Monday, November 11, 2013

TV And Declining Newspapers Dominate Display Advertising

Research Brief


by , Nov 8, 2013, 6:15 AM

According to Nielsen’s quarterly Global AdView Pulsereport, TV kept its position as the front-running media format for advertising in the second quarter of 2013. Global TV ad expenditures grew 4.2% on a year-over-year basis for the first half of 2013, accounting for 57.6% of total ad spend. Marketing budgets from all regions except the European region contributed to the growth in TV ad spending.
Media Share of Ad Spending YTD (% of Total; By Media)
Media% Share
Television
57.6%
Newspapers
18.9
Magazines
10.0
Outdoor
3.5
Radio
5.4
Internet
4.3
Cinema
0.3
Source: Nielsen, October 2013

Excluding television, traditional media budgets took some hits in the first half of 2013, as spending in newspapers, magazines and radio all declined in the first half (-2.0%, -1.9% and -0.9%, respectively), says the report. Even so, these three media categories hold the second, third and fourth ranks based on share of media spend. Ad spend in cinemas declined the most this quarter, dropping 5.9% because expenditures declined in all regions except Latin America.
Display Internet advertising, though measured in a small subset of countries, continued to experience double-digit increases in the first half of the year, growing 26.6% over the comparable period in 2012. 

As was the case in the first quarter of the year, Asia Pacific and Latin America contributed heavily to this growth, with increases of 43 and 38.5%, respectively.  Outdoor ad spend, the only media type to grow in all regions measured, grew 5%.
Media % Change YTD vs. 2012
Media% Change
Television
4.2%
Newspapers
-2.0
Magazines
-1.9
Outdoor
5.0
Radio
-0.9
Internet
26.6
Cinema
-5.9
Source: Nielsen, October 2013

Randall Beard, global head, Advertiser Solutions for Nielsen, says “… for every dollar spent on advertising this half, 57 cents was spent reaching TV watchers… advertisers are wisely maximizing their opportunities to reach consumers across platforms… TV ad dollars showing no signs of slowing and noteworthy increases in internet ad spend… “

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