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Kantar Media Reports Increase in U.S. Advertising Expenditures

September 11, 2012
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NEW YORK—Sept. 11, 2012—Total advertising expenditures in the second quarter of 2012 increased 0.9 percent from a year ago and finished the period at $34.4 billion, according to data released today by Kantar Media, the leading provider of strategic advertising and marketing information. Total spending for the first six months of the year grew 1.9 percent to $67.1 billion.

“Ad spending growth sputtered during the second quarter and was unable to sustain its early year momentum,” said Jon Swallen, chief research officer at Kantar Media North America. “The advertising market is mirroring the tepid, slow growth performance of the general economy. Third quarter results will get a short-term boost from the Summer Olympics and political advertising but sustained long-term improvement will probably be linked to the health of consumer spending on the goods and services that marketers provide.”

Measured Ad Spending By Media

Television continued to lead the ad market in the second quarter of 2012, with overall growth of 4.4 percent. Cable TV expenditures rose 4.2 percent and growth was driven by sports programming and networks with larger audience ratings. Network TV spending was down 0.4 percent and comparisons were hurt by a timing shift that moved ad money for NCAA Final Four games out of April and into the prior quarter.

There were isolated pockets of growth beyond the television sector. Network Radio spending rose 20.0 percent but comparisons were inflated by the addition of more radio programming to Kantar Media’s monitoring. Expenditures in Outdoor media rose 2.5 percent, the ninth consecutive quarter of year-over-year increases, and were spurred by healthy gains from local retail and service businesses.

Internet Display advertising fell 5.4 percent in the second quarter. Spending totals, which do not include either video or mobile ad formats, were impacted by a reduced volume of ad impressions with some offset from higher average CPMs.

Print media continued to lose ground. Ad spending in Sunday magazines declined 7.6 percent and consumer magazines dropped 2.6 percent due to steep cutbacks from pharmaceutical companies and auto manufacturers.

Local newspaper budgets were down 1.9 percent as weaker spending by financial services, travel and telecom marketers erased increases from retailers and auto dealers. National newspapers suffered spending reductions across key advertising categories as its total expenditures tumbled 10.7 percent during the quarter.

Measured Ad Spending by Advertiser
Spending among the 10 largest advertisers in the second quarter of 2012 was $3,578.0 million, a 5.5 percent decrease compared to a year ago. Among the top 100 marketers, a diversified group accounting for more than two-fifths of all measured ad expenditures, budgets rose 1.1 percent.
 

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