U.S. Advertising Spending Rose 0.6% in 2007, Nielsen Reports
* Reuters is not responsible for the content in this press release.
NEW YORK, March 31 /PRNewswire/ -- The Nielsen Company today reported that
advertising spending for the full year 2007 rose 0.6% compared to full year
2006, with Internet continuing to demonstrate the strongest performance
(+18.9%) of any media category.
According to preliminary figures from Nielsen Monitor-Plus, the leading
provider of competitive advertising information, advertising spending was
mixed across media with gains in some categories and declines in others. In
addition to Internet advertising, other media categories that showed an
increase in 2007 were National Magazines (7.6%), Outdoor (7.2%), National
Sunday Supplements (4.9%), National Cable TV (2.2%), and Spanish-Language TV
(1.5%).
"Several traditional media outlets are demonstrating resilience and strong
growth in an overall softening economy, with Outdoor continuing a five-year
steady climb in advertising spending," said Annie Touliatos, Director, Product
Development and Marketing, Nielsen Monitor-Plus.
Media Category 2006 vs. 2007
% Change
Internet 18.9 %
National Magazines 7.6 %
Outdoor 7.2 %
Nat'l Sunday Supplements 4.9 %
National Cable TV 2.2 %
Spanish-Language TV 1.5 %
Network TV -1.5 %
Local Magazines -1.7 %
Spot Radio -2.0 %
Spot TV Markets 101-210 -2.6 %
Network Radio -3.9 %
B-to-B Magazines -4.0 %
Local Sunday Supplements -4.9 %
Spot TV Markets 1-100 -5.1 %
Local Newspaper -7.5 %
Nat'l Newspaper -7.7 %
Total Advertising Spending 0.6 %
Source: Nielsen Monitor-Plus
-Syndicated TV and FSI Coupons were excluded due to methodology changes
-Newspaper reflects display ads only
U.S. advertising growth was substantially lower than other regions of the
globe, with Asia-Pacific reporting a 12.1% increase and EMEA (Europe, Middle
East, and Africa) up nearly 5%. Specifically, Newspapers have shown a steady
decline year-over-year in the U.S., while all other countries measured by The
Nielsen Company reported growth for this media category.
Advertiser Spending
Advertising spending across monitored media for the top 10 companies in
2007 reached $17.9 billion, down an average of 4% from 2006. Seven out of the
ten advertisers decreased budgets. The three companies that increased their
spending were Procter & Gamble, Verizon Communications (+6% each), and AT&T
(+2%). Procter & Gamble, the largest advertiser and also the advertiser with
the largest increase in budget (+$205 million), boosted spending for many
brands including Pantene Pro-V Hair Care Products, Gillette Fusion Razor-
Electric Power, Cover Girl Volume Exact Mascara, and Olay Definity
Moisturizing Facial Deep Penetrating Foaming. In addition, many new brands
were introduced; of these, Secret Clinical Strength Antiperspirant/Deodorant
Advanced Solid had the largest advertising budget.
In contrast, General Motors showed the largest advertising spending
decline in terms of dollars (-$267 million). In 2007, GM cut back on
advertising for Chevrolet Tahoe Trucks, GMC Yukon Trucks, Buick Lucerne Autos,
and Hummer H3 Trucks, among others.
Parent Company Jan - Dec $ Change vs. % Change
2007 ($ mil) 2006 ($ mil) vs. 2006
Procter & Gamble Co. $3,728 $205 6 %
AT&T Inc. $2,151 $40 2 %
General Motors Corp. $2,028 -$267 -12 %
Ford Motor Co. $1,761 -$70 -4 %
Verizon Communications Inc. $1,659 $96 6 %
Time Warner Inc. $1,467 -$232 -14 %
Cerberus Capital Management
(Chrysler, Dodge, GMAC, Jeep) $1,363 -$144 -10 %
Johnson & Johnson $1,291 -$109 -8 %
Toyota Motor Corp. $1,255 -$97 -7 %
Walt Disney Co. $1,191 -$111 -9 %
Total Top 10 Companies $17,895 -$688 -4 %
Source: Nielsen Monitor-Plus
Based on spending estimates in the following media: Network TV, Cable TV,
Spot TV, Syndicated TV, Hispanic TV, Nat'l/Local Magazine, Network/Spot
Radio, Outdoor, Coupons (CPGs only), Nat'l/Local Newspapers (display ads
only), Nat'l/Local Sunday Supplements
Category Spending
Spending for the 10 largest product categories reached $44.6 billion in
2007, 3% less than in 2006. In all, six categories showed decreased spending
in 2007. The top category in terms of total dollars, Automotive, also had the
greatest dollar and percent decline (-$1.48 billion; -11%).
Financial/Investment Services had the fastest percentage growth (+14%), while
Wireless Telephone Services had the greatest dollar increase (+$422 million).
