaurants, however, was the only category in the top 5 to spend more in 2008, with 3.8% more expenditures in 2008.
|RANK||Product Category||Jan-Dec 2008 (millions)||Jan-Dec 2007 (millions)||% Change|
|3||Auto Dealerships - Local||$4,198.30||$4,604.60||-8.80%|
|4||Quick Service Restaurant||$4,080.50||$3,932.80||3.80%|
|6||Wireless Telephone Services||$3,431.40||$3,731.60||-8.00%|
|8||Direct Response Product||$2,576.90||$2,358.90||9.20%|
|Top 10 Product Categories||$39,060.00||$42,808.10||-8.80%|
|source: The Nielsen Company 2009|
Cable TV was one of only two media (along with Hispanic Cable TV) whose ad spend showed growth in 2008. Its 7.8% jump in 2008 accounted for almost $2 billion in additional revenue for cable networks. Meanwhile, Network TV ad revenue declined 3.5% in 2008.
Print media continued its anticipated decline in 2008. Local and National Newspaper ad spends declined 10.2% and 9.6%, respectively. National Magazines fell 7.6%, while Local Magazines dropped 3.7%.
Procter & Gamble maintained its perch as the top advertiser this year, despite a 19% decline vs. 2007.
To see the full release from The Nielsen Company, including a media breakout and top advertising companies, click here.