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Archive for the ‘online advertising’ Category

While most advertising sectors were pummeled during the first quarter, spending on Internet display ads jumped 8.2 percent compared to this time last year, according to a report released today by TNS Media Intelligence.

Internet display advertising was one of only two advertising sectors to post year-over-year gains in spending. The other category showing a gain — nationally syndicated TV shows ranging from Seinfeld to The Oprah Winfrey Show — posted a mere 0.2 percent increase in spending.

The TNS numbers conflict somewhat with a report that the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers International released last week. The IAB-PwC study showed a 5 percent year-over-year decrease in online advertising spending in the first quarter, and a 10 drop in online ad spending compared to the fourth quarter of 2008.

According to TNS, total U.S. ad expenditures dropped to $30.18 billion during the first quarter, down 14.2 percent compared to the same period last year. Among the sectors hardest hit were spending on national newspapers (down 25.5 percent); radio (down 26.2 percent); and magazines (down 20.5 percent).

Although TV ad spending also took a hit, it fared much better than print advertising. Spending on network TV fell 4.2 percent during the first quarter, while cable TV spending dipped 2.7 percent and spending on Spanish-language TV networks dropped 15.4 percent.

While Procter & Gamble was the biggest spender on advertising during the first quarter, shelling out $674.1 million on media, the consumer goods giant trimmed its ad budget by 17.8 percent compared to the first quarter of 2008, according to the TNS report.

Verizon was the second-largest advertiser, spending $577.1 million during the first quarter. It was followed by AT&T ($459.4 million); General Motors Corp. ($424.2 million); Johnson & Johnson ($397.2 million); News Corp. ($341.2 million); Sprint Nextel Corp. ($317.7 million); Walt Disney Co. ($303.7 million); Time Warner Inc. ($263.4 million); and General Electric Co. ($261.4 million).

Telecom companies and restaurants were the only two advertising categories to post spending increases during the first quarter, with telecom expenditures rising 3 percent and restaurant spending gaining 2.5 percent, TNS said.

It’s no surprise that automotive spending took the largest hit during the quarter, with auto manufacturers spending $2.3 billion on ads, down 28.4 percent compared to the first quarter. Local auto dealers slashed their budgets even further, spending $643.9 million on advertising, down 48.9 percent compared to this time last year.

Source: Steve Donohue, Contentinopole

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