Kantar Media: U.S. Advertising Expenditures Increased 6.5 Percent in 2010

Wireless News
03-22-2011
Kantar Media: U.S. Advertising Expenditures Increased 6.5 Percent in 2010
Type: News

Total advertising expenditures increased 6.5 percent in 2010 and finished the year at $131.1 billion, according to data released by Kantar Media, a provider of strategic advertising and marketing information.

Kantar Media further noted that ad spending during the fourth quarter of 2010 was up 7.0 percent versus last year, propelled by the long-tail of small advertisers outside the Top 1000.
"The feel good headline is the ad economy grew by 6.5 percent in 2010," said Jon Swallen, SVP Research at Kantar Media North America. "The more comprehensive assessment is that increased spending has not benefitted all sectors equally. While television media have recouped their losses from the 2009 advertising downturn, several other large segments are still 15 to 20 percent below their 2008 peaks."

TV ad spending remained robust through year end. Spot TV expenditures jumped 24.2 percent in 2010 due to the biennial surge in political advertising, a revived automotive category and a pronounced budget allocation shift among retail bank advertisers. Spanish Language TV spending rose 10.7 percent, assisted by the World Cup event. Higher sell out levels helped lift Cable TV expenditures by 9.8 percent and healthy demand from CPG marketers and credit card companies pushed Network TV spending ahead by 5.3 percent.

Internet display advertising increased 9.9 percent compared to the prior year, the second largest growth rate among media sectors. Outdoor advertising was close behind with a gain of 9.6 percent.

Improvements in Radio advertising were tilted towards local markets. National Spot Radio brought in 18.6 percent more ad dollars versus 2009 and Local Radio achieved a 4.9 percent increase. For each of these, higher spending was driven by the financial service, media and auto dealer categories.

Growth rates for print media trailed the overall ad market. Expenditures in Consumer Magazines were up a modest 3.3 percent while National Newspapers rose 2.7 percent, primarily due to publishing expansion at the Wall Street Journal. Ad spending in Local Newspapers sank 4.6 percent versus a year ago despite a small uptick in the volume of space sold. Local Newspaper spending has now declined for 21 consecutive quarters.

More Information:

http://www.KantarMediaNA.com

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