A little bit of encouraging news on ad spending - according to data released by Kantar Media, the advertising recession began to ease in the final two months of 2009 and preliminary figures from the first quarter of 2010, indicate many sectors are experiencing growth when compared against the same period of a year ago.
According to Knantar, total advertising expenditures fell 12.3% in 2009 to $125.3 billion as compared to 2008. Fourth quarter 2009 ad spending was off 6.0% against the same period a year ago, with nearly all media improving upon their January-September performance.
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.
Internet display advertising expenditures increased 7.3% in 2009, aided by sharply higher spending from the telecom, factory auto and travel categories. Free Standing Inserts achieved growth as well, up 3.0% as marketers targeted value-conscious shoppers with couponing programs.
National TV media continued to outperform the overall ad market. 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 11.0% and Consumer Magazines were down 16.6%.
Promotional product sales figures are not compiled on a quarterly basis -- just yearly -- and total sales for 09 were down about 25% industry wide. However, what I am hearing from suppliers - and my fellow sales reps - is that things appear to be on the upswing based on number of orders placed, requests for quotes etc.
So far, so good, but I'm curious about the impact of the health care issue, should Congress pass a reform bill this weekend.
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