Total measured advertising expenditures in the first nine months of 2009 dropped by 14.7 percent as compared to the same period in 2008, according to data released today by TNS Media Intelligence. Ad spending during the third quarter of 2009 was down 15.3 percent versus last year, the sixth consecutive quarter of year-over-year declines.
“The updated monthly trend line on total advertising expenditures still shows no meaningful improvement through October,” said Jon Swallen, SVP research at TNS Media Intelligence. “The slump has now passed its first anniversary and year-on-year comparisons will become easier in the upcoming months. Going forward, the timing, strength and durability of an advertising recovery will ultimately be determined by the way consumer activity rebounds.”
Ad Spending by Media
Internet display (+7.0 percent) and FSIs (+3.9 percent) were the only media types with spending increases for the nine month period. Online growth was propelled by telecom, travel and auto advertisers. FSIs benefitted from CPG companies expanding their couponing efforts as consumers became more value-conscious.
Among Television media, Cable TV networks continued to translate audience gains into a larger share of ad revenue. Year-to-date Cable TV expenditures slipped by just 2.9 percent, a much stronger performance than the TV sector as a whole. Network TV, now faced with comparisons against the 2008 Summer Olympics bonanza, saw year-to-date spending fall 11.5 percent and Q3 spending tumble 25.1 percent. Spot TV expenditures (-27.5 percent) remained depressed due to persistent weakness in auto and retail activity as well as cyclical reductions in political advertising.
Magazines (-19.7 percent), Newspapers (-22.8 percent) and Radio (-22.8 percent) severely lagged the overall ad market during the January-September period. Third quarter losses for each of these broad media groupings were less severe compared to the first half of the year and this could be construed as a positive indicator. However, these media are also into their second year of steep declines so Q3 comparisons are against the relatively low levels of year-ago spending.
Overall, local media ad spending was down 23.7 percent through September while national media dropped 10.1 percent.