A recent press release on Mediabids -
From Marketingcharts.org - full story here
Also see story below we linked to about the gross overestimates routine for online advertising.
US online ad spending will exceed the total spent on print magazines and newspapers this year for the first time, according to a January 2012 eMarketer estimate that projects $39.5 billion in online ad spending, $19.4 billion in newspaper ad spending, and $15.4 billion in magazine ad spending. eMarketer estimates that online ad spending will continue its dramatic growth to reach $62 billion by 2016, while the print total will continue to decline to $32.3 billion that year.
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US online ad spend is expected to grow by 23.3% this year, with double-digit growth continuing through 2014 before slowing to 8.9% in 2015 and 7.8% in 2016.
As online ad spending grows, so will TV, albeit more slowly, notes eMarketer, which estimates that US TV spending will reach $72 billion in 2016. At that point, the gap between TV and online ad spending will be $10 billion, compared to the $28.7 billion gap seen in 2011.
Overall, eMarketer projects total media ad spending to grow 6.7% this year to $169.5 billion, boosted by national election campaigns and gains in mobile spending. Growth will remain between 3-4% through 2016, with spending reaching almost $200 billion by then. And while online will be a major driver of that growth, traditional ad spending will for the most part stagnate during the period.
Total US advertising expenditures in the first 9 months of 2011 increased 1.5% from the previous year, finishing the period at $104.7 billion, according to December 2011 data from Kantar Media. Spending growth slowed during Q3, up 0.4% compared to 2010, after rising 4.1% in Q1 and 2.8% in Q2. Spending among the 10 largest advertisers in the first 9 months of 2011 was $11.8 billion, representing a 1.4% decline compared to the previous year. Procter & Gamble maintained its top-ranked position with spending of $2.1 billion through September, down 5.6% compared to 2010, although its Q3 spending was flat compared to the previous year.
Meanwhile, expenditures for the 10 largest categories grew 3.1% in the first 9 months of 2011, to $59.5 billion. For Q3, the aggregate increase was 1.8%, although quarterly growth rates for 7 of the 10 categories trailed their year-to-date average. Automotive was the top category with $9.9 billion of spending during the 9-month period, up 7% from 2010. However, the bulk of the gain came early in the year, and from April through September automotive budgets grew just 1%.
Most forms of TV displayed spending gains in Q3 2011: expenditures on cable networks rose 6.5% during Q3, while year-to-date outlays grew 9.9%. Network TV registered its first quarterly gain of the year, as Q3 expenditures inched up 0.2%, although year-to-date expenditures remained down 5.7%. Kantar insight suggests higher budgets from movie studios and consumer package goods marketers accounted for the Q3 increase for network TV, while the year-to-date decline can be attributed to the loss of marquee college football and basketball programming to cable networks in Q1.
Meanwhile, ad spending in Spanish Language Television jumped 18% during Q3 2011 compared to Q3 2010, while syndication TV was also up 14.8% for the period. The only TV segment to lose ground was spot TV, where spending fell 5.7% year-over-year in Q3, and was also down 2.7% for the year-to-date.
Overall, compared to the corresponding periods in 2010, TV ad spending grew 2.3% for the year-to-date, and 3.2% for Q3.
The top 10 TV advertisers, led by Procter & Gamble, spent $7.3 billion in the medium during the first 9 months of 2011, up 0.1% from a year ago. The group accounted for 15% of total TV expenditures by all advertisers.
Outdoor spending slowed during the third quarter, but still registered gains of 3.2% for Q3 and 8.6% for the first 9 months. The pace of spending in radio media was more muted, but remained steady, up a modest 1.1% in Q3 and 1.2% for the year-to-date, driven by over 2% growth in local radio and network radio advertising.
Magazine media spending declined 1.2% for Q3, but rose 1.5% for the year-to-date. The top 10 magazine advertisers invested $2.7 billion in the medium for the year-to-date, a decrease of 2.8%. As a proportion of total magazine ad spending by all advertisers, the top 10 accounted for 17.1%.
Although the internet sector posted a Q3 2011 drop of 2.9% compared to last year, overall expenditures for the year-to-date were up 2.8% compared to a year earlier. Display ad expenditures soared 15.8% in Q3 and 10.1% for the year-to-date, offsetting paid search drops of 14.4% and 2.1%, respectively. The 10 largest internet advertisers, led by General Motors, invested a total of $1.8 billion in paid search and display campaigns, up 11.1% versus a year ago, and accounting for 10.8% share of all internet ad dollars.
The newspaper sector posted the worst figures of all media, experiencing a 3.7% decline in spending in Q3 2011 compared to Q3 2010, and 3.8% decrease for the year-to-date. Local newspapers, despite robust budgets from local auto dealers and an uptick in financial advertising, saw a 4.4% spending decline in Q3, and were down 3.9% year-to-date.
