“The rally in ad spending that has emerged from last year’s collapse continued at a steady pace through the second quarter, even as softening economic data on retail sales, spending and employment began to raise concerns about the outlook for consumer activity,” said Jon Swallen, SVP Research at Kantar Media. “Early figures from the third quarter indicate the advertising expansion is still maintaining its momentum and that is an encouraging sign for the industry.”

Measured Ad Spending By Media

Television media led the first half rebound. Spot TV expenditures jumped 25.1 percent, fueled by robust demand from auto and retail marketers and a cyclical upturn in political advertising. Spanish Language TV spending rose 14.6 percent, with gains driven by the World Cup event in June. Cable TV (+ 8.8 percent) and Network TV (+7.2 percent) benefited from selling more ad time and increased spending across a broad range of retail and consumer package goods categories.

Free Standing Inserts (FSIs) posted the second largest growth rate among the major media sectors. Expenditures rose 7.6 percent as CPG marketers aggressively targeted value-conscious consumers with couponing programs.

Within the Radio sector, results were divergent. Spending in National Spot Radio increased 16.8 percent while Local Radio was up 4.2 percent as telecom and financial service marketers shifted budgets into these segments. Network Radio registered a small decline of -0.4 percent. All radio types saw growth rates ease slightly during the second quarter.

Consumer Magazine expenditures bottomed out in March and the ensuing rebound in page counts helped push half-year spending to a 1.5 percent increase. Sunday Magazines (+13.1 percent) continued to reap additional money from prescription drug makers and home improvement retailers.

National Newspaper spending jumped 7.1 percent, primarily from gains at the Wall Street Journal. However, Local Newspaper spending was down 4.6 percent compared to last year and has now suffered declines for 19 consecutive quarters.

Percent Change in Measured Ad Spending1

MEDIA SECTOR

Media Type
(Sectors and types listed in rank order of H1 spending)
Jan-June
2010 vs. 2009
TELEVISION MEDIA        10.0%
– Network TV         7.2%
– Cable TV2         8.8%
– Spot TV3         25.1%
– Spanish Language TV4         14.6%
– Syndication – National         -11.7%
MAGAZINE MEDIA5        1.6%
– Consumer Magazines         1.5%
– B-to-B Magazines         -4.2%
– Sunday Magazines         13.1%
– Local Magazines         -3.5%
– Spanish Language Magazines         4.8%
NEWSPAPER MEDIA6        -3.0%
– Local Newspapers         -4.6%
– National Newspapers         7.1%
– Spanish Language Newspapers         2.8%
INTERNET (display ads only)        5.3%
RADIO MEDIA        6.3%
– Local Radio7         4.2%
– National Spot Radio         16.8%
– Network Radio         -0.4%
OUTDOOR        2.8%
FSIs8        7.6%
TOTAL        5.7%
Source: Kantar Media

1. Figures are based on the Kantar Media Stradegy™ multimedia ad expenditure database across all measured media, including: Network TV (6 networks); Spot TV (125 DMAs); Cable TV (71 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (226 publications);,Sunday Magazines (7 publications); Local Magazines (27 publications); Hispanic Magazines (16 publications); Business-to-Business Magazines (313 publications); Local Newspapers (147 publications); National Newspapers (3 publications); Hispanic Newspapers (49 publications); Network Radio (5 networks); Spot Radio; Local Radio (32 markets); Internet; and Outdoor. Figures do not include public service announcement (PSA) data.

2. Cable TV figures do not include Hispanic cable networks.

3. Spot TV figures do not include Hispanic stations.

4. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable network and 71 local Hispanic TV stations.

5. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications.

6. Newspaper media figures reflect print editions of publications.

7. Local Radio includes expenditures for 32 markets in the U.S.

8. FSI data represents distribution costs only.

Measured Ad Spending by Advertiser

Expenditures for the ten largest advertisers increased 11.5 percent to $8.35 billion in the first six months of 2010. Among the Top 100 advertisers, a diversified group representing nearly one-half of the measured ad economy, spending was up 9.7 percent to $29.32 billion. The long-tail of small advertisers – defined as those outside the Top 1000 and a segment which accounts for more than one-fifth of all ad expenditures – lagged behind with just a 1.4 percent gain in their aggregate media investments. The skewed distribution illustrates the dependency of the current advertising recovery on large advertisers.

