Nielsen Wire » Annie Touliatos

U.S. Ad Spending Tumbles 15% in First Half 2009

admin — Tue, 01 Sep 2009 15:07:54 +0000

U.S. ad spending fell 15.4% in the first half of 2009, according to data released today by The Nielsen Company. A total of $56.9 billion was spent on advertising in the first six months of the year, more than $10.3 billion less than the same time period in 2008.

The automotive industry was the top spender ($3.68 billion), despite a 31% cut over last year. Local auto dealerships – also a perennial top-10 spending category – cut its ad budget 26% through June this year.

TOP TEN PRODUCT CATEGORIES, BY AD SPEND

RANK	NAME	Q1-Q2 2009 (millions)	Q1-Q2 2008 (millions)	% Change
1	Automotive (Factory & Dealer Assoc.)	$3,681.20	$5,363.60	-31.40%
2	Quick Service Restaurant	$2,200.70	$2,093.40	5.10%
3	Pharmaceutical	$2,148.00	$2,421.20	-11.30%
4	Wireless Telephone Services	$1,871.40	$1,847.10	1.30%
5	Motion Picture	$1,709.00	$1,680.70	1.70%
6	Auto Dealerships – Local	$1,688.50	$2,288.30	-26.20%
7	Department Stores	$1,565.80	$1,637.20	-4.40%
8	Direct Response Products	$1,260.10	$1,181.10	6.70%
9	Restaurants	$834.60	$867.70	-3.80%
10	Furniture Stores	$773.80	$802.90	-3.60%
	Total Top 10 Product Categories	$17,733.10	$20,183.10	-12.10%
Source: 2009 The Nielsen Company NOTE: Data excludes B-to-B Magazine spending

It wasn’t all bad news for the advertising industry this year. Cable TV was the only media category to see added spending with a 1.5% surge overall and a 0.6% increase for Spanish Language Cable TV. Quick Service Restaurants - the second highest-spending industry – spent $2.2 billion in the first half of ‘09, thanks to a 5% increase over the first half of 2008. And spending on multi-function cell phones more than doubled to almost $233 million.

“While some of the larger categories have cut back spending, we see others that continue to raise the ante on their media investments,” said Annie Touliatos, VP for Nielsen’s advertising information services. “What’s interesting is that we’re not just seeing a rise in spending for recession-friendly products like fast food restaurants. We’re seeing a lot more promotion of technological innovations like smartphones, computer software, and consumer-driven web sites. These advertisers see potential for their products despite our stressed economy and are leveraging advertising to drive their success.”

Read Nielsen’s complete release on Q2 Ad Spend.

Travel Ad Spending Takes Flight in 2008

admin — Tue, 23 Jun 2009 20:16:05 +0000

As most top industries cut their ad budgets in 2008, the travel and hospitality industry saw its ad spend increase four percent, according to an analysis by The Nielsen Company. The industry spent $3.9 billion in total advertising across 16 media last year.

“In a year where ad spending declined across the board, it’s refreshing to see travel and hospitality companies were expanding their reach to consumers,” said Annie Touliatos, VP for Sales Development at Monitor-Plus, Nielsen’s ad tracking service. “It shows the confidence they have that Americans are still looking to travel even in this down economy.”

Southwest Airlines led all advertisers in the industry with $191.6 million in ad expenditures in 2008 – 20 percent more than its total spend in 2007. Intercontinental Hotels – the parent company for Holiday Inn hotels – showed the largest growth among the top ten advertisers, upping its ad budget 29 percent to a toatal of $80.3 million.

Hotels and Resorts spent more than any other product category within the industry. Its $1.4 billion in ad buys represented almost 40 percent of the total industry’s advertising.

Download Nielsen’s full Hospitality and Travel Spotlight.

Networks Balance News vs. Bottom Line with Obama Press Conference

admin — Wed, 29 Apr 2009 13:54:11 +0000

President Obama marks his 100th day in office tonight with his third primetime press conference since January. The President’s request for air time adds a strain not only to each network’s news resources, but also to their overall bottom line.

It’s no secret that the 8pm hour generates much-needed ad dollars for broadcast TV networks. In February, ABC, CBS, FOX, and NBC combined to average $21.5 million in revenue on Wednesdays from 8pm to 9pm ET. With that kind of money in play, networks are forced to balance their public service duties with financial obligations.

So what happens to advertisers who pay good money to place ads on pre-empted primetime broadcasting?

“In a situation like that, networks will find other ways to make good on their deals with advertisers,” says Annie Touliatos, VP for Sales Development at Monitor-Plus, Nielsen’s advertising intelligence service. “They can shift programming or offer to run the ad another week. They can also spread the ad buy over several spots that offer the advertiser the same level of viewer impressions. The key is for advertisers to ensure they will reach their target audiences effectively.”

Nielsen Reports 2008 U.S. Ad Spend Down 2.6%

admin — Fri, 13 Mar 2009 13:48:42 +0000

Advertising expenditures dropped 2.6% overall last year, according to data released today by The Nielsen Company. “Given the state of the U.S. economy, a decline in ad spending was expected, but it’s not as bad as it could have been,” said Annie Touliatos, VP of Sales Development for Monitor-Plus, Nielsen’s ad tracking service. “The campaign season and the Summer Olympics were two big events that had a tremendous impact on advertising, especially on TV buys.”

The automotive industry’s ad spending fell hardest in 2008. The industry slashed its spending by almost $1.8 billion, or 15.5%. Among the Big Three automakers, Chrysler (Cerberus Capital Management) and Ford Motor Co. cut advertising 31% and 29%, respectively. General Motors trimmed its advertising 1%.

Pharmaceuticals also cut back its spending significantly, declining 18% and almost $1 billion compared to 2007. Quick Service Restaurants, however, was the only category in the top 5 to spend more in 2008, with 3.8% more expenditures in 2008.

RANK	Product Category	Jan-Dec 2008 (millions)	Jan-Dec 2007 (millions)	% Change
1	Automotive	$10,016.10	$11,854.40	-15.50%
2	Pharmaceutical	$4,344.10	$5,325.30	-18.40%
3	Auto Dealerships – Local	$4,198.30	$4,604.60	-8.80%
4	Quick Service Restaurant	$4,080.50	$3,932.80	3.80%
5	Department Store	$3,890.90	$3,994.20	-2.60%
6	Wireless Telephone Services	$3,431.40	$3,731.60	-8.00%
7	Motion Pictures	$3,322.10	$3,750.60	-11.40%
8	Direct Response Product	$2,576.90	$2,358.90	9.20%
9	Restaurant	$1,618.60	$1,619.40	0.00%
10	Furniture Stores	$1,580.80	$1,636.20	-3.40%
	Top 10 Product Categories	$39,060.00	$42,808.10	-8.80%
source: The Nielsen Company 2009

Cable TV was one of only two media (along with Hispanic Cable TV) whose ad spend showed growth in 2008. Its 7.8% jump in 2008 accounted for almost $2 billion in additional revenue for cable networks. Meanwhile, Network TV ad revenue declined 3.5% in 2008.

Print media continued its anticipated decline in 2008. Local and National Newspaper ad spends declined 10.2% and 9.6%, respectively. National Magazines fell 7.6%, while Local Magazines dropped 3.7%.

Procter & Gamble maintained its perch as the top advertiser this year, despite a 19% decline vs. 2007.

To see the full release from The Nielsen Company, including a media breakout and top advertising companies, click here.