Kantar Media Reports Increase in U.S. Advertising Expenditures

Percent change in measured ad spending across all media. (Double click chart to enlarge.)

Top 10 advertising categories.

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.

Lower spending from the top 10 group was most pronounced for a trio of advertisers (AT&T, General Motors, Procter & Gamble) that had expensive TV sponsorship positions in the Summer Olympics. Some of their second quarter reductions represent a deferral of spending into July and August to support Olympic marketing programs. Because of this timing phenomenon, the Top Ten advertisers are a less reliable benchmark when analyzing the Q2 ad marketplace.

Procter & Gamble was the top-ranked advertiser in the period, with measured spending of $577.3 million, down 13.2 percent. It was the sixth consecutive quarterly decline for P&G and is consistent with company announcements that it plans to tighten marketing budgets and shift more money out of traditional media.

The largest percentage drop among the top 10 marketers came from General Motors, which slashed its expenditures 30.1 percent, to $291.9 million. GM’s annual rate of measured ad spending is now at its lowest level in over a decade. By contrast, Toyota Motor spent $285.0 million in the second quarter, an increase of 22.7 percent compared to the year ago period when operations were severely curtailed by the Japanese earthquake and tsunami.

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