Advertisers spent an estimated $117 billion on US media in 2009, down 9% from the previous year—and continuing a trend of six consecutive quarters of negative growth in the ad industry, according to preliminary figures from Nielsen.
However, fourth-quarter ad spending was down just 2% year over year, softening the full-year decline and providing signs of encouragement that the downward trend may be slowing, Nielsen reported (pdf).
Declines in ad spending were driven by category giants, including automotive and wireless telephone services. A bright spot amid the dismal performance: Spending by Web-based advertisers climbed 32%, to $1.1 billion in 2009, paced by dramatic spending increases by Hulu and Bing.
2009 Ad Spend by Product Category (Top 10)
Automotive-related advertising, including factory and dealer association spending, was down 23.4% for the year, to $8.0 billion from $10.5 billion in 2008. Local dealer ads fell 23.0%, to $3.2 billion, from $4.2 billion in the previous year.
Ad spend by wireless telephone services, the fifth-largest product category, fell 8.2% for the year: to $3.4 billion, from $3.7 billion in 2008. Furniture store ad spending fell 7.4%, to $1.4 billion, from $1.5 billion in the previous year.
Among the top 10, three product categories recorded slight year-over-year ad-spending increases in 2009:
- Department stores (No. 4) up 2.8%, from $3.9 billion to $4.1 billion.
- Pharmaceutical products (No. 2) up 1.8%, from $4.4 billion to $4.5 billion.
- Quick service restaurants (No. 3) up 1.3%, from $4.01 billion to $4.07 billion.
Looking for great digital marketing data? MarketingProfs reviewed more than 200 research sources and selected 64 of the best to create the Digital Marketing Factbook a 144-page compilation of data and 110 charts, covering email marketing, search engine marketing, and social media. Also check out The State of Social Media Marketing, a 240-page original research report from MarketingProfs.
2009 Ad Spend by Media Category: Cable TV Stays Strong
Across media categories, cable television was the clear winner in 2009: Spanish-language cable TV advertising increased 32.2% during the year, followed by Cable TV, up 14.8%.
Free standing insert (FSI) coupons—found in printed newspapers and magazines—increased 11.5% during the year, while Internet ad spending edged up 0.1%.
Amid dramatic losses for the year—recorded in 15 of the 19 media sectors tracked—the biggest loser was local Sunday supplements, down 45%.
B2B advertising also suffered losses, falling 32.7% during the year.
