Tuesday, September 11, 2012

Kantar Media report shows modest ad growth overall, but continued bad news for newspapers, magazines, and even Internet; TV, radio & outdoor ads up slightly

For many media companies, even modest growth is better news than what they've experienced in the last few years. Kantar Media has released its newest report on ad expenditures and its shows that ad spending in the second quarter of the year was up less than one percent (0.9 percent), while for the year we are running just below 2 percent in growth (1.9 percent).

"Ad spending growth sputtered during the second quarter and was unable to sustain its early year momentum,” Jon Swallen, Chief Research Officer at Kantar Media North America said in the company's statement. “The advertising market is mirroring the tepid, slow growth performance of the general economy. Third quarter results will get a short-term boost from the Summer Olympics and political advertising but sustained long-term improvement will probably be linked to the health of consumer spending on the goods and services that marketers provide.”

Television, radio and outdoor advertising are the strongest so far this year, do doubt due to election advertising. Television ad spending was up 4.4 percent for the quater, 6 percent so far in the first half of the year. Radio and outdoor advertising enjoyed smaller increases.

Newspapers and magazines continue to see tough times. While local papers saw their ad spending decline by a modest 1.9 percent, national papers saw a disastrous 10.7 percent decline in advertising spending. Even Spanish newspapers, which have not seen the same level of losses, saw ad spending go into the red 2.5 percent in the quarter (though ad spending remains up one percent for the year).

Magazines, both consumer and B2B saw ad spending fall 2.6 percent in Q2, and although ad spending is only down 1.6 percent for the year in B2B, it should be remembered that losses have been occurring year after year, compounding the misery for many publishers.

Possibly the most depressing numbers in the report, however, involved Internet display advertising. Kantar Media is reporting that digital display ads were down 5.4 percent in Q2, and for the year the category is down 3.9 percent.