Ad spending dropped 3.7% in the second quarter of 2008 from the same period a year ago, the biggest quarterly drop since 2001, according to figures released Wednesday by TNS Media Intelligence.
For the first half of the year, ad spending in all measured media was down 1.6%.
First-half ad spending in television was down 0.4%, with network TV registering a 2.4% decline, while cable grew at a 3.1% clip. Syndication expenditures jumped 10.2%, according to TNS.
“Advertising expenditures started to contract in March, well before the September turbulence on Wall Street renewed concerns about the health of the economy and possible collateral damage to the ad market,” said Jon Swallen, senior VP for research at TNS Media Intelligence. “Second-half results, particularly for television media, will be bolstered by the Summer Olympics and political elections. However, sustained improvement will most likely depend on a turnaround in consumer spending that rejuvenates corporate profits and encourages marketers to expand their advertising efforts.”
Display advertising on the Internet rose 8%.
“While expenditures are certainly indicative of the challenges being presented by the economy, they also suggest the continuation of the long-term trend of marketing dollars migrating to media such as the Internet, cable TV and syndication that provide the ability to more effectively target specific audiences,” said Dean DeBiase, CEO of TNS Media.  “With advertising budgets and [chief marketing officers] under pressure and uncertainties continuing to exist relative to consumer spending, it appears marketers are placing an emphasis upon enhanced efficiencies for their brands and the ability to engage with well-defined audiences to ensure ever greater return on investment.”