Within the Financial Services category, FMR Corp. was the top spender ($220.7
million), followed by Scottrade Inc. and Wachovia Corp., each with a budget of
$119 million. In the Wireless Product category, Verizon Communications Inc.
and AT&T Inc. were the top two advertisers in terms of total spending for
2007, each with a budget of $1.2 billion.
Product Category Jan - Dec 2007 $ Change vs. % Change
($ mil) 2006 ($ mil) vs. 2006
Automotive/Auto Dealer Assoc. $12,261 -$1,479 -11 %
Pharmaceuticals $5,375 -$173 -3 %
Automotive - Dealership (Local) $4,657 -$195 -4 %
Department Stores $4,113 -$260 -6 %
Wireless Telephone Services $4,084 $422 12 %
Quick Service Restaurants $3,959 -$166 -4 %
Motion Picture $3,842 -$77 -2 %
Direct Response Products $2,366 $125 6 %
Credit Card Services $2,160 $127 6 %
Financial-Investment Svcs. $1,776 $212 14 %
Top 10 Categories $44,592 -$1,464 -3 %
Source: Nielsen Monitor-Plus
Based on spending estimates in the following media: Network TV, Cable
TV, Spot TV, Syndicated TV, Hispanic TV, Nat'l/Local Magazine,
Network/Spot Radio, Outdoor, Coupons (CPGs only), Nat'l/Local
Newspapers (display ads only), Nat'l/Local Sunday Supplements
Product Placement
Broadcast Network Product Placement
Nielsen Product Placement Service reported an overall 13% increase in the
number of product placement occurrences in prime-time broadcast network
programming for 2007. The Top 10 programs featured 25,950 occurrences in 2007,
compared with 22,553 occurrences in 2006. "American Idol," with 4,349
occurrences, was the #1 show in terms of the number of product placements in
2007; the show held the same position in 2006, when it aired 4,086 brand
occurrences.
The Top 10 featured brands on prime-time broadcast network television for
2007 accounted for 11,666 occurrences; in comparison, the top ten brands
accounted for 10,320 occurrences in 2006. Coca-Cola, primarily through its
association with "American Idol," was the top brand in both 2206 and 2007,
with 3,174 occurrences in the last year. 24 Hour Fitness Centers (1,931
occurrences) and Chef Revival Apparel (1,257 occurrences) round out the top
three brands on Broadcast television in 2007.
Top 10 Programs for 2007:
Product Placement on Broadcast TV
Total #
Program Network Occurrences
American Idol FOX 4,349
The Biggest Loser NBC 3,286
Fast Cars and Superstars ABC 3,231
America's Next Top Model CW 2,694
Extreme Makeover Home Edition ABC 2,612
Deal or No Deal NBC 2,144
CW Now CW 2,049
Pussycat Dolls Present CW 1,934
Amazing Race All Stars CBS 1,893
Beauty and the Geek CW 1,758
Total 25,950
Source: Place*Views, Nielsen Product Placement Service
Cable Network Product Placement
Nielsen Product Placement Service reports an overall decrease of 9% in the
number of product placement occurrences in prime-time cable network
programming for 2007, based on the cable programs tracked on A&E, Bravo, HGTV,
MTV, and TLC. The Top 10 programs featured 163,737 occurrences for 2007 --
compared with 206,054 occurrences for 2006. "American Chopper," which
premiered on TLC in January 2007, was the #1 cable network show in terms of
the number of product placements, with 52,503 occurrences. "Miami Ink" (TLC,
20,594 occurrences) and "Dog the Bounty Hunter" (A&E, 19,179 occurrences) held
the second and third positions, respectively.
The Top 10 featured brands on prime-time cable network television for 2007
accounted for 43,475 occurrences -- a decrease from 53,530 in 2006. Three
apparel categories made the top 10: Orange County Chopper Apparel (the top
brand overall with 9,772 occurrences), Nike Apparel (3,002 occurrences), and
DeVille (2,557 occurrences).
Top 10 Programs for 2007:
Product Placement on Cable TV
Total #
Program Network Occurrences
American Chopper TLC 52,503
Miami Ink TLC 20,594
Dog The Bounty Hunter A&E 19,179
American Hot Rod TLC 14,281
Overhaulin' TLC 13,738
Run's House MTV 9,898
L.A. Ink TLC 9,462
Little People Big World TLC 8,400
Real Housewives of Orange County BRAVO 7,958
Flip This House A&E 7,724
Total 163,737
Source: Place*Views, Nielsen Product Placement Service
About The Nielsen Company
Nielsen Monitor-Plus is a service of The Nielsen Company, a global
information and media company with leading market positions in marketing
information (ACNielsen), media information (Nielsen Media Research), online
intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and
business publications (Billboard, The Hollywood Reporter, Adweek). The
privately held company is active in more than 100 countries, with headquarters
in Haarlem, the Netherlands, and New York, USA. For more information, please
visit, www.nielsen.com.
SOURCE The Nielsen Company
Anne Saini of The Nielsen Company, +1-646-654-8691
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.



Follow Reuters