Ad revenue woes

Total advertising expenditures fell 12.3% in 2009 to $125.3 billion as compared to 2008, according to data information from Kantar Media

Kantar, a provider of strategic advertising and marketing information reports that fourth quarter 2009 ad spending was off 6% against the year ago period, with nearly all media improving upon their January-September performance.

“The advertising recession began to ease in the final two months of 2009 and preliminary figures from the first quarter of 2010, when compared against the abyss of a year ago, indicate many sectors are experiencing growth,” Kantar noted in a statement. “The advertising recession began to ease in the final two months of 2009 and preliminary figures from the first quarter of 2010, when compared against the abyss of a year ago, indicate many sectors are experiencing growth.”

OTHER FINDINGS
• Internet display advertising expenditures increased 7.3% in 2009, aided by sharply higher spending from the telecom, factory auto and travel categories.

• The only other media type achieving full-year growth was Free Standing Inserts, up 3% as CPG marketers targeted value-conscious shoppers with couponing programs.

• Cable TV expenditures dropped just 1.4%, helped by an expanding amount of commercial time. Network TV (-7.6%) and Spanish Language TV (-8.9%) each saw year-end improvement in key categories that lifted their results.

• Print media were hit by large reductions across a broad range of advertisers. Measured ad spending in the Newspaper sector plunged by 19.7% in 2009.

• Sunday Magazine expenditures declined 11% and Consumer Magazines were down 16.6%.

• According to Kantar: “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.”