Meanwhile, according to December figures from eMarketer, although newspapers accounted for 15% of all US ad spending in 2011, they held just a 4% share of adults’ daily media time. Magazines also held a much larger share of ad spending than daily media time, at 9.7% and 2.8%, respectively.
By contrast, eMarketer estimated that mobile accounted for 10.1% share of adults’ media time each day, but less than 1% of ad dollars. TV (42.5% vs. 42.2%), internet (25.9% vs. 21.9%), and radio (14.6% vs. 10.9%) all also displayed a higher share of adults’ daily time than share of US ad spending.
eMarketer notes that time spent with the internet excludes internet access via mobile, but online ad spending includes mobile internet ad spending. As such, the total of the ad spending share for all the media adds up to more than 100%.
From Advertising Age - Full story here
The "Good to Know" campaign is an important branding effort for Google as internet users' concerns about how their personal data is used continue to mount. In the ads, Google seeks to tell consumers that there's a value exchange and that they reap benefits, such as more-personalized search results, in return for the company's knowledge of their search history
Google has become a high-profile marketer, launching three TV ads featuring the Muppets and NBA announcer Bill Walton in late December to promote Google+ and its group-chat functionality, "Hangouts." It's a far cry from the company's attitude nearly two years ago, when former CEO Eric Schmidt tweeted, "Hell has indeed frozen over" after Google bought its first-ever TV ad during the Super Bowl.
The company invested significantly more in advertising in 2011 than it ever had before. It had spent $103 million on TV, print and online display ads as of August, compared to $53 million for all of 2010, according to Kantar Media.
The "Good to Know" campaign has already run in the U.K. and Germany.
Report from MarketingCharts.com shows spending and consumption down year over year in print from 2010 to 2011.
From MarketingCharts.com. Full story here
Total US advertising expenditures in the first 9 months of 2011 increased 1.5% from a year ago, finishing the period at $104.7 billion, according to December 2011 data from Kantar Media. Spending growth slowed during Q3, up 0.4% compared to last year, after rising 4.1% in Q1 and 2.8% in Q2. Spending among the 10 largest advertisers in the first 9 months of 2011 was $11.8 billion, representing a 1.4% decline compared to a year ago. Procter & Gamble maintained its top-ranked position with spending of $2.1 billion through September, down 5.6% compared to last year, although its Q3 spending was flat compared to the previous year.
Meanwhile, expenditures for the 10 largest categories grew 3.1% in the first 9 months of 2011, to $59.5 billion. For Q3, the aggregate increase was 1.8%, although quarterly growth rates for 7 of the 10 categories trailed their year-to-date average. Automotive was the top category with $9.9 billion of spending during the 9-month period, up 7% from 2010. However, the bulk of the gain came early in the year, and from April through September automotive budgets have grown just 1%.
Most forms of TV displayed spending gains in Q3: expenditures on cable networks rose 6.5% during Q3, while year-to-date outlays grew 9.9%. Network TV registered its first quarterly gain of the year, as Q3 expenditures inched up 0.2%, although year-to-date expenditures remain down 5.7%. Kantar insight suggests higher budgets from movie studios and consumer package goods marketers accounted for the Q3 increase for network TV, while the year-to-date decline can be attributed to the loss of marquee college football and basketball programming to cable networks in Q1.
Meanwhile, ad spending in Spanish Language Television jumped 18% during Q3 2011 compared to Q3 2010, while syndication TV was also up 14.8% for the period. The only TV segment to lose ground was spot TV, where spending fell 5.7% year-over-year in Q3, and was also down 2.7% for the year-to-date.
Overall, compared to the corresponding periods in 2010, TV ad spending grew 2.3% for the year-to-date, and 3.2% for Q3.
The top 10 TV advertisers, led by Procter & Gamble, spent $7.3 billion in the medium during the first 9 months of 2011, up 0.1% from a year ago. The group accounted for 15% of total TV expenditures by all advertisers.
Outdoor spending slowed during the third quarter, but still registered gains of 3.2% for Q3 and 8.6% for the first 9 months. The pace of spending in radio media was more muted, but remained steady, up a modest 1.1% in Q3 and 1.2% for the year-to-date, driven by over 2% growth in local radio and network radio advertising.
Magazine media spending declined 1.2% for Q3, but rose 1.5% for the year-to-date. The top 10 magazine advertisers invested $2.7 billion in the medium for the year-to-date, a decrease of 2.8%. As a proportion of total magazine ad spending by all advertisers, the top 10 accounted for 17.1%.