Procter & Gamble easily held onto its position as the largest advertiser and spent $1,501.2 million, a 31.1 percent increase versus a year ago. The company boosted marketing support for nearly all of its largest brands.

AT&T took the second spot in the rankings with expenditures rising 14.1 percent to $1,108.2 million. Much of the increase was due to a large TV ad buy in February’s Winter Olympics, while the second quarter was characterized by significant advertising reductions for core wireless products. Rival Verizon Communications slashed its half-year budgets by 12.3 percent, to $1,020.2 million.

The Top 10 included three auto manufacturers, the most from that sector in more than three years. General Motors had the largest growth rate as the company lifted spending 45.6 percent, to $1,043.0 million. Toyota Motor, seeking to rehabilitate its image after recalling millions of vehicles for safety hazards, raised its ad budgets by 23.3 percent, to $527.7 million. Ford Motor, which has recently been gaining market share, accelerated its expenditures by a comparatively modest 12.2 percent, to $524.1 million.

Top Ten Advertisers: January-June 20101

Rank          Company
Jan – Jun 2010
($Millions)

Jan – Jun 2009
($Millions)
% Change
1         Procter & Gamble Co         $1,501.2         $1,145.2         31.1%
2         AT&T Inc         $1,108.2         $970.8         14.1%
3         General Motors Corp         $1,043.0         $716.3         45.6%
4         Verizon Communications Inc         $1,020.2         $1,163.2         -12.3%
5         Johnson & Johnson         $708.9         $798.8         -11.2%
6         News Corp         $700.9         $662.5         5.8%
7         Pfizer Inc         $649.4         $558.5         16.3%
8         Time Warner Inc         $571.1         $579.7         -1.5%
9         Toyota Motor Corp         $527.7         $427.9         23.3%
10         Ford Motor Co         $524.1         $467.0         12.2%
TOTAL2        $8,354.6        $7,489.8        11.5%
Source: Kantar Media

1. Figures do not include FSI, House Ads or PSA activity.

2. The sum of the individual companies may differ from the Total shown due to rounding.

Measured Ad Spending by Category

Expenditures for the ten largest advertising categories rose 7.3 percent in the first six months of 2010 and totaled $36.04 billion.

Automotive was the premier category among the Top Ten on both dollar volume and growth rate as spending surged 23.4 percent to $6,062.7 million amidst an improved environment for vehicle sales. Within the category, manufacturers and dealers had comparable rates of increase.

Telecom was the second largest category with half-year expenditures up 2.8 percent to $4,383.6 million. However, spending rates fell during the second quarter as leading wireless and satellite TV marketers pulled back.

Financial Services advertising jumped 11.3 percent, to $3,818.0 million. Results were helped by vigorous competition among credit card issuers and a marketing revival for consumer loan products. These offset lingering sluggishness in the retail banking segment.

Packaged goods categories continued to see higher advertising support as marketers adapted their strategies to evolving changes in consumer shopping behavior. Expenditures for Food & Candy were up 9.5 percent to $3,299.4 million, and spending for Personal Care Products increased 11.8 percent to $2,962.3 million.

