Ad biz down despite Web
Ad spending for the first three quarters of 2007 dipped 0.1%, but spending on the Internet continued to soar, with a 15.9% increase over the same period last year, the Nielsen Co. said Thursday.
'07 spending off 0.1% through Q3
According to preliminary figures from Nielsen Monitor-Plus, ad spending on broadcast TV was down 2.5%, while national cable was up 1.2%. The biggest spending declines were noted in spot TV in the top 100 markets, down 5%; local newspapers, down 7.4%; national newspapers, down 5.2%; local magazines, down 4.6%; and B2B magazines, down 3.7%.
In addition to the Internet, ad spending also increased for national magazines by 7.7%, national Sunday supplements (6%) and outdoor advertising (5.7%.
Ad spending across monitored media for the top 10 advertisers in the first three quarters of the year reached $30.5 billion, down 6.3% compared with the year-ago period. Eight out of 10 advertisers decreased their budgets, with General Motors showing the largest decline from about $1.75 billion to $1.36 billion, down 22.2%. Johnson & Johnson's spending dropped 10.8%, Time Warner's fell 5.4%, Toyota's 6.6%, Chrysler's 11.3%, Ford's 4.3% and AT&T's 4.4%.
Spending for the 10 largest product categories reached $20.8 billion, down 2.3% from the year-ago period. With the exception of pharmaceuticals, wireless telephone services and direct response products, spending dropped in most product categories. The biggest declines were in automotives (down 13.5%), department stores (7.5%) and quick service restaurants (6.4%).
In terms of product placement, Nielsen reported an increased number of placements in primetime broadcast programming -- 22,046 occurrences compared with 19,125 in the same period last year. Fox's "American Idol" again was the top show in terms of the number of placements, with 4,349 occurrences. Coca-Cola, primarily through its association with "Idol," was the most-placed brand with 3,111 occurrences.
In cable, Nielsen reported a decline in placements in the top 10 programs -- 136,078 occurrences compared with 160,118 a year ago. "American Chopper" was the cable show with the most placements in the first three quarters with 41,657 occurrences.