Ad spending falls 1.7% in first nine months of '08 December 11, 2008
Posted by Mark Blei in : Uncategorized , trackbackCHICAGO (MarketWatch) — Total advertising expenditures from January to September 2008 fell 1.7% compared with the first nine months of 2007, with ad spending on pace for more declines as the fourth quarter winds to a close, according to a report issued Thursday by TNS Media Intelligence.
“Media ad spending, which began tiptoeing into negative territory in early 2007, has crossed an inflection point in the past six months as the economic downturn has become more widespread,” said Jon Swallen, senior vice president of research at TNS Media Intelligence, in a statement.
“Preliminary data from the fourth quarter indicate a further slackening of the overall advertising market,” Swallen continued. “Consumer spending levels, which drive the corporate profits that in turn fund marketing budgets, remain a serious concern and will have a strong influence on the depth and duration of the current difficulties facing advertising.”
Not surprisingly, the decline was led by a 10% drop in newspaper advertising, as compared with the first nine months of 2007. Local newspaper ad spending fell 10.2%, while national fell 8.9%. Spanish-language newspapers saw a nearly 13% decline in ad spending.
Radio advertising suffered the second-largest drop, at 8.8%. National radio spot ad spending plunged 11.1%, while local spending tumbled almost 9%. Network radio programming saw a decline of just 2.6%.
In magazines, ad spending fell 3.9%. Within the category, the biggest decline was seen among business-to-business magazines, where spending dropped nearly 7%. Local magazine ad spending fell 6.5%, and consumer magazines saw a 3.8% drop-off, triggered by decreased advertising across the apparel, direct-response and pharmaceutical segments.
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