Ad Spending Stumbles; In TV, Only Cable Shines

Mar 25, 2008  •  Post A Comment

Advertising spending fell during the fourth quarter of 2007, leaving full year growth at a meager 0.2%, according to new figures from TNS Media Intelligence.
For the full year, advertiser spending on network TV dropped by 2% to $22.43 billion. Cable TV, helped by a second-half surge, finished at $17.84 billion, up 6.5%. Spot TV plummeted 10.2% to $15.59 billion. Syndication fell 1.5% to $4.17 billion.
“As a whole, the ad market remains stalled and is being engulfed by the spreading pessimism about general economic conditions,” said Jon Swallen, senior VP for research at TNS Media Intelligence. “Fourth-quarter performance was indicative of this malaise and early figures from 2008 suggest the growth rate for measured ad spending has not appreciably changed.”
A cyclical boost in ads related to elections and the 2008 Olympics is approaching, but marketers concerned about consumer spending and corporate profits are being cautious with their core budgets, he said.
For all measured media, total spending in 2007 was $148.99 billion, up 0.2% from the previous year.
Internet display advertising was the leader in spending growth, up 15.9% to $11.31 billion. Consumer magazines were up 7% to $24.43 billion and outdoor gained 4.9% to $4.02 billion.
Ad spending on newspapers dropped 5.6% and radio spending slid 2.5%.
For the fourth quarter, total ad spending fell by 0.1%.
(Editor: Baumann)


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