Top Ten Advertising Categories: January-June 20101

Rank          Category
Jan – Jun 2010
($Millions)

Jan – Jun 2009
($Millions)
% Change
1         Automotive         $6,062.7         $4,913.4         23.4%

(Manufacturers)
$3,907.4        $3,134.1        24.7%

(Dealers)
$2,155.3        $1,779.3        21.1%
2         Telecom         $4,383.6         $4,266.3         2.8%
3         Local Services         $3,926.2         $3,719.7         5.5%
4         Financial Services         $3,818.0         $3,430.4         11.3%
5         Miscellaneous Retail2         $3,385.2         $3,092.6         9.5%
6         Food & Candy         $3,299.4         $3,011.8         9.5%
7         Direct Response         $3,108.5         $3,245.6         -4.2%
8         Personal Care Pdts         $2,962.3         $2,650.6         11.8%
9         Restaurants         $2,889.6         $2,863.0         0.9%
10         Travel & Tourism         $2,201.0         $2,388.7         -7.9%
TOTAL3        $36,036.5        $33,582.3        7.3%
Source: Kantar Media

1. Figures do not include FSI or PSA activity.

2. Miscellaneous Retail does not include these retail segments: Department Stores, Home Furnishing/Building Supply Stores.

3. The sum of the individual categories may differ from the total due to rounding.

Branded Entertainment

Kantar Media continuously monitors Branded Entertainment within network prime time and late night programming. The tracking identifies Brand Appearances and measures their duration and attributes. Given the short length of many Brand Appearances, duration is a more relevant metric than a count of occurrences for quantifying and comparing the gross amount of brand activity that viewers are potentially exposed to in the program versus the commercial breaks.

In the second quarter of 2010, an average hour of monitored prime time network programming contained nine minutes, thirty one seconds (9:31) of in-show Brand Appearances and 14:19 of network commercial messages. The combined total of 23:50 of marketing content represents 40 percent of a prime-time hour.

Unscripted reality programming had an average of 16:39 per hour of Brand Appearances as compared to just 5:16 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows had an average of 13:55 per hour. The combined load of Brand Appearances and network ad messages in these late night shows was 29:38 per hour, or 49 percent of total content time.

Brand Appearances vs. Advertising: Q2 2010
(minutes:seconds per hour)

Brand Appearances

Network Ad Messages1
TOTAL
PRIME TIME NETWORK         9:31         14:19         23:50
Unscripted Programs        16:39        14:47        31:26
Scripted Programs        5:16        14:03        19:19

LATE NITE NETWORK
(Kimmel, O’Brien, Letterman)
13:55         15:43         29:38
Source: Kantar Media

1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded.

The top five brands ranked by total amount of Brand Appearance time were Coca-Cola, 24 Hour Fitness Center, Yamaha Music Equipment, Chef Revival, and Starter.

About Kantar Media

Established in more than 50 countries, Kantar Media helps clients master the world’s multimedia momentum through analysis of print, radio, TV, internet, cinema, mobile, social media, and outdoor worldwide. Kantar Media offers a full range of media insights and audience measurement services through its global business sectors – Intelligence, Audiences, TGI and Custom. Kantar Media companies also include Compete, Cymfony and SRDS. Drawing upon the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and delivers insight to more than 22,000 customers worldwide.

PLAINFIELD, Ill. – Infutor Data Solutions, Inc., the market leader in providing high quality database products, announced the general availability of the Yellow Pages Data Delivery (YPDD) service. The new service will enable yellow page publishers and certified marketing representatives to analyze customers’ and competitive advertising expenditures across different yellow page publishers and different regions. YPDD generates customized reports that sales agents can use to perform market-level client and competitor analysis to revise and optimize their client’s advertising program.

YPDD is a superior online application built from current and historical advertising data compiled from 67 million records in 5,400 directories. The YPDD database is updated monthly and provides critical advertising information like ad sizes, UDACs, rates and page numbers of the advertisement layout. Customers have the flexibility to create market-level advertising analytic reports from the YPDD web browser interface, or download the advertising data into their CRM system to create custom reports.

“YPDD was recently deployed to a national yellow page publisher to identify gaps in their customers’ advertising plans,” said Gary Walter, President & CEO of Infutor. “Printed directories continue to be the most common reference for B2C purchase decisions. YPDD is a superior research tool that will drive more advertising sales for publishers.”

About Infutor Data Solutions, Inc.

