Media and Money

Posts Tagged ‘ad revenue

The Nielsen Company reported that U.S. advertising for the first half of 2009 fell 15.4% compared to the first half of 2008. Preliminary figures show that U.S. ad expenditures declined over $10.3 billion to a total spend of $56.9 billion in the first two quarters.

Cable Television ad spending was the only medium to show growth through the first six months of the year (+1.5%). The increase is especially significant since Nielsen reported Cable TV ad spending was down 2.7% through the first quarter this year. Spanish Language Cable TV also saw ad spending tick up 0.6%.
The rest of Nielsen’s measured media showed year-to-year declines, ranging from Internet (-1.0%) to Local Sunday Supplements (-45.7%). African-American television (a subset of Network, Cable, Syndicated, and Local), continues to grow, increasing 14.3% through the first six months of 2009.

“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 the full 2009 Ad Spending Release from Nielsen

Harris Poll…One of the main purposes of advertising is to help consumers decide what products and services they should buy or use. With so many different types of advertising being used today the question becomes what types are considered most helpful, that is they help people decide what products or services to actually purchase and which ones are most likely to be ignored or disregarded? These are some of the results of a new AdweekMedia/The Harris Poll of 2,521 adults surveyed online by Harris Interactive between June 4 and 8, 2009.

What Ads Are Most Helpful?
Over one-third of Americans (37%) say that television ads are most helpful in making their purchase decision while 17% say newspaper ads are most helpful and 14% say the same about Internet search engine ads. Radio ads (3%) and Internet banner ads (1%) are not considered helpful by many people. Over one-quarter of Americans (28%), however, say that none of these types of advertisements are helpful to them in the purchase decision making process. Half of people aged 18-34 (50%) say television ads are most helpful while three in ten (31%) of those aged 55 and older say they find newspaper ads to be most helpful. There is also a slight regional difference. Two in five Southerners (40%) say they find television ads most helpful, while only one-third (33%) of Midwesterners feel the same.

What Ads do People Ignore?
Almost half of Americans (46%) say they tend to ignore Internet banner ads. Much further down the list are Internet search engine ads (17% of people ignore), television ads (13%), radio ads (9%), and newspaper ads (6%). One in ten Americans (9%) say they do not ignore any of these types of ads. There are age and regional differences. Half of those aged 35-44 (50%) and 51% of Midwesterners say they ignore Internet banner ads compared to 43% of 18-34 year olds as well as Easterners and Southerners. One in five Americans 18-34 years old (20%) say they ignore Internet search engine ads while 20% of those aged 55 and older say they ignore television ads.

So What?
While advertisers scramble to create their ad campaigns, one thing they need to remember is that, even if viewership may be down and even with the increased use of digital video recorders so people can fast forward through commercials, television ads are the most helpful to consumers. Also, while an Internet strategy is essential for a comprehensive ad campaign, Internet banner ads are not considered helpful by few and are ignored the most. People are more likely to ignore ads on their computers but are more likely to pay attention to those on their television.

For more than a year, the U.S. consumer hit by the recession has changed the way he or she shops: a focus on value for money has led to some dramatic shifts in behavior that some say will last far beyond the current economic environment. With 80 percent of Americans saying they were stressed due to the economy, savvy retailers and consumer goods manufacturers have shifted their marketing to appeal to consumers watching their money more closely. But have those ads been successful? Nielsen IAG examined 67 such ads from 11 national advertisers and found that the same creative attributes that make for good advertising also make for good value messaging.

In short, value-message and recession-themed ads did not break through TV ad clutter at higher than ordinary rates. In fact, ad recall of the 67 ads evaluated was at rates lower than historical averages for the 11 advertisers. Packaged goods manufacturers saw no decline, while retailers registered minor declines. Financial service, insurance, auto and telecom advertisers posted significant declines.

Read more by Alka Gupta, Senior Vice President, Consumer Goods Research, Nielsen IAG
Are Value-Themed Ads Making an Impact? | Nielsen Wire

Good news for newspapers. According to a forecast from Borrell Associates, though newspapers will be down this year, expect a 2.4% rebound in newspaper advertising in 2010, and continued single-digit increases over the next several years. By 2014, newspaper ad revenues will be up about 8.7% over 2009 levels. While national newspaper advertising will do just fine, we foresee the greatest growth in local print – going from $8.9 billion this year to $10.1 billion, a 13.4% increase.

hkg_hong_kong_advertisingNielsen recently surveyed over 25,000 consumers online across more than 50 markets from Europe, Asia Pacific, the Americas and the Middle East on their attitudes toward trust, value and engagement of advertising.

According to the survey, in North America, online consumers under the age of 20 exhibit higher than average degrees of trust in all forms of advertising. North American consumers aged 30–34 are the most likely to trust online advertising. Female consumers in North America are more engaged than males in TV ads in the dimensions of humor, emotion and information, especially when it comes to finding a TV ad emotionally touching. In North America, the oldest consumer group measured (65 and over) is the least engaged with TV advertising by these same dimensions, while the youngest group (under 20) registers the highest level of engagement with online video ads.
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MediaWeek reports Fox’s telecast of the 2009 Major League Baseball All-Star Game delivered an average audience of 14.6 million viewers, making it the most-watched midsummer classic since 2002.mlb all stars

Tuesday night’s contest now stands as the sixteenth most-watched sporting event of 2009 since Super Bowl XLIII, which drew a record 98.7 million viewers to NBC on Feb. 1. Also putting up big numbers this year were: the NCAA National Championship Game (17.6 million); the Kentucky Derby (16.3 million); Game 4 of the NBA Finals and the Daytona 500 (both drew 16 million).

(Counting the 10 NFL Playoffs that aired in January on Fox, CBS and NBC, the All-Star Game ranks 16th among all sports telecasts in 2009. For instance, the Jan. 18 Ravens-Steelers AFC Championship on CBS averaged 40.6 million viewers, while Fox’s presentation of the Eagles-Cardinals NFC Championship drew 38.4 million viewers. All told, the NFL Playoffs drew an average audience of 29.9 million viewers.)
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AP reports advertising forecaster, Magna, predicts that the worst is over for the U.S. ad slump but that across-the-board revenue growth won’t resume until well into 2011.

Magna, a unit of the Interpublic Group of Cos., estimated second-quarter ad revenue fell by 18 percent and said revenue will fall 14.5 percent for the year — the worst showing since the Great Depression.

“The economy accounts for the bulk of that decline,” said Brian Wieser, Magna’s global director of forecasting. “Every sector is being pulled down by this decline, every media that takes ad support.”
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