Spending on measured advertising took a nosedive during the first quarter, plunging by 14.2% to $30.18 billion compared to one year ago, according to TNS Media Intelligence.
The news is particularly alarming when compared to a 9.2% drop during the fourth quarter of 2008.
“The ad market declined significantly in the first quarter, overtaken by a collapsing economy which prompted consumers and marketers alike to shut their wallets and conserve,” Jon Swallen, senior vice president, research at TNS Media Intelligence, said in a release. “While there are hopeful signs of general economic indicators bottoming out, the advertising sector still appears to be lagging behind. Available data from second quarter shows ad expenditures tracking on a comparable plane to recent months.”
“As has traditionally been seen in recessionary periods, some sectors and brands are approaching a depressed marketplace as an opportunity to gain share and are increasing spending accordingly,” Dean DeBiase, CEO, TNS Media, said in a release. “The advertising industry, too, while struggling, is understanding this is a period for innovation and we are seeing efforts to reboot their approach through the advent of new technologies and tools such as addressable advertising, and the first steps to integrating ad measurement in a synergistic manner across all media platforms.”
The study also found:
Spending on local media dropped 25.4%
Local Newspapers (-25.1%)
Local Radio (-26.8%)
National Newspapers (-28.5%)
B-to-B Magazines (-25.5%)
Consumer Magazines (-19.2%)
Network TV (-4.2%)
Cable TV (-2.7%)
Syndication (+0.2%)
Internet display (+8.2%)
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