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Advertising Expenditures

Advertising Expenditures

May 1, 2010 12:00 PM

Sign Off, May 2010

Kantar Media recently released a study on advertising expenditures, noting a fall of 12.3 percent in 2009 to $125.3 billion. Fourth quarter 2009 ad spending was off 6 percent against 2008, with nearly all media improving upon their January-September performance. Jon Swallen, SVP Research at Kantar Media said, “Given the restraint in consumer spending, it appears marketers have more confidence right now than their customers. As we get deeper into 2010, the pace of consumer activity will be a key determinant of the strength and durability of the advertising recovery.”

Amount spent on measured media by the top 10 advertisers of 2009, which was just 0.9 percent lower compared to their 2008 outlays.

Behind the stat

Percent Change in Measured Ad Spending 2008 vs. 2009

1. Local Radio includes expenditures for 32 markets in the U.S.
(Click image to enlarge.)

Increase in Internet display advertising expenditures in 2009.

Increase in Wal-Mart’s 2009 advertising budget behind the launch of its “Save Money, Live Better” campaign.

Increase in Pfizer spending as the company boosted marketing support for Lipitor ahead of the brand’s 2011 patent expiration.

Amount Sprint Nextel hiked its expenditures, battling for market share against its larger wireless rivals.

Top 10 Advertising Categories: Jan-Dec 2009 vs. Jan-Dec 20082

RankCategoryJan-Dec 2009 (Millions)Jan-Dec 2008 (Millions)% Change 1Automotive
(-36.0%) 2Telecom$8,606.8$8,470.11.6% 3Financial Services$7,820.1$9,572.1-18.3% 4Local Services$7,490.9$8,628.0-13.2% 5Miscellaneous Retail3$7,124.7$8,361.7-14.8% 6Direct Response$6,626.5$7,489.9-11.5% 7Food & Candy$6,261.0$6,046.83.5% 8Restaurants$5,541.2$5,718.7-3.1% 9Personal Care Products$5,538.9$6,026.6-8.1% 10Pharmaceuticals$4,751.8$4,575.03.9% TOTAL4$70,739.4$79,228.0-10.7%

2. Figures do not include free standing insert or PSA activity.
3. Miscellaneous Retail does not include: department stores, home furnishing/building supply stores.
4. The sum of the individual categories may differ from the total due to rounding.