Infutor Data Solutions, Inc. (http://www.infutor.com) is a market leader in providing high quality database products designed for distribution by major information resellers. Infutor’s core products include consumer, business, telephone and vehicle databases driving critical direct marketing, fraud and identity. Infutor maintains its headquarters in Plainfield, IL, and technical development centers in Cedar Grove, TN and San Rafael de Escazú, Costa Rica.

“With the economy turning from recession towards growth, marketers appear to be more confident about a pickup in consumer activity and have increased ad budgets to support their brands,” said Jon Swallen, SVP Research at Kantar Media. “While the rising tide has thus far benefited some media sectors more than others, Q1 spending hikes were broadly distributed across advertisers and categories and that’s an encouraging signal for the market going forward.”

Measured Ad Spending By Media

Of the nineteen media types tracked by Kantar Media, thirteen experienced a spending increase in the first quarter. At the forefront, Spot TV surged 22.0 percent on a torrent of additional money from the automotive, retail, financial service and political categories. Despite this growth, current spending volume in Spot TV has only recovered to a level last seen in 1997.

Other television media types also performed strongly. Network TV expenditures received a boost from the Winter Olympics and finished the period up 11.6 percent. Cable TV (+8.2 percent) and Spanish Language TV (+7.2 percent) each benefitted from selling more ad time and strengthened demand among across a broad range of package goods and retail advertisers.

After a three year slump, radio ad expenditures finally had a turnaround. National Spot Radio advanced 19.0 percent and was paced by higher spending from the telecom, financial service and auto categories. Local Radio (+4.6 percent) and Network Radio (+3.0 percent) were also up.

Print media, on the whole, continued to lag the overall ad market. Consumer Magazine spending fell 3.9 percent from a year ago while Local Newspapers dropped 5.6 percent. There was improvement in some narrow segments as Sunday Magazine expenditures jumped 13.7 percent and National Newspapers increased 9.1 percent, primarily from gains at the Wall Street Journal.

Percent Change in Measured Ad Spending1

MEDIA SECTOR — Media Type
(Sectors and types listed in rank order of spending)
Jan – Mar 2010 vs. 2009
TELEVISION MEDIA          10.5%
– Network TV           11.6%
– Cable TV2           8.2%
– Spot TV3           22.0%
– Spanish Language TV4           7.2%
– Syndication – National           -13.2%
MAGAZINE MEDIA5          -3.2%
– Consumer Magazines           -3.9%
– B-to-B Magazines           -8.4%
– Sunday Magazines           13.7%
– Local Magazines           -7.1%
– Spanish Language Magazines           1.5%
NEWSPAPER MEDIA6          -3.7%
– Local Newspapers           -5.6%
– National Newspapers           9.1%
– Spanish Language Newspapers           4.5%
INTERNET (display ads only)          5.0%
RADIO MEDIA          7.4%
– Local Radio7           4.6%
– National Spot Radio           19.0%
– Network Radio           3.0%
OUTDOOR          -0.4%
FSIs8          12.8%
TOTAL          5.1%
Source: Kantar Media
1. Figures are based on the Kantar Media Stradegy™ multimedia ad expenditure database across all measured media, including: Network TV (6 networks); Spot TV (125 DMAs); Cable TV (71 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (225 publications);,Sunday Magazines (7 publications); Local Magazines (26 publications); Hispanic Magazines (17 publications); Business-to-Business Magazines (351 publications); Local Newspapers (147 publications); National Newspapers (3 publications); Hispanic Newspapers (49 publications); Network Radio (5 networks); Spot Radio; Local Radio (32 markets); Internet; and Outdoor. Figures do not include public service announcement (PSA) data.
2. Cable TV figures do not include Hispanic cable networks.
3. Spot TV figures do not include Hispanic stations.
4. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable network and 71 local Hispanic TV stations.
5. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications.
6. Newspaper media figures reflect print editions of publications.
7. Local Radio includes expenditures for 32 markets in the U.S.
8. FSI data represents distribution costs only.

