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African-American TV ad spending grew 31% in first three quarters
(December 10, 2009) According to Nielsen, spending on advertising fell
11.5 percent in the first three quarters of 2009, compared to the same
time period in 2008. Preliminary figures show that expenditures fell
$10.9 billion to a total spend of $83.4 billion in the first nine months
of the year.
One of the brightest spots in an otherwise dismal trend was
African-American TV (including Network, Cable, Syndicated, and Local
programs) which enjoyed a 31 percent increase in spending. It was the
second largest increase of any category.
Cable TV (+ 9.1%), Spanish Language Cable TV (+36.7%), and Free-Standing
Insert (FSI) Coupons (+11.2%) also posted growth. The remaining media
suffered declines, ranging from Internet (-0.5%) to Local Sunday
"The struggling economy continues to take its toll on the advertising
industry, with most sectors lower than last year," said Terrie Brennan,
Senior VP for New Business Development at Nielsen. "In general,
television -- particularly cable television -- seems to be holding up
better than print-based media. For example, Local Newspapers have seen
12,000 fewer advertisers in their pages in 2009. Meanwhile, nine of the
top ten Cable TV advertisers have increased their spending in the medium
so far this year."
Spanish language television's ad spend (cable and network combined) fell
a slight 0.7 percent. Overall, TV ad spending fell 8.3 percent
year-to-year through the first three quarters. But ads placed on
television accounted for 56.8 percent of all advertising expenditures so
far this year, up two percentage points over the same period in 2008.
Product Category Advertising Automotive continued its reign as the top ad-spending category
through the first three quarters of 2009, despite a nearly 31 percent
decline. The Pharmaceutical category placed a far second, even with a
4.6 percent decline of its own. Only two categories in the top ten
showed any growth: Direct Response Products (+3.3%) and Quick Service
Further Nielsen analysis of the top product categories unveils some
revealing insights on where their money was spent through the first
three quarters of 2009:
Almost 70 percent of all U.S. ad spending by the top ten product
categories was invested in television.
Despite Pharmaceutical's overall decline, the category upped its radio
ad spend 137 percent and its Internet spend increased by one-third.
Television ad spend by Quick Service Restaurants remained essentially
flat year-over-year, but the category dramatically boosted its print
(+42%) and Internet (+88%) budgets.
Local Auto Dealerships dropped their overall ad budgets 27 percent, but
increased Internet ad spends 45 percent. The category is also the only
one out the top ten that spent more on print media ($1.5 billion) than
TV ($610 million) in the first nine months of the year.