Although the internet sector posted a Q3 drop of 2.9% compared to last year, overall expenditures for the year-to-date are up 2.8% compared to a year earlier. Display ad expenditures soared 15.8% in Q3 and 10.1% for the year-to-date, offsetting paid search drops of 14.4% and 2.1%, respectively. The 10 largest internet advertisers, led by General Motors, invested a total of $1.8 billion in paid search and display campaigns, up 11.1% versus a year ago, and accounting for 10.8% share of all internet ad dollars.
The newspaper sector posted the worst figures of all media, experiencing a 3.7% decline in spending in Q3 2011 compared to Q3 2010, and 3.8% decrease for the year-to-date. Local newspapers, despite robust budgets from local auto dealers and an uptick in financial advertising, saw a 4.4% spending decline in Q3, and were down 3.9% year-to-date.
Meanwhile, according to December figures from eMarketer, although newspapers account for 15% of all US ad spending in 2011,
they hold just a 4% share of adults’ daily media time. Magazines also
hold a much larger share of ad spending than daily media time, at 9.7%
and 2.8%, respectively.
By contrast, eMarketer estimates that mobile accounts for 10.1% share of adults’ media time each day, but less than 1% of ad dollars. TV (42.5% vs. 42.2%), internet (25.9% vs. 21.9%), and radio (14.6% vs. 10.9%) all also display a higher share of adults’ daily time than share of US ad spending.
eMarketer notes that time spent with the internet excludes internet access via mobile, but online ad spending includes mobile internet ad spending. As such, the total of the ad spending share for all the media adds up to more than 100%.
Another example of a media auction that ran into trouble:
From the Indianapolis Star. Full story here
A novel attempt to auction prime advertising space on Downtown Indianapolis buildings for the Super Bowl failed to attract a single bid.
The auction, which closed Friday night, included about 50 Downtown buildings, all willing to be wrapped in Super Bowl-related advertising for a fee. Plans called for bids to reach as high $100,000 for the right to hang banners.
But no one bit -- at least not until the auction closed.
One media group has placed a hold on 11 buildings, said Chris Price, a partner with Mattison Corp. The company orchestrated the website, www.biggamewraps.com, that hosted the auction. Until the contract is final, he declined to identify the company.
The idea was that advertisers themselves would bid as well as media companies.
"It didn't work out that way," Price said. "Maybe the auction itself was a mistake, maybe having a set price might have been the way to go."
While Price said that to the best of his knowledge other cities haven't turned to auctions for advertising, wrapping buildings -- ala the artist Christo -- has worked.
The 11 buildings that have a sale pending are located either in the Super Bowl Village area or close to Monument Circle. Those include the CSX and PNC Building as well, at 31 E. Georgia St. and 115 W. Washington St., as well as space at the Harness Factory, 30 E. Georgia St.
There's still time in the next few weeks for more advertisers to secure space on buildings. Price said his website will continue marketing the space for any interested advertiser.
At least 60 percent of each banner must promote the Super Bowl or the National Football League, he said.
"It adds to the spectacle," Price said. "It's almost like a giant decoration for the big event."
Interesting story from AdAge
And you can blame some of that decline on convenience stores' decisions to stop carrying skin mags. But more on that in a moment.
Although subscriptions comprise the vast majority of most magazines' circulation, newsstand sales are crucial for the impulse purchases that can lead to subscription commitments.
And single-copy sales have been experiencing a long swoon, falling 5.6% in the first half of 2010 from the first half a year earlier, 9.1% in the second half of 2009, 12.4% in the previous six months and 11.1% and 6.3% in the halves before that, according to the Audit Bureau of Circulations.
After the 'men's sophisticates' go...
There are plenty of reasons for the sales declines, but a falling number
of retail outlets for magazines doesn't help. Convenience stores that
sell magazines have declined significantly, partly because many decided
to ditch magazines like Playboy, Hustler and Penthouse, according to Gil
Brechtel, president-CEO of MagNet.
"A lot of convenience stores no longer sell the 'men's sophisticates,'" Mr. Brechtel said. "It's really when they were popular or when they were selling men's sophisticates, their volume was enough that wholesalers could go to them and make a profit. When you eliminate men's sophisticates, probably 70% to 80% of their volume was removed and made everything less profitable for wholesalers."
Even as specialty retailers such as Home Depot and Linens 'n Things have increasingly stocked magazines, meanwhile, big box stores such as Walmart have been driving smaller superettes and local drug stores out of business.
Smaller volume at Linens 'n Things
Walmart has been giving less prominence to magazines in its own stores,
moving the big magazine racks to the back, Mr. Brechtel said. And Linens
'n Things just doesn't generate the same newsstand sales as a
traditional store with a wide selection of titles.
So are the declines impossible to slow or stop?
"The other factor has been the economy," Mr. Brechtel said. "When the economy improves we will see a steadying of single-copy sales. I would think that there will probably be a continual decline, but perhaps not as quick as previously."
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