Measured Ad Spending by Advertiser

Expenditures for the ten largest advertisers in the first quarter jumped 10.6 percent to $4.34 billion. Among the Top 100 advertisers, a diversified group representing nearly one-half of the measured ad economy, spending was up 11.0 percent to $14.89 billion. The long-tail of small advertisers – defined as those outside the Top 1000 – were far below these growth rates and posted a 1.1 percent decline in their aggregate media investments.

Procter & Gamble kept its position as the largest advertiser with $772.6 million in spending, an increase of 17.7 percent versus a year ago. The company continued to shift budgets towards magazines and away from television.

AT&T rose to the second spot with spending of $576.4 million, up 26.7 percent, behind a large television ad buy in the Winter Olympics. Rival Verizon Communications reduced its total expenditures by 9.1 percent, to $517.2 million. Both telecom companies continued to allocate more resources to promote their TV service products as they try to win subscribers from cable and satellite operators.

Pfizer posted the highest growth rate with expenditures up 46.2 percent to $396.4 million as the company maintained aggressive marketing support for Lipitor prior to the brand going off patent in 2011. With auto industry sales picking up, General Motors accelerated its spending by 28.5 percent to $533.7 million and accounted for more than one-fourth of all ad dollars spent by auto manufacturers.

News Corp (+7.8 percent, to 366.8 million) and Time Warner (+14.7 percent, to $304.3 million) also had notable increases. At both companies the results were primarily shaped by their movie studio divisions

Top Ten Advertisers Of Q1 20101

Rank          Company
Jan – Mar 2010 ($Millions)

Jan – Mar 2009 ($Millions)
% Change
1           Procter & Gamble Co           $772.6           $656.5           17.7%
2           AT&T Inc           $576.4           $455.0           26.7%
3           General Motors Corp           $533.7           $415.5           28.5%
4           Verizon Communications Inc           $517.2           $569.1           -9.1%
5           Pfizer Inc           $396.4           $271.1           46.2%
6           News Corp           $366.8           $340.4           7.8%
7           Johnson & Johnson           $344.1           $390.3           -11.8%
8           Time Warner Inc           $304.3           $265.3           14.7%
9           Walt Disney Co           $267.6           $303.6           -11.8%
10           General Electric Co           $264.6           $261.3           1.3%
TOTAL2          $4,343.9          $3,928.0          10.6%
Source: Kantar Media
1. Figures do not include FSI, House Ads or PSA activity.
2. The sum of the individual companies may differ from the Total shown due to rounding.

Measured Ad Spending by Category

Expenditures for the ten largest advertising categories rose 7.8 percent in the first quarter and totaled $17.95 billion. All but one of the Top Ten categories was up, indicating broad participation in the ad spending recovery.

Automotive was the leading category by dollar volume and also had the highest growth rate among the Top Ten as spending soared 18.6 percent to $3,016.8 million, ending a streak of 18 consecutive quarterly declines. Manufacturers and dealerships reacted quickly to an improving sales environment by ramping up marketing efforts with TV, magazines and radio being the main beneficiaries.

Telecom was the second largest category as expenditures reached $2,276.5 million, an increase of 10.6 percent. Financial Services also experienced a revival with outlays up 10.1 percent to $2,028.7 million. Sharply higher spending from marketers of credit cards and loan products offset continued weakness within the consumer banking segment.

Packaged goods categories, where advertisers took advantage of soft ad pricing in 2009 to bolster their media weight, were undaunted by rising ad prices in the first quarter of 2010. Spending from Food & Candy was up 7.3 percent to $1,600.0 million and expenditures for Personal Care Products increased by 5.5 percent to $1,311.5 million.

Restaurant category spending also turned around with modest growth of 3.1 percent, to $1.454.5 million. A major contributor to the gain was McDonald’s television sponsorship of the Winter Olympics.

