Kantar Media Intelligence just released 2011 Ad Expenditures Data. Quick Summary: General market media, including digital, but with the exception of TV stagnated during the last quarter of 2011 and in 2011 overall. However, Hispanic TV, Magazines and Newspapers all grew substantially (there is no data for Hispanic Digital).
Total advertising expenditures increased 0.8 percent in 2011 and finished the year at $144.0 billion, according to data released today by Kantar Media Ad spending during the fourth quarter of 2011 dropped 1.0 percent versus the year ago period, the first quarterly decline since the end of 2009. Since reaching a post-recession peak in Q3 2010, advertising growth rates have slowed sequentially for five consecutive quarters.
"The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011," said Jon Swallen, SVP Research at Kantar Media Intelligence North America. "Some mature digital media formats were also touched by the year-end tide of reduced spending. Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly towards emerging and unmeasured digital platforms bears watching as 2012 unfolds."
Measured Ad Spending By Media
Television continued to lead the ad market in the fourth quarter. Network TV expenditures jumped 7.7 percent year-over-year and were helped by strong pricing for football, a baseball World Series that went the maximum seven games and the launch of The X Factor singing competition program. The rate of Cable growth eased during Q4, finishing at +2.4 percent as higher demand from restaurants and retailers was offset by reductions from consumer packaged goods. For the full year, Network TV decreased by 2.0 percent while Cable rose 7.7 percent.
Spanish language TV ad spending surged 19.1 percent in fourth quarter, paced by higher sell-out levels at over-the-air networks. For all of 2011, the segment increased 8.3 percent.
Syndication TV benefitted from higher spending by department stores and health & beauty brands and saw expenditures soar 11.0 percent in Q4. Full year spending advanced by 15.4 percent.
Spot TV expenditures fell 8.7 percent in the fourth quarter but the more significant indicator was that November and December spending were each down, despite easy comparisons against diminished, post-election spending volume of a year ago. Full year Spot TV spending dropped 4.5 percent.
Free Standing Inserts achieved healthy gains in the fourth quarter with spend rising 3.0 percent. Although manufacturers have been distributing fewer FSI coupons, retailer promotion pages have increased significantly and this contributed to the improvement.
Ad expenditures for measured digital media declined in the fourth quarter. Paid Search budgets were 6.4 percent lower versus a year ago with continuing reductions from financial, insurance and local service advertisers. Display investments decreased 5.9 percent in Q4, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, Paid Search declined 2.8 percent and Display increased 5.5 percent.
Magazine ad spending eroded at year end. Consumer Magazines declined 5.2 percent in the fourth quarter due to deep cutbacks in auto, food and pharmaceutical advertising. Total year expenditures were level compared to prior year. Outlays in Sunday Magazines fell 9.8 percent in Q4, the sixth consecutive quarter of year-over-year declines, and were down 7.2 percent for all of 2011.
Local Newspaper ad expenditures fell 3.9 percent during the fourth quarter, hurt by the reallocation of retailer advertising budgets to other media channels during the key holiday shopping season. Full year spending was 3.8 percent lower. The losses in Newspaper spending are consistent with reductions in the amount of space sold.
The pace of spending in Radio media also sagged. Local Radio expenditures were down 3.8 percent and National Spot Radio plummeted 13.9 percent in the fourth quarter. The telecom, financial service and automotive categories were prime contributors to these quarterly decreases.
Percent Change in Measured Ad Spending1
(Listed in rank order of full year 2011 spending)