US Advertising Spending Down 0.1% in First Three Quarters, Online Up 16%

December 21, 2007

This article is included in these additional categories:

Automotive | Broadcast & Cable | Free-Standing Inserts & Circulars | Magazines | Newspapers | Out-of-Home | Radio | Telecom | Television

Advertising spending for the first three quarters of 2007 was essentially flat – decreasing 0.1% over the same period last year – with internet ad spend growth (15.9% increase) the most of any category, The Nielsen Company reported.

Other categories that showed an increase during the first three quarters were National Magazines (7.7%), National Sunday Supplements (6.0%), Outdoor (5.7%) and National Cable TV (1.2%), according to preliminary figures from Nielsen Monitor-Plus.

nielsen-advertising-spend-growth-q1-q3-2007-vs-2006-by-medium.jpg

(Also see chart: “Share of Ad Spending by Medium – September 2007.”)

Additional data issued by Nielsen for the first three quarters of 2007:

Top 10 Advertisers’ Ad Spend

nielsen-advertising-spend-q1-q3-2007-top-advertiser-brands.jpg

Advertising spending across monitored media for the top 10 companies in the first three quarters of 2007 surpassed $12B, down from $13+B for the same time period in 2006.

Eight out of the top 10 advertisers decreased budgets. General Motors continues to show the largest decline.

Top 10 Categories’ Ad Spend

nielsen-advertising-spend-q1-q3-2007-top-advertising-categories.jpg

Spending for the 10 largest categories reached $20.8 billion in the first three quarters, 2.3% less than the same period last year:

  • Most product categories have decreased their ad spending, with the exception of Pharmaceuticals, Wireless Telephone Services, and Direct Response Products.
  • The top category in terms of increased ad spend was Wireless Telephone Services at 7.3%.
  • Verizon Wireless was the top brand in terms of total ad spending for this time period in the wireless product category at $449.2 million, and AT&T Wireless second at $402.5 million in ad spend.

Product Placement

Broadcast Network Product Placement

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Nielsen Product Placement Service reports an increased number of product placement occurrences in prime-time broadcast network programming for the first three quarters of 2007, based on its Top 10 Programs Broadcast Network ranking (ABC, NBC, CBS, FOX, CW & MyNetworkTV tracked):

  • The Top 10 programs featured 22,046 occurrences, compared with 19,125 for the same time period last year.
  • “American Idol” is once again the No. 1 show in terms of the number of product placements, a position it held last year.
  • During the first three quarters of 2007, American Idol featured 4,349 product placement occurrences.
  • The Top 10 featured brands on prime-time broadcast network television for first three quarters of 2007 accounted for 9,198 occurrences – a slight increase compared with the same time period last year, when 9,181 brands were reported.
  • Coca-Cola, primarily through its association with “American Idol,” was the top brand once again, with 3,111 occurrences for this time period.
  • Chef Revival apparel placed second with 1,256 product placements; Chef Revival Apparel outfits the cast on Fox’s reality program “Hell’s Kitchen.”

Cable Network Product Placement

nielsen-product-placement-cable-network-q1-q3-2007.jpg

Nielsen Product Placement Service reports a decrease in the number of product placement occurrences in prime-time cable network programming for the first three quarters of 2007, based on its Top 10 Programs Cable Network ranking (A&E, HGTV, MTV, TLC, BRAVO tracked):

  • The Top 10 programs featured 136,078 occurrences for the first three quarters of 2007 vs. 160,118 occurrences for the first three quarters 2006.
  • “American Chopper,” which premiered in Jan 2007, is the No. 1 cable network show in terms of the number of product placements, with 41,657 occurrences.
  • The Top 10 featured brands on prime-time cable network television for the first three quarters of 2007 accounted for 37,933 occurrences a decrease compared with the same time period last year, when 41,493 occurrences were reported.
  • Orange County Chopper apparel was the top brand with 8,030 occurrences for the first three quarters of 2007.
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