TNS Media Intelligence Reports U.S. Advertising Expenditures Declined 14.3 Percent in First Half 2009

Wed Sep 16, 2009 8:00am EDT

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NEW YORK--(Business Wire)--
Total measured advertising expenditures in the first six months of 2009 fell
14.3 percent versus a year ago, to $60.87 billion, according to data released
today by TNS Media Intelligence, the leading provider of strategic advertising
and marketing information. Ad spending during the second quarter of 2009 was off
13.9 percent compared to last year, the fifth consecutive quarter of
year-over-year declines. 

"The rate of decline in ad spending was level throughout the second quarter,"
said Jon Swallen, SVP Research at TNS Media Intelligence. "While it`s tempting
to interpret this as a positive indicator that things aren`t getting worse, the
fact remains that the market has been steadily tracking at around 14 percent
declines for several consecutive months and this represents billions of lost
revenue. Early data from third quarter hint at possible improvements for some
media due to easy comparisons against distressed levels of year ago

Ad Spending by Media

Internet display (+6.5%) and FSI`s (+4.6%) were the only media to achieve
expenditure growth in the first half of 2009. Each benefitted from larger budget
allocations by CPG marketers. Online publishers also capitalized on a spending
surge from wireless telecom operators. 

Print media continued to suffer large rollbacks in ad pages from key categories
and this resulted in aggregate spending declines of 24.2 percent for Newspaper
media and 20.9 percent for Magazine media. Within these broad sectors, there was
little difference in the performance of individual media sub-types. Total
spending in Radio media was down 24.6 percent due to ongoing weakness in
automotive, retail and local services. 

Among Television media, ad spending on Network TV declined 5.5 percent and Cable
TV slipped 3.6 percent in the first half of 2009. For both, Q2 results were
slightly worse than Q1. Spot TV expenditures dropped 27.1 percent, buffeted by
the slump in auto and retail activity.

 Percent Change in Measured Ad Spending:                    
Jan-June 2009 vs. Jan-June 2008 1                         
 MEDIA SECTOR                                  % CHANGE  
 • Media Sub-Type                                      
(Listed in rank order of 2009 spending)                
 TELEVISION MEDIA                              -10.0%    
 • Network TV                                  -5.5%     
 • Cable TV                                    -3.6%     
 • Spot TV 2                                   -27.1%    
 • Syndication - National                      -0.7%     
 • Spanish Language TV 3                       -12.7%    
 MAGAZINE MEDIA 4                              -20.9%    
 • Consumer Magazines                          -20.1%    
 • B-to-B Magazines                            -26.7%    
 • Sunday Magazines                            -18.6%    
 • Local Magazines                             -25.7%    
 • Spanish Language Magazines                  -27.3%    
 NEWSPAPER MEDIA 5                             -24.2%    
 • Newspapers (Local)                          -24.1%    
 • National Newspapers                         -24.9%    
 • Spanish Language Newspapers                 -20.5%    
 INTERNET (display ads only)                   6.5%      
 RADIO MEDIA                                   -24.6%    
 • Local Radio 6                               -25.5%    
 • National Spot Radio                         -29.2%    
 • Network Radio                               -8.7%     
 OUTDOOR                                       -15.7%    
 FSIs 7                                        4.6%      
 TOTAL                                         -14.3%    

 Source: TNS Media Intelligence                                                                                                                                                    
 1.    Figures are based on the TNS Media Intelligence Stradegy multimedia ad expenditure database across all TNS MI measured media, including: Network TV; Spot TV (122 DMAs);  
       Cable TV (67 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (230 publications); Sunday Magazines (7 publications); Local Magazines (21   
       publications); Hispanic Magazines (16 publications); Business-to-Business Magazines (318 publications); Local Newspapers (145 publications); National Newspapers (3       
       publications); Hispanic Newspapers (48 publications); Network Radio (5 networks); Spot Radio; Local Radio (32 markets); Internet; and Outdoor. Figures do not include     
       public service announcement (PSA) data.                                                                                                                                   
 2.    Spot TV figures do not include Hispanic stations.                                                                                                                         
 3.    Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable networks and 71 local Hispanic TV stations.                                                  
 4.    Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications.                                                              
 5.    Newspaper media figures reflect print editions of publications.                                                                                                           
 6.    Local Radio includes expenditures for 32 markets in the U.S.                                                                                                              
 7.    FSI data represents distribution costs only.                                                                                                                              

Ad Spending by Advertiser

The top 10 advertisers in the first six months of 2009 spent a combined total of
$7,866.4 million, a 3.5 percent decrease from last year. Across the top 100
companies, a more diversified group of marketers representing almost one-half of
total ad expenditures, spending fell by 6.2 percent. 

