“Advertising growth eased in 2013 without the stimuli of Olympic and political spending. However, the market still registered a gain for the fourth consecutive year,” said Jon Swallen, Chief Research Officer at Kantar Media North America. “Although the macro theme of ad dollars moving to digital media still generates much discussion, another significant but less recognized trend has taken hold. The ad market is currently being carried by the Top 1000 advertisers who, as a group, are steadily spending more while the long-tail of small-sized marketers is sharply cutting back.”
Measured Ad Spending By Media:
- The Television sector benefitted in 2013 from higher ad expenditures on sports programming while also taking a hit from the predictable every-other-year decline in spending associated with political and the Olympics. These competing forces shaped results for individual TV types.
- Cable TV expenditures rose 7.3 percent in 2013 and were led by double digit growth in spending from the automotive, consumer package goods, restaurant and telecom categories. Cable was also helped by a 1.3 percent increase in the amount of paid ad time. Since emerging from the ad recession in 2010, the average cable network has raised its commercial load by nine percent.
- Full year Network TV expenditures dropped 3.4 percent. Gains from live sports programming - most notably the NFL and post-season basketball and baseball - were erased by the absence of an Olympics event. For Spot TV, 2013 spending fell 8.1 percent versus the prior year when a torrent of political money boosted the market. The auto category remained a bright spot for spot TV sellers as local dealers continued to raise their media investments amidst a strong sales climate for new vehicles.
- Spanish language TV ad spending was up 2.9 percent in 2013, paced by higher sell-out levels at over-the-air networks. Syndication expenditures increased 0.5 percent.
- Spending for online display, which currently does not include video or mobile ad formats, accelerated in the second half of 2013 and finished the full year 15.7 percent higher versus the prior period. Increased investments from financial service, telecom and travel advertisers contributed significantly to the results.
- Outdoor posted a 4.4 percent gain in ad expenditures for 2013. A prime contributor to this result was the continuing expansion of digital signage, which gives advertisers more flexibility when purchasing space and allows operators to get a higher price. Over the past four years digital outdoor spending has grown five times faster than the overall medium.
- Expenditures in Consumer Magazines as calculated by rate card prices rose 2.6 percent but advertising pages were down 1.9 percent. Higher outlays from marketers of personal care products, apparel and prescription drugs were offset by reductions in the travel and direct response categories. Sunday Magazines saw their full year spending decline 2.6 percent but comparisons were affected by the presence of one extra Sunday in 2012 and this accounts for most of the difference.
- Local Newspaper ad expenditures fell 3.8 percent in 2013 and National Newspapers dropped 3.6 percent. Each experienced broadly lower demand from Financial Service, Retail and Motion Picture marketers. Losses in spending were consistent with reductions in the amount of space sold. Spanish Language Newspapers fared much better with a gain of 1.9 percent for the year.
- Radio media tumbled in 2013. Local Radio fell 4.1 percent and National Spot Radio declined 3.3 percent, primarily from cyclical reductions in political spending. Network Radio expenditures dropped 15.9 percent, largely due to a reduction in the number of monitored networks.
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