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Consumer Goods Industry Increases Online Display Ad Spending By 57 Percent During The Last Two Years, According To Nielsen

YouTube is the No. 1 Entertainment Site Advertised on by Consumer Goods Companies in Q1 2009

New York, US – June 17, 2009 – Nielsen announced today that image-based online ad spending by Consumer Goods companies increased by 57 percent over the last two years, growing from $99.8 million in Q1 2007 to $156.2 million in Q1 2009.

“While direct response advertising has been very successful on the Internet, with categories like finance and travel devoting a significant portion of their budget to online advertising, on-line advertising will not continue to grow as rapidly without major brands beginning to devote larger portions of their ad budgets to the Web. We are seeing some of that happen now with Consumer Packaged Goods companies, which are growing their budgets despite a down economy,” said David Wiesenfeld, vice president, online marketing solutions, Nielsen.

Table 1: Quarter-over-Quarter Growth in Online Display Advertising Spend by the Consumer Goods Industry (U.S.)

Quarter Estimated Spend $ Quarter-over-Quarter Growth
Q1 2007                  99,814,750 N/A
Q1 2008                122,785,505 23%
Q1 2009                156,221,975 27%

Source: Nielsen AdRelevance

YouTube is No. 1 Entertainment Site for CPG Advertisers
In Q1 2009, YouTube was the top entertainment Web site advertised on by consumer product companies, with 637.7 million display ad impressions and a 24 percent share of all advertising in the genre. AOL.com and Oprah.com were No. 2 and No. 3, with 323.1 million and 202.8 million ad impressions, respectively. YouTube was also the fastest growing site among the top 10, increasing 572 percent year-over-year (see Table 2).

“YouTube, as the most visible example of online video, is working hard to monetize their inventory across a number of verticals and Consumer Goods may hold particular promise in that effort,” Wiesenfeld added.

Table 2: Top 10 Entertainment Sites Advertised on by Consumer Goods Companies for Q1 2009 (U.S.)

Site Q1 ’08 Image-Based Ad Impressions (000) Q1 ’09 Image-Based Ad Impressions (000) Year-over-Year % Percent Growth
YouTube 94,939 637,727 572
AOL.com 115,746 323,142 179
Oprah.com 129,027 202,815 57
IMDb 516,138 162,598 -68
Yahoo! 93,850 161,809 72
Perezhilton.com N/A 132,862 N/A
NBC 229,551 116,000 -49
ABC 73,426 96,145 31
People.com 110,967 74,851 -33
MSN 161,890 69,866 -57

Source: Nielsen AdRelevance

Top CPG Product Categories Purchases by YouTube Visitors
Households that visit YouTube were 32 percent more likely than the average household to buy packaged tea in Q4 2008. YouTube visitors also enjoyed fruit juice during the quarter, being 19 percent more likely to purchase pineapple juice and 15 percent more likely to purchase nectar juices than the average household. In contrast, YouTube households were 13 percent less likely than average to buy canned-ham and canned-grapefruit (see Table 3).

Table 3: Over-Indexing and Under-Indexing Product Categories among YouTube Households (U.S.)

Over-Indexing Product Categories among YouTube Households Under-Indexing Product Categories among YouTube Households
Packaged Tea 132 Refrig Canned Ham       87
Refrig Pineapple Juice 119 Canned Grapefruit 87
Canned Succotash 119 Gingerbread Mixes 88
Frozen Cookies/Cookie Dough 118 Frozen Meat – Other 89
Refrig Nectars 115 Canned Cherries 89

Source: Nielsen AdRelevance