Verizon Communications edged out Procter & Gamble to claim the top spot in the
rankings. The telecom behemoth spent $1,188.4 million, up 3.1 percent from last
year. Its two leading competitors also landed in the top ten. AT&T was the third
largest advertiser with total ad expenditures of $976.8 million, up 6.3 percent
versus a year ago. Sprint Nextel, after slashing its ad budgets in 2008,
reversed course and spent $631.1 million, a gain of 55.3 percent. 

Procter & Gamble slipped to second position in the rankings after reducing its
half-year spending by 20 percent, to $1,178.4 million. The company pared its TV
budgets by 30 percent while leaving magazine spending untouched. The only other
packaged goods marketer in the top 10 was Johnson & Johnson which spent $805.9
million, up 18.0 percent. 

General Motors had the largest budget reduction among the Top 10 with spending
down 25.9 percent to $773.1 million and was the only auto maker to make the

Media companies rounded out the Top 10 with General Electric posting a spending
increase of 5.1 percent while News Corp., Time Warner and Walt Disney each
finished the period with decreases. At each of these advertisers, results were
primarily shaped by their movie studio divisions.

 Top Ten Advertisers: Jan-June 2009 vs. Jan-June 20081                                             
 Rank    Company                         Jan-June 2009      Jan-June 2008      %        
                                         (Millions)         (Millions)         Change   
 1       Verizon Communications Inc      $1,188.4           $1,152.6           3.1%     
 2       Procter & Gamble Co             $1,178.4           $1,472.9           -20.0%   
 3       AT&T Inc                        $976.8             $919.3             6.3%     
 4       Johnson & Johnson               $805.9             $683.1             18.0%    
 5       General Motors Corp             $773.1             $1,043.5           -25.9%   
 6       News Corp                       $672.3             $722.4             -6.9%    
 7       Sprint Nextel Corp              $631.1             $406.5             55.3%    
 8       Time Warner Inc                 $574.3             $645.7             -11.1%   
 9       General Electric Co             $548.3             $521.5             5.1%     
 10      Walt Disney Co                  $517.6             $585.9             -11.7%   
         Total                           $7,866.4           $8,153.3           -3.5%    

 Source: TNS Media Intelligence                            
 1 Figures do not include FSI, House Ads or PSA activity.  

Ad Spending by Category

The ten largest advertising categories in the first half of 2009 spent a total
of $33,588.8 million, a drop of 14.5 percent from a year ago. Automotive barely
held on to the top spot after expenditures plunged 31.1 percent to $4,449.5
million in response to depressed sales of new vehicles. Dealer spending was off
more sharply than manufacturers. Through June, auto advertising is pacing at a
level one-half its 2005 peak. 

Heightened competition among wireless phone companies and TV service providers
boosted Telecommunications category spending to $4,276.4 million, an increase of
7.5 percent. The only other top category to achieve a gain in the period was
Restaurants, up 0.6 percent to $2,886.4 million. 

Financial Services advertising sank 24.3 percent to $3,752.1 million. As
consumer lending seized up, credit card companies and loan providers severely
curtailed their marketing programs. 

Consumer-packaged goods, traditionally looked to as a pillar of strength in
advertising recessions, performed better than the overall ad market but still
wound up in negative territory. The Food & Candy category slipped 4.7 percent to
$3,031.9 million and Personal Care Products declined 9.7 percent to $2,662.5
million. Further down the rankings, other CPG segments also fell. Non-Rx
Remedies was 5.7 percent lower, at $1,799.4 million. Household Products was down
2.7 percent to $1,027.9 million.

