According to a report released earlier this week by TNS Media Intelligence, total advertising spending dropped 4.1 percent in 2008 to $141.7 billion compared to the prior year. Ad spending in the fourth quarter of 2008 declined 9.2 percent compared to the same period a year earlier.
The whimpering finish to 2008 was the result of a “souring economy, deteriorating consumer confidence and weakening corporate balance sheets,” according to Jon Swallen, senior vice president at TNS Media Intelligence.
“Preliminary figures from the first quarter of 2009 indicate little change in the health of the overall ad economy as total spending continues to contract sharply,”
he added.
Internet display advertising grew 4.6 percent in 2008 compared to 2007. Still, this was the slowest growth seen since the dot com bust of 2002, according to the report. The online medium saw 7.0 percent growth for the fourth quarter of 2008 compared to the same period in 2007.
Syndication television saw 6.5 percent growth in 2008 compared to 2007, though it remained unchanged in the fourth quarter.
Advertising in Spanish language magazines grew 4.9 percent in 2008, and increased 3.4 percent in the fourth quarter.
Cable TV also saw growth, as ad spending grew 2.1 percent in 2008, though it saw a decline of 2.3 percent in the fourth quarter.
Free standing inserts saw ad spending increase 1.8 percent in 2008, and saw an even bigger rise in spending of 5.0 percent in the fourth quarter.
Spanish language TV saw a modest 0.1 percent increase in ad spending in 2008, though this was counteracted in part by a 0.1 percent decline in the fourth quarter.
Newspapers were hit the hardest of all media types as it experienced an 11.8 percent drop in ad spending in 2008 compared to 2007. Ad spending in the fourth quarter of 2008 plummeted 16.5 percent compared to the same period a year earlier.
Radio was also hit hard, as ad spending in this medium declined 10.3 percent in 2008, and 14.8 percent in the fourth quarter.
Magazines also saw a tough decrease in spending of 7.5 percent in 2008, and 13.9 percent in the fourth quarter.
The top 10 advertisers in 2008 spent $17.3 billion in 2008, a 2.1 percent drop from 2007.
Procter & Gamble Co. was the top advertiser in 2008, spending $3.2 billion, a 7.0 percent decline from its $3.4 billion in spending in 2007.
Time Warner Inc. pulled back the most of the top 10 advertisers in 2008, spending $1.3 billion, a 20.9 percent drop from its $1.6 billion in spending in 2007. The company finished as the seventh largest advertiser in 2008.
General Electric Co. was the top 10 advertiser to boost its spending the most, putting $1.2 billion into play in 2008, a 17.3 percent increase from its $1.0 billion spent in 2007. It finished 2008 as the ninth biggest advertiser.
Sources:</strong
Network
