U.S. Advertising Spending Rose 0.6% in 2007, Nielsen Reports

* Reuters is not responsible for the content in this press release.

Mon Mar 31, 2008 1:25pm EDT

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.