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Multicultural Ad Spending Declines in 2009, but Less than Overall Ad Market
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Multicultural Ad Spending Declines in 2009, but Less than Overall Ad Market

Spending on Spanish Language and African-American media declined 4.7% and 7.3%, respectively, in 2009, according to figures released today by The Nielsen Company. The declines are consistent with the trend in overall advertising, although the drops aren’t as deep. Last month, Nielsen reported that ad spending fell nine percent in 2009, despite significant increases in Cable TV.

Spanish Language Ad Spending

Nielsen found that Spanish Language advertising was down 4.7% in the U.S. last year. A total of $5.4 billion was spent on all Spanish Language media in 2009, down almost $270 million from the previous year. The slide was paced by significant declines in National Magazine and Local Newspaper advertising, which were down 38% and 25%, respectively.

The decreases in print media were offset by a 32% increase in Spanish Language Cable advertising. Nielsen found that 19 of the top 20 advertisers in the medium increased their ad spends year over year.

Spot TV was the top cash generator for Spanish Language media in 2009 with an estimated $1.4 billion in ad sales, down 10% compared to the previous year.

Spanish Language Media
Media Type 2008-$ (000) 2009-$ (000) % Change
Local Magazine 988.2 0.0 -100.0%
Local Newspaper 103,144.6 77,059.5 -25.3%
National Magazine 182,096.7 112,558.7 -38.2%
Spanish Language Cable TV 323,065.0 426,959.4 32.2%
Spanish Language Network TV 2,982,158.3 2,866,092.5 -3.9%
Spot Radio 567,233.9 562,481.3 -0.8%
Spot TV 1,559,307.8 1,402,754.4 -10.0%
Total 5,717,994.5 5,447,905.7 -4.7%
Source: The Nielsen Company

African-American Ad Spending

Spending on African-American media saw a similar decline of 7.3% in 2009. The decline was paced by decreased spending in Network TV (-72%) and National Magazines (-33%).

Increased spending on Cable TV helped balance out the losses. Advertisers spent 35% more on African-American Cable in 2009, thanks to added spending by each one of the top 20 advertisers in the category.

Spot Radio earned the most revenue among African-American media in 2009. Advertisers spent $748 million on the medium last year, almost 10% less than in 2008.

African American Media
Media Type 2008 $ (000) 2009 $ (000) % Change
Cable TV 539,193.6 728,440.8 35.1%
National Magazine 530,766.1 353,806.7 -33.3%
Spot Radio 826,824.5 747,794.7 -9.6%
Network TV 95,524.8 26,626.8 -72.1%
Syndicated TV 110,638.4 92,935.8 -16.0%
Total 2,102,947.5 1,949,604.8 -7.3%
Source: The Nielsen Company

Product Categories

The top spending product category for both Spanish Language and African-American media was Quick Service Restaurants. Advertisers within the category spent $335 million on Spanish Language media and $87 million on African-American media. McDonald’s was the top fast food advertiser in both media segments.

The Automotive category was the next highest spender in both multicultural media. Spending in Spanish Language was down 39% in 2009, paced by double-digit percent losses by each of the top five auto advertisers. Spending by the auto industry in African-American media was down 18% year over year.

The category showing the most growth among the top 10 Spanish Language advertisers was Satellite TV providers. Advertisers in this category upped their ad spends 77% in 2009, as satellite TV companies made the pitch for their services in the run up to the DTV transition in June 2009. According to Nielsen data, a larger percentage of Hispanic households were not ready for the transition than non-Hispanic households at the end of 2008.

Spanish Language Categories
Product Category 2008-$ (000) 2009-$ (000) % Change
RESTAURANT-QUICK SVC 293,652.9 334,593.0 13.9%
AUTOMOTIVE 528,577.9 323,230.0 -38.8%
TELEPH SVCS-WIRELESS 316,808.3 305,463.7 -3.6%
STORE-DEPT 307,345.4 294,420.8 -4.2%
SATELLITE COMM SVCS 134,658.1 238,744.6 77.3%
DIR RESP PROD 220,632.3 237,227.6 7.5%
BEER 165,045.9 171,677.7 4.0%
LEGAL SVCS 89,684.3 123,847.0 38.1%
MOTION PICTURE 112,015.0 99,846.5 -10.9%
INSURANCE-AUTO 144,305.0 98,084.0 -32.0%
Source: The Nielsen Company

Insurance companies showed the most growth among the top 10 African-American media spenders. General Insurance and Car Insurance categories placed 8th and 9th after increases of 29% and 24%, respectively. The Motion Picture category showed similar growth, increasing its spend 24% to $72 million.

African American Categories
Product Category 2008-$ (000) 2009-$ (000) % Change
RESTAURANT-QUICK SVC 72,909.6 86,906.8 19.2%
AUTOMOTIVE 105,005.7 85,851.1 -18.2%
STORE-DEPT 76,117.9 72,234.3 -5.1%
MOTION PICTURE 58,094.9 71,937.5 23.8%
TELEPH SVCS-WIRELESS 52,610.6 50,602.5 -3.8%
PHARMACEUTICAL 50,542.5 47,556.1 -5.9%
DIR RESP PROD 41,810.4 43,544.9 4.1%
INSURANCE 26,739.2 34,378.2 28.6%
INSURANCE-AUTO 26,285.0 32,521.9 23.7%
CREDIT SVCS 23,052.1 28,204.4 22.4%
Source: The Nielsen Company


  NOTE: The following methodologies are used to identify Spanish Language and African-American categories:

Spanish Language

– 5 television networks, 6 cable networks

– 53 local television stations across 27 markets

– 74 radio stations across 24 markets

– 8 local newspapers across 5 markets

– 20 national magazines

African-American

– Radio: 105 stations across 34 markets. The following formats were included: Black News & Talk, Gospel, Urban Reggaeton, Smooth Jazz, Urban, Urban AC, and Urban Oldies.

– Network & Syndication TV: Programs with an African-American audience composition of 50% or greater.

– National Magazines: 12 national magazines

– Cable TV: BET & TV One, as well as other programs across various networks that achieve an African-American audience comp of 50% or greater and African-American P2+ projection of 100,000 or greater.