Though the path toward recovery has been slower in the US than in most regional ad markets, the trend is positive: US advertisers spent an estimated $54 billion during the first half of 2010, up 3.8% from the same period a year earlier, driven by discretionary ad spending categories such as automotive and department stores, according to data from The Nielsen Company.
Growth in the US ad market, which faced six straight quarters of declines in spending, reflects a modest improvement in consumer confidence in the first half of the year, as advertisers sought to highlight value deals and increase promotions in hopes of spurring consumer spending.
US Ad Spend by Sector: Automotive Sector Leads
The top 10 product categories grew 3.4% on average in the first half of 2010 over 1H09 levels. Among them, automotive registered the highest gain (26.9%), followed by auto insurance (22.6%). All other categories, except department stores (4.9%) and restaurants (2.5%) declined in 1H10.
Auto advertising was driven largely by increased spending by General Motors, up 73% over 1H09. Ford and Toyota also grew their ad spending 15% and 22%, respectively. An 82% increase for UAW Health Care Trust contributed to first-half growth in the auto insurance category.
US Ad Spend by Media Type: Television Is Still King
US TV (network, cable, syndication, spot, Spanish Language network and Spanish Language cable) continued to dominate, accounting for $33.8 billion in advertising in 1H10, up 6% over 1H09 levels. Spanish language network TV and Cable TV registered the biggest gains, up 24% and 13%, respectively, over 1H09 levels.
Print media overall (national and local magazines, newspapers, Sunday supplements and B2B) was flat, however, national Sunday supplements grew 20.5% over 1H09 levels. National magazines were also up 7.4%. Alternatively, local Sunday supplements and national newspapers declined 7.9% and 6.9%, respectively.
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Global Ad Spend Rebounds 12.8% in 1H10
Global ad spending reached $238 billion in the first six months of 2010, up 12.8% over the same period a year earlier—driven by booming emerging markets and a return to double-digit ad spending in automotive, durables, fast moving consumer goods (FMCG), financial services, and telecom.
In the first half of 2010, Latin America (44.5%) and Middle East/Africa (23.8%) recorded the biggest year-on-year surges with highest per country increases from Egypt (36.4%), Brazil (50.2%), and Mexico (40%).
Asia-Pacific, which accounts for 38% of the global ad market, enjoyed robust growth in 1H10 (12.1%), with the majority of Asian markets posting double-digit growth over 1H09 levels.
Across ad sectors, notable regional ad market performance in 1H10 included the following:
- Clothing and accessories in Europe: 14.9%
- Durables in Asia-Pacific: 29.7%
- Financial services in Latin America: 73.9%
- Telecommunications in Middle East/Africa: 38.7%
Nearly one in every 10 ad dollars spent on advertising ($.95) worldwide was generated by the healthcare sector in 1H10—although this leading ad category went into slight decline from January to June in 2010 as a result of decreased advertising in Asia-Pacific and North America. In addition, $.89 in every 10 ad dollars was spent by cosmetics & toiletries, the second-largest ad sector.
