Nielsen: Drop in black, Hispanic media advertising in '09 less than overall market

(March 12, 2010) According to a report released today by The Nielsen Company, spending on African-American and Spanish language media declined 7.3% and 4.7%, respectively, in 2009. The declines are consistent with the trend in overall advertising, although the drops aren't as deep. Last month, Nielsen reported that ad spending fell nine percent in 2009, despite significant increases in Cable TV.

African-American Ad Spending
Spending on African-American media saw a similar decline of 7.3% in 2009. The decline was paced by decreased spending in Network TV (-72%) and National Magazines (-33%).

Increased spending on Cable TV helped balance out the losses. Advertisers spent 35% more on African-American Cable in 2009, thanks to added spending by each one of the top 20 advertisers in the category.

Spot Radio earned the most revenue among African-American media in 2009. Advertisers spent $748 million on the medium last year, almost 10% less than in 2008.
 

African American Media
Media Type	2008 $ (000)	2009 $ (000)	% Change
Cable TV	539,193.6	728,440.8	35.1%
National Magazine	530,766.1	353,806.7	-33.3%
Spot Radio	826,824.5	747,794.7	-9.6%
Network TV	95,524.8	26,626.8	-72.1%
Syndicated TV	110,638.4	92,935.8	-16.0%
Total	2,102,947.5	1,949,604.8	-7.3%
Source: The Nielsen Company

Spanish Language Ad Spending
Nielsen found that Spanish Language advertising was down 4.7% in the U.S. last year. A total of $5.4 billion was spent on all Spanish Language media in 2009, down almost $270 million from the previous year. The slide was paced by significant declines in National Magazine and Local Newspaper advertising, which were down 38% and 25%, respectively.

The decreases in print media were offset by a 32% increase in Spanish Language Cable advertising. Nielsen found that 19 of the top 20 advertisers in the medium increased their ad spends year over year.

Spot TV was the top cash generator for Spanish Language media in 2009 with an estimated $1.4 billion in ad sales, down 10% compared to the previous year.

Spanish Language Media
Media Type	2008-$ (000)	2009-$ (000)	% Change
Local Magazine	988.2	0.0	-100.0%
Local Newspaper	103,144.6	77,059.5	-25.3%
National Magazine	182,096.7	112,558.7	-38.2%
Spanish Lang Cable TV	323,065.0	426,959.4	32.2%
Spanish Lang Network TV	2,982,158.3	2,866,092.5	-3.9%
Spot Radio	567,233.9	562,481.3	-0.8%
Spot TV	1,559,307.8	1,402,754.4	-10.0%
Total	5,717,994.5	5,447,905.7	-4.7%
Source: The Nielsen Company

Product Categories
The top spending product category for both Spanish Language and African-American media was Quick Service Restaurants. Advertisers within the category spent $335 million on Spanish Language media and $87 million on African-American media. McDonald's was the top fast food advertiser in both media segments.

The Automotive category was the next highest spender in both multicultural media. Spending in Spanish Language was down 39% in 2009, paced by double-digit percent losses by each of the top five auto advertisers. Spending by the auto industry in African-American media was down 18% year over year.

The category showing the most growth among the top 10 Spanish Language advertisers was Satellite TV providers. Advertisers in this category upped their ad spends 77% in 2009, as satellite TV companies made the pitch for their services in the run up to the DTV transition in June 2009. According to Nielsen data, a larger percentage of Hispanic households were not ready for the transition than non-Hispanic households at the end of 2008.

Insurance companies showed the most growth among the top 10 African-American media spenders. General Insurance and Car Insurance categories placed 8^th and 9^th after increases of 29% and 24%, respectively. The Motion Picture category showed similar growth, increasing its spend 24% to $72 million.

African American Categories
Product Category	2008-$ (000)	2009-$ (000)	% Change
RESTAURANT-QUICK SVC	72,909.6	86,906.8	19.2%
AUTOMOTIVE	105,005.7	85,851.1	-18.2%
STORE-DEPT	76,117.9	72,234.3	-5.1%
MOTION PICTURE	58,094.9	71,937.5	23.8%
TELEPH SVCS-WIRELESS	52,610.6	50,602.5	-3.8%
PHARMACEUTICAL	50,542.5	47,556.1	-5.9%
DIR RESP PROD	41,810.4	43,544.9	4.1%
INSURANCE	26,739.2	34,378.2	28.6%
INSURANCE-AUTO	26,285.0	32,521.9	23.7%
CREDIT SVCS	23,052.1	28,204.4	22.4%
Source: The Nielsen Company

African-American Methodology
- Radio: 105 stations across 34 markets. The following formats were included: Black News & Talk, Gospel, Urban Reggaeton, Smooth Jazz, Urban, Urban AC, and Urban Oldies.
- Network & Syndication TV: Programs with an African-American audience composition of 50% or greater.
- National Magazines: 12 national magazines
- Cable TV: BET & TV One, as well as other programs across various networks that achieve an African-American audience comp of 50% or greater and African-American P2+ projection of 100,000 or greater

Spanish Language Categories
Product Category	2008-$ (000)	2009-$ (000)	% Change
RESTAURANT-QUICK SVC	293,652.9	334,593.0	13.9%
AUTOMOTIVE	528,577.9	323,230.0	-38.8%
TELEPH SVCS-WIRELESS	316,808.3	305,463.7	-3.6%
STORE-DEPT	307,345.4	294,420.8	-4.2%
SATELLITE COMM SVCS	134,658.1	238,744.6	77.3%
DIR RESP PROD	220,632.3	237,227.6	7.5%
BEER	165,045.9	171,677.7	4.0%
LEGAL SVCS	89,684.3	123,847.0	38.1%
MOTION PICTURE	112,015.0	99,846.5	-10.9%
INSURANCE-AUTO	144,305.0	98,084.0	-32.0%
Source: The Nielsen Company

Spanish Language Methodology
- 5 television networks, 6 cable networks
- 53 local television stations across 27 markets
- 74 radio stations across 24 markets
- 8 local newspapers across 5 markets
- 20 national magazines


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