US ad spending jumps 5.1% in Q1: Kantar Media

Share this content:

Total US advertising expenditures increased 5.1% year-over-year in the first quarter of 2010, totaling $31.3 billion in the period, according to marketing research firm Kantar Media.

However, the figures were mixed for the ad economy at large. Though ad spending for TV and the Internet saw increases of 10.5% and 5%, respectively, newspaper ad spending dropped 3.7% and magazine spending fell 3.2%.

Jon Swallen, SVP of research at Kantar Media, said the turnaround in the economy was a key factor in the ad spending upswing.

“I think marketers pre-set their ad spending in anticipation of stronger consumer activity, and that has begun to emerge in the first quarter,” he explained. “The sustainability of that stronger consumer activity, and by that extension, advertising recovery, is going to depend on how the general economy performs.”

Procter & Gamble held its position as the largest advertiser in the US with a 17.7% year-over-year increase in ad spend to $772.6 million. AT&T was runner-up with total advertising expenditures of $576.4 million, up 26.7% from a year ago.

Surprisingly, the troubled automotive sector preformed well. Its total ad spending jumped to more than $3.02 billion, a 18.6% increase. Though traditionally one of the four top advertising categories, the automotive sector has been in crisis mode since the 2008 Wall Street meltdown.

“The increase [in automotive ad spending] began in November 2009 and continued very strongly into the first quarter of the year, in tandem with new vehicle sales,” said Swallen. “Automakers have significantly boosted their advertising budgets with a prospect of further increases over the rest of the year as Chrysler comes back into the market with new models and new advertising support.”

Financial services advertising also surged, increasing 10.6% year-over-year to $2.27 billion. However, this surge in spending may be deceptive, according to Swallen.

“Retail bank advertising is still somewhat soft, but credit card advertising has been very robust,” he added. “The financial services sector has been emerging but at an uneven pace.”

Loading links....
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here