 Top Ten Advertising Categories: Jan-June 2009 vs. Jan-June 2008                                     
 Rank    Category                         Jan-June 2009      Jan-June 2008      %         
                                          (Millions)         (Millions)         Change    
 1       Automotive                       $4,449.5           $6,462.0           -31.1%    
         • (Manufacturers)                ($3,168.7)         ($4,039.7)         (-21.6%)  
         • (Dealers)                      ($1,280.9)         ($2,422.3)         (-47.1%)  
 2       Telecom                          $4,276.4           $3,976.9           7.5%      
 3       Financial Services               $3,752.1           $4,955.0           -24.3%    
 4       Local Services & Amusements      $3,723.2           $4,423.3           -15.8%    
 5       Direct Response                  $3,277.4           $3,824.2           -14.3%    
 6       Miscellaneous Retail1            $3,142.1           $3,833.1           -18.0%    
 7       Food & Candy                     $3,031.9           $3,181.2           -4.7%     
 8       Restaurants                      $2,866.4           $2,848.0           0.6%      
 9       Personal Care Products           $2,662.5           $2,947.6           -9.7%     
 10      Travel & Tourism                 $2,407.3           $2,840.6           -15.3%    
         TOTAL                            $33,588.8          $39,291.8          -14.5%    

 Source: TNS Media Intelligence                                                                                                     
 Note: Figures do not include FSI or PSA activity. The sum of the individual categories may differ from the total due to rounding.  
 1 Miscellaneous Retail does not include these retail segments: Department Stores, Home Furnishing & Appliance Stores.              

Elsewhere, the impact of the housing market slowdown was reflected in sharply
lower ad spending from housing-related categories.

 Housing-Related Advertising Categories: Jan-June 2009 vs. Jan-June 2008                    
 Category                           Jan-June 2009      Jan-June 2008      %        
                                    (Millions)         (Millions)         Change   
 Home & Building Retailers          $1,696.7           $2,220.6           -23.6%   
 Real Estate                        $551.3             $1,118.2           -50.7%   
 Home Furnishings & Appliances      $428.7             $530.3             -19.2%   
 Building Materials                 $357.2             $428.4             -16.6%   
 TOTAL                              $3,033.9           $4,297.5           -29.4%   

 Source: TNS Media Intelligence                     
 Note: Figures do not include FSI or PSA activity.  

Branded Entertainment

TNS Media Intelligence continuously monitors Branded Entertainment within
network prime time and late night programming. The tracking identifies Brand
Appearances and measures their duration and attributes. Given the short length
of many Brand Appearances, duration is a more relevant metric than a count of
occurrences for quantifying and comparing the gross amount of brand activity
that viewers are potentially exposed to in the program versus in the commercial

In the second quarter of 2009, an average hour of monitored prime time network
programming contained 9 minutes, 51 seconds (9:51) of in-show Brand Appearances,
a 19 percent increase from a year ago. In addition, there was 14:05 per hour of
network commercial messages. The combined total of 23:56 of marketing clutter
represents 40 percent of a prime-time hour. 

Unscripted reality programming had an average of 16:42 per hour of Brand
Appearances as compared to just 5:52 per hour for scripted programs such as
sitcoms and dramas. 

Late night network talk shows averaged 11:31 per hour of Brand Appearances. The
combined clutter level of Brand Appearances and network ad messages in these
shows reached 26:48 per hour, or 45 percent of total programming time.

 Brand Appearances vs. Advertising: Q2 2009                            
(minutes:seconds per hour)                                           
                                 BRAND             AD MESSAGES1  
 PRIME TIME NETWORK              9:51              14:05         
 Unscripted Programs             16:42             14:49         
 Scripted Programs               5:52              13:40         
 LATE NIGHT NETWORK              11:31             15:17         
 (Kimmel, Leno, Letterman)                                       

 Source: TNS Media Intelligence                                                                             
 1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded.  

Among all monitored network programming during the period, Hell`s Kitchen had
the highest average volume of Brand Appearance time at 58 minutes, 14 seconds
(58:14) per hour. Rounding out the top five were Celebrity Apprentice (49:58);
Biggest Loser: Couples (45:02); American Idol (42:44); and Chopping Block

About TNS Media

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seven days a week, and offers a full range of insights, analyses and audience
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TNS Media combines the deepest expertise in the industry to provide media and
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information, please visit . 

About Kantar Group and TNS

The Kantar Group is one of the world's largest research, insight and consultancy
networks. By uniting the diverse talents of more than 20 specialist companies -
including the recently-acquired TNS - the group aims to become the pre-eminent
provider of compelling and actionable insights for the global business
community. Its 26,500 employees work across 80 countries and across the whole
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group`s services are employed by over half of the Fortune Top 500 companies. For
further information, please visit . 

Daddi Brand Communications Inc,
Bill Daddi, 212-404-6619

Copyright Business Wire 2009