U.S. ad spending almost flat for first nine months of '07
By Erina Lin, Wednesday 12 December 2007 at 23:30 :: Advertising :: #964 :: rss
Total advertising spending in the U.S. was almost flat for the first nine months this year, according to TNS Media Intelligence.
Ad expenditures were up a bit for 0.2 percent to US $108.2 billion compared to the same period in 2006. Ad spending grew 1.3 percent in Q3.
"The anemic growth rates in measured ad spending reflect a market that is under stress from cyclical business conditions and fundamental structural changes," said Jon Swallen, senior vice president of research of TNS Media Intelligence, in a statement. "Deepening concerns about lower corporate profits, a softening economy, and reduced consumer spending have prompted marketers to be cautious with their advertising budgets."
Moreover, many advertisers are shifting their dollars to the Internet. Online display advertising topped all other media in terms of growth, up 17.2 percent to $8.4 billion for the first nine months this year. Spending in consumer magazines rose 6.4 percent to $17.3 billion with the volume flat, according to Editor & Publisher.
Total ad spending in newspapers dropped 5.2 percent to $19.2 billion. Local paper ad spending slipped 5.1 percent to $16.6 billion while national declined 6.1 percent to $2.3 billion. Spanish-language papers decreased 2.5 percent to $261 million.
Newspapers' share of ad spending also fell to 17.8 percent in the first nine months of 2007, compared with 18.8 percent for the same period last year, according to Editor & Publisher.
Sunday magazine spending rose 7.6 percent to $1.3 billion. Spot TV dropped 6.8 percent to $11.2 billion, and local radio declined 1.8 percent to $5.3 billion.
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