In Depth

Great Ad Spending Charts From Kantar Media For Full Year 2010: Percent Change in Ad Spending by Media Sector; Top 10 Advertisers; Ad Spending by Category; Branded Entertainment Stats

Percent Change in Measured Ad Spending1

 

MEDIA SECTOR

·    Media Type

(Listed in rank order of 2010 spending)

Full Year

2010 vs. 2009

TELEVISION MEDIA

10.3%

·    Network TV  

5.3%

·    Cable TV2

9.8%

·    Spot TV3

24.2%

·    Spanish Language TV4

10.7%

·    Syndication – National

-2.8%

MAGAZINE MEDIA5

2.9%

·    Consumer Magazines

3.3%

·    B-to-B Magazines

-1.2%

·    Sunday Magazines

4.6%

·    Local Magazines

0.9%

·    Spanish Language Magazines

5.5%

NEWSPAPER MEDIA6

-3.5%

·    Local Newspapers

-4.6%

·    National Newspapers

2.7%

·    Spanish Language  
            Newspapers

2.0%

INTERNET (display ads only) 7

9.9%

RADIO MEDIA

7.6%

·    Local Radio

4.9%

·    National Spot Radio

18.6%

·    Network Radio

2.2%

OUTDOOR

9.6%

FSIs8

5.4%

TOTAL

6.5%

 

Source: Kantar Media

1. Figures tabulated from Kantar Media’s Stradegy™ application and cover all measured media, including: Network TV (6 networks); Spot TV (125 DMAs); Cable TV (67 English language networks); Syndication TV; Spanish Language TV (4 Hispanic broadcast networks; 4 Hispanic cable networks; 71 Hispanic local TV stations); Consumer Magazines (226 publications);Sunday Magazines (87 publications); Local Magazines (27 publications); Hispanic Magazines (14 publications); Business-to-Business Magazines (277 publications); Local Newspapers (147 publications); National Newspapers (3 publications); Hispanic Newspapers (48 publications); Network Radio (5 networks); National Spot Radio (205 markets); Local Radio (32 markets); Internet (1,883 sites); and Outdoor. Figures do not include public service announcements (PSA) or House ads.

2. Cable TV figures do not include Hispanic cable networks.

3. Spot TV figures do not include Hispanic local stations.

4. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable network and 71 local Hispanic TV stations.

5. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications.

6. Newspaper media figures reflect print editions of publications.

7. Internet display expenditures are based on 1,883 sites with reportable activity for an equal number of months in both time periods

8. FSI data represents distribution costs only

 

 

Measured Ad Spending By Advertiser

Spending among the ten largest advertisers in 2010 reached $16,345.8 million, a 3.7 percent increase compared to last year. Among the Top 100 marketers, a diversified group accounting for close to one-half of all measured ad expenditures, investments climbed 8.8 percent.

 

For the eighth consecutive year, Procter & Gamble was the top advertiser with spending of $3,123.9 million, up 17.7 percent compared to a year ago.

 

L’Oreal posted the largest rate of increase among the Top Ten with expenditures soaring 30.6 percent to $1,112.4 million. The company boosted marketing support broadly across its portfolio of mass market and prestige cosmetics brands.

 

Among auto manufacturers, Ford Motor upped its total ad budgets by 11.1 percent to $1,132.2 million. Rival General Motors reduced spending slightly, down 1.3 percent to $2,130.7 million. For both companies, exceptionally high levels of ad support in Q4 2009 timed to the leading edge of the auto sales rebound made for difficult comparisons in Q4 2010 and pulled down the full year growth rates.

 

AT&T raised expenditures by 12.1 percent, to $2,092.8 million as it continued to expand marketing efforts for its residential and mobile TV services. Verizon Communications trimmed ad spending 15.2 percent to $1,823.2 million.

 

Significant reductions were seen in the ad budgets of Pfizer (down 11.7 percent to $1,228.7 million) and Johnson & Johnson (down 7.5% to $1,139.7 million).

 

Top Ten Advertisers:

Full Year 2010 vs. Full Year 20091

 

Rank

Company

Full Year 2010 ($Millions)

Full Year 2009 ($Millions)

% Change

1

Procter & Gamble Co

$3,123.9

$2,653.8

17.7%

2

General Motors Corp

$2,130.7

$2,157.9

-1.3%

3

AT&T Inc

$2,092.8

$1,867.0

12.1%

4

Verizon Communications Inc

$1,823.2

$2,149.7

-15.2%

5

News Corp

$1,368.4

$1,238.8

10.5%

6

Pfizer Inc

$1,228.7

$1,391.5

-11.7%

7

Time Warner Inc

$1,193.6

$1,200.0

-0.5%

8

Johnson & Johnson

$1,139.7

$1,232.6

-7.5%

9

Ford Motor Co

$1,132.2

$1,019.0

11.1%

10

L'Oreal Sa

$1,112.4

$852.0

30.6%

 

TOTAL2

$16,345.8

$15,762.3

3.7%

 

Source: Kantar Media

1.  Figures do not include FSI, House Ads or PSA activity.

2.  The sum of the individual companies may differ from the Total shown due to rounding.

 

 

Measured Ad Spending By Category

Expenditures for the ten largest advertising categories increased 6.5 percent and totaled $74,125.1 million.

