Analyst: U.S. ad spending stagnates
By Erina Lin, Wednesday 26 March 2008 at 21:01 :: Advertising :: #1449 :: rss
According to research firm TNS Media Intelligence, U.S. ad spending lagged in the fourth quarter because marketers cut newspaper and radio ads due to the weakening economy.
Ad spending dropped 0.1 percent compared with the same quarter in 2006. It rose 1.3 percent from the third quarter of 2007, and slid 0.2 percent from the second, according to TNS.
“January ad sales probably gained one percent,” said Jon Swallen, TNS’ senior vice president of research.
“The ad market has been stuck in the mud for 10 months. We're on this meandering track, and looking ahead, there's concern about the worsening economy," Swallen said in an interview, Bloomberg reported.
In the last quarter of 2007, newspaper spending declined 6.6 percent to $7.16 billion, radio was down 8.4 percent to $2.72 billion, and TV dropped 1.4 percent to $18.2 billion. Magazines increased 7.2 percent to $9.2 billion, while Internet spending gained 13 percent to $2.93 billion.
For the full-year, overall spending increased 0.2 percent to $149 billion. Ad spending increased in consumer magazines, cable-television networks and Web sites last year, while network TV, newspapers and radio were down.
Online spending gained 16 percent to $11.3 billion in 2007, and consumer magazines were up seven percent to $24.4 billion. Network TV dropped two percent to $22.4 billion, Bloomberg reported.
Moreover, newspapers' share of total spending declined from 20.4 percent in 2004 to 17.7 percent last year. Radio fell 0.6 percent to 7.2 percent during the same period. National TV rose one percent to 32 percent, while the Internet jumped to 7.6 percent from 5.3 percent.
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