Ad Spending Up Across Broad Range Of Categories, Broad Range Of Media
08 Jul 2010 Posted by Market and Main Media
First-quarter ad spending was up by 5% when compared to the first quarter of 2009, making it the first positive spending quarter in the last 2 years. In an interview with Media Life, Jon Swallen (senior vice president of Kantar Media) explains that TV, radio and the Internet led the recovery while overall print media, though improved, is still lagging somewhat behind.
Improvements in spending were present across a broad range of categories with automotive at the forefront, with all of the major manufacturers (GM, Ford, Honda, Toyota, Nissan and Hyundai) spending actively again with the exception of Volkswagen. Financial services also performed well, driven by credit card companies American Express and JPMorgan Chase spending strongly.
In terms of newspapers, the national papers (The Wall Street Journal, The New York Times and USA Today) gained 9% in advertising while local papers were down 5.6%. Newspaper advertising was boosted by spending among automotive, especially by local auto dealers and dealer associations, and other retail categories like home improvement stores and department stores.
For now, second-quarter spending is expected to continue at this positive pace but the rest of the year remains in doubt. Factors that may impact the recovery include consumer sentiment, job growth and even the European financial situation.
“We’re definitely in a better place now than six months ago. Everyone wants to know, will we still be in a good place or an even better place in another six months? I think these results are encouraging and it certainly positions the market well for the rest of the year. But I think in the back half of the year there are still some potential doubts about what could go wrong,” concluded Swallen.
“Media Economy- Behind the Strength of First-Quarter Ad Spending,” Media Life, 6/1/10 www.medialifemagazine.com/artman2/publish/Media_economy_57/On-the-strength-of-first-quarter-ad-spending_printer.asp