 

Automotive was the leading category in both dollar volume and growth rate, finishing 2010 at $13,026.0 million, up 19.8 percent. Category spending grew almost twice as fast as new vehicle sales (19.8 percent versus 11.1 percent), reflecting a fiercely competitive marketing environment for manufacturers and dealers.

 

Telecom was the second largest category with 2010 budgets rising a modest 4.0 percent to $8,751.5 million. Lower spending by wireless carriers and satellite TV companies was offset by higher outlays from cable TV service providers.

 

Package goods advertising remained active at year end as a broad range of manufacturers sought to defend market share against value-priced store brands and generics. Expenditures for Personal Care Products were up 11.7 percent to $6,161.0 million and the Food & Candy category rose 7.1 percent to $6,672.3 million.

 

Ad spending for Financial Services increased 6.0 percent to $7,689.7 million. In the aftermath of the financial crisis, marketing activity has picked up noticeably for products related to debt (credit cards, consumer loans) while advertising budgets for savings related segments have lagged (investments, retail banking).

 

Only two of the Top Ten categories experienced year-over-year declines. Direct Response budgets fell by 5.8 percent to $6,143.5 million. Pharmaceutical expenditures dropped 8.2 percent to $4,327.8 million, the lowest dollar amount for this category since 2003.

 

Top Ten Advertising Categories:  Full Year 2010 vs. Full Year 20091

 

Rank

Category

Full Year 2010 (Millions)

Full Year 2009 (Millions)

% Change

1

Automotive

$13,026.0

$10,869.2

19.8%

 

·     (Manufacturers)

($8,224.1)

($7,066.3)

(+16.4%)

 

·     (Dealers)

($4,801.9)

($3,802.9)

(+26.3%)

2

Telecom

$8,751.5

$8,417.6

4.0%

3

Local Services

$7,991.7

$7,474.6

6.9%

4

Miscellaneous Retail2

$7,708.8

$7,055.7

9.3%

5

Financial Services

$7,689.7

$7,254.8

6.0%

6

Food & Candy

$6,672.3

$6,228.6

7.1%

7

Personal Care Products

$6,161.0

$5,515.2

11.7%

8

Direct Response

$6,143.5

$6,521.1

-5.8%

9

Restaurants

$5,652.8

$5,528.3

2.3%

10

Pharmaceuticals

$4,327.8

$4,716.0

-8.2%

 

TOTAL3

$74,125.1

$69,581.0

6.5%

 

Source: Kantar Media

1. Figures do not include FSI or PSA activity.

2. Miscellaneous Retail does not include these retail segments: Department Stores, Home Furnishing/Building Supply Stores.

3. The sum of the individual categories may differ from the total due to rounding.

 

 

Branded Entertainment

Kantar Media continuously monitors Branded Entertainment within network prime time and late night programming. The tracking identifies Brand Appearances and measures their duration and attributes. Given the short length of many Brand Appearances, duration is a more relevant metric than a count of occurrences for quantifying and comparing the gross amount of brand activity that viewers are potentially exposed to in the program versus the commercial breaks.

 

In the fourth quarter of 2010, an average hour of monitored prime time network programming contained six minutes, fifty seven seconds (6:57) of in-show Brand Appearances and 14:50 of network commercial messages. The combined total of 21:47 of marketing content represents 36 percent of a prime-time hour.

 

Unscripted reality programming had an average of 14:19 per hour of Brand Appearances as compared to just 4:50 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows had an average of 10:31 per hour. The combined load of Brand Appearances and network ad messages in these late night shows was 25:22 per hour, or 42 percent of total content time.

 

Brand Appearances vs. Advertising: Q4 2010

(minutes:seconds per hour)

 

 

Brand

Appearances

Network Ad Messages1

TOTAL

PRIME TIME NETWORK

6:57

14:50

21:47

     Unscripted Programs

14:19

15:06

29:25

     Scripted Programs

4:50

14:45

19:35

 

 

 

 

LATE NITE NETWORK

(Kimmel, Leno, Letterman)

10:31

14:51

25:22

Source: Kantar Media

1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded.

 

 

The top five brands ranked by total amount of Brand Appearance time were Chef Revival, Cybex exercise equipment, Yamaha music equipment, Bud Light beer and Asics footwear.