Media reports U.S. advertising expenditures increased 3.5% in Q2
(September 9, 2013) Total advertising expenditures in the second quarter
of 2013 increased 3.5 percent from a year ago and finished the period at
$35.8 billion, according to data released today by Kantar Media, the
leading provider of strategic advertising and marketing information.
Total spending for the first six months of the year grew 2.0 percent to
"Ad spend has now increased for six consecutive quarters and in reaching
3.5 percent growth for Q2, had its best performance in a non-Olympic
period since the end of 2010," said Jon Swallen, Chief Research Officer
at Kantar Media North America. "However, the gain was boosted by two
unusual phenomena. On one side, year ago spending was deflated by major
advertisers who conserved budgets in advance of the Summer Olympics and
this makes current year growth appear larger. On the other side, there
were more NBA playoff games this year and it generated a sizable
windfall of extra TV ad revenue. Without these factors, Q2 ad spend
growth would have been lower by about one full percentage point."
Measured Ad Spending By Media
Television media continued to headline the ad market in the second
quarter of 2013 with overall growth of 6.4 percent, thanks in part to
post-season basketball games. Cable TV spending jumped 14.9 percent due
in part to a larger number of NBA playoff telecasts as well as higher
primetime ad prices at leading networks.
Network TV expenditures rose 4.9 percent, with comparisons helped by the
extra revenue from a seven game NBA championship series (versus five
games in 2012). An additional benefit came from a timing shift that
moved ad money for NCAA Final Four basketball games out of March and
Spanish Language TV spending increased 6.1 percent in the second quarter
on higher budgets from direct response marketers, auto manufacturers and
restaurants. Hispanic networks continue to see stronger results than
local market Hispanic stations.
Spot TV expenditures declined 3.5 percent in the period. The reduced
volume of political ad spending that regularly occurs in odd-numbered
years is becoming more of a drag for local stations as the year
progresses. Excluding the political category, Spot TV ad spending in Q2
was level versus a year ago.
Internet Display advertising increased 4.1 percent during the period.
Spending totals, which do not include either video or mobile ad formats,
got a significant lift from both financial service and telecom
advertisers. Investments by travel and tourism advertisers also
increased leading into the key summer vacation season.
Consumer Magazines registered an expenditure increase of 1.9 percent as
calculated by rate card prices but this was tempered by a 2.1 reduction
in the number of ad pages sold. Sunday Magazines had a similar pattern
with expenditures up 4.1 percent but ad pages down 6.3 percent.
Newspaper media continued to lose ground in the quarter. Local Newspaper
ad spending declined 4.3 percent on weakening budgets from auto dealers,
financial services and retailers. National Newspapers were down 0.5
percent. (Both Consumer Magazines and Newspaper media spend figures are
based on print editions only.)
Radio experienced mixed results. Spending in National Spot Radio rose
5.8 percent with strong demand from telecom, restaurants and retail
segments. Local Radio fared less well as quarterly expenditures dropped
Measured Ad Spending By Advertiser
Spending among the ten largest advertisers in the second quarter of 2013
was $4,062.3 million, a 15.7 percent increase compared to a year ago.
Among the Top 100 marketers, a diversified group accounting for more
than two-fifths of all measured ad expenditures, budgets rose 10.0
Procter & Gamble was the top-ranked advertiser in the period; its
measured spending surged 35.3 percent to $804.8 million. Large increases
were also posted by AT&T (up 33.2 percent, to $501.8 million) and
General Motors (up 28.0 percent, to $378.6 million). Growth rates were
artificially boosted for all three marketers because spending rates in
the year ago period were below normal, as the companies moved budgets
into July and August to fund costly Summer Olympics sponsorships.
Because of this timing phenomenon, P&G, AT&T and GM are less reliable as
a benchmark when analyzing the Q2 2013 ad marketplace.
The largest rate of increase among the Top Ten advertisers came from
Pfizer, which raised expenditures 54.0 percent to $303.9 million. The
catalyst was the consumer marketing launch of two new prescription
L'Oreal spending reached $397.9 million in the quarter, up 4.6 percent,
as it directed more support to the Lancome cosmetics line. Pepsico
entered the Top Ten rankings by spending $308.5 million, a 16.6 percent
increase. The company ramped up media investments for core brands
including Gatorade, Pepsi and Quaker.
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