Ad spending in the first nine months of 2007 edged up 0.2% to $108.2 billion, according to TNS Media Intelligence. Spending rose 1.3% in the third quarter.
“The anemic growth rates in measured ad spending reflect a market that is under stress from cyclical business conditions and fundamental structural changes,” said Jon Swallen, senior VP of research at TNS. “Deepening concerns about lower corporate profits, a softening economy and reduced consumer spending have prompted marketers to be cautious with their advertising budgets. The ongoing shift of money toward untracked digital alternatives also contributes to the present slowdown in measured spending.”
Several top advertising categories have reduced spending so far this year. Telecom was hurt by cuts at Vonage and AOL; the auto industry is slumping; and the cooling housing market has curtailed real estate spending.
The chart below shows the top categories and changes in spending in the first three quarters of 2007.
|Top 10 Advertising Categories
Jan.-Sept. 2007 vs. Jan.-Sept. 2006
|Category||Jan.-Sept. 2007 ($ millions)||Jan.-Sept. 2006
|Local services and amusements||$6,573.8||$6,423.3||2.3%|
|Personal care products||$4,606.4||$4,254.0||8.3%|
|Travel & tourism||$4,051.1||$4,056.2||-0.1%|
Source: TNS Media Intelligence
Note: Figures do not include free-standing insert or public service announcement
activity. The sum of the individual categories may differ from the total due
* Miscellaneous Retail does not include these retail segments: department stores,
food stores, home & building supply stores