U.S. Ad Volume Recedes for Second Consecutive Quarter, Internet, Magazines Rise
U.S. measured media as spending fell 0.3 pct to USD 72.59 billion during the first half of 2007, as the ad economy shrunk for the second consecutive quarter this year, according to estimates released this morning by ad tracking firm TNS Media Intelligence. The pattern is significant, said TNS MI President-CEO Steven Fredericks, because it is the first time since 2001 that spending declined for two consecutive quarters – a trend economists look at closely for signs of recession. “While the protracted downturn in automotive spending has been a prime contributor, the overall results reflect weakness across a wide range of industries and advertisers,” Fredericks stated. “Given the uncertainties about near-term economic growth and consumer spending, we expect core ad spending will continue to face challenges during the second half of the year.”
Not all media are suffering as a result of the downturn. Internet display advertising maintained its growth leadership position, registering a 17.7 pct increase to USD 5.52 billion. TNS MI does not currently track online search advertising, which is believed to be fueling even greater growth in the online sector.
Consumer magazines posted a 6.9 pct gain to USD 11.50 billion in advertising. Outdoor expenditures were up 3.6 pct to USD1.90 billion and Cable TV followed with a 2.8 pct increase to USD8.38 billion.
Broadcast TV media continued to experience weakness in the second quarter and turned in significant half-year declines. Network TV expenditures fell 3.6 pct to USD11.84 billion, while ad spending on Spot TV dropped 5.4 pct to USD 7.29 billion. Syndication TV was down 5.3 pct to USD 2.00 billion.
Newspaper and radio media also saw widening losses during the second quarter. For the half-year period, ad spending in Local Newspapers plunged 5.7 pct to USD 11.09 billion on a reduction of 4.7 pct in space sold. Marketers lowered their radio advertising budgets by 2.7 pct , to a total of USD5.14 billion.