Top Ten Advertising Categories Of Q1 20101

Rank          Category
Jan – Mar 2010 ($Millions)

Jan – Mar 2009
($Millions) % Change
1           Automotive           $3,016.8           $2,544.6           18.6%

– (Manufacturers)
$1,962.1          $1,634.6          20.0%

– (Dealers)
$1,054.7          $910.0          15.9%
2           Telecom           $2,276.5           $2,059.0           10.6%
3           Financial Services           $2,028.7           $1,841.9           10.1%
4           Local Services           $1,895.0           $1,819.5           4.1%
5           Miscellaneous Retail2           $1,668.4           $1,532.2           8.9%
6           Food & Candy           $1,600.0           $1,490.6           7.3%
7           Direct Response           $1,569.3           $1,621.5           -3.2%
8           Restaurants           $1,454.5           $1,411.0           3.1%
9           Personal Care Products           $1,311.5           $1,242.6           5.5%
10           Pharmaceuticals           $1,154.2           $1,113.7           3.6%
TOTAL3          $17,974.8          $16,676.7          7.8%
Source: Kantar Media
1. Figures do not include FSI or PSA activity.
2. Miscellaneous Retail does not include these retail segments: Department Stores, Home Furnishing/Building Supply Stores.
3. The sum of the individual categories may differ from the total due to rounding.

Branded Entertainment

Kantar Media continuously monitors Branded Entertainment within network prime time and late night programming. The tracking identifies Brand Appearances and measures their duration and attributes. Given the short length of many Brand Appearances, duration is a more relevant metric than a count of occurrences for quantifying and comparing the gross amount of brand activity that viewers are potentially exposed to in the program versus the commercial breaks.

In the first quarter of 2010, an average hour of monitored prime time network programming contained ten minutes, fifty five seconds (10:55) of in-show Brand Appearances and 14:20 of network commercial messages. The combined total of 25:15 of marketing content represents 42 percent of a prime-time hour.

Unscripted reality programming had an average of 19:42 per hour of Brand Appearances as compared to just 6:59 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows had an average of 11:58 per hour. The combined load of Brand Appearances and network ad messages in these late night shows was 28:21 per hour, or 47 percent of total content time.

Brand Appearances vs. Advertising: Q4 2009
(minutes:seconds per hour)

Brand Appearances

Network Ad Messages1
TOTAL
PRIME TIME NETWORK           10:55           14:20           25:15
Unscripted Programs          19:42          14:26          34:08
Scripted Programs          6:59          14:16          21:15

LATE NITE NETWORK
(Kimmel, O’Brien, Letterman)
11:58           16:23           28:21
Source: Kantar Media
1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded.

The top five brands ranked by total amount of Brand Appearance time were Coca-Cola, Asics, 24 Hour Fitness Center, Brita Water Purifiers and Yamaha Music Equipment.

About Kantar Media

Established in more than in 50 countries, Kantar Media enables exploration of multimedia momentum through analysis of print, radio, TV, internet, social media, and outdoors worldwide. Kantar Media offers a full range of media insights and audience measurement services through its global business sectors – Intelligence, Audiences and TGI & Custom. Combining the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and delivers insights to more than 22,000 customers around the world. (www.KantarMediaNA.com).

Measured Ad Spending By Media

Internet display advertising expenditures increased 7.3 percent in 2009, aided by sharply higher spending from the telecom, factory auto and travel categories. The only other media type achieving full-year growth was Free Standing Inserts, up 3.0 percent as CPG marketers targeted value-conscious shoppers with couponing programs.

National TV media continued to outperform the overall ad market. Cable TV expenditures dropped just 1.4 percent, helped by an expanding amount of commercial time. Network TV (-7.6 percent) and Spanish Language TV (-8.9 percent) each saw year-end improvement in key categories that lifted their results. By contrast, Spot TV lagged far behind with a 23.7 percent spending drop versus a 2008 period that was bolstered by record amounts of political advertising.

Print media were hit by large reductions across a broad range of advertisers. Measured ad spending in the Newspaper sector plunged by 19.7 percent in 2009. Sunday Magazine expenditures declined 11.0 percent and Consumer Magazines were down 16.6 percent.

Percent Change in Measured Ad Spending1

MEDIA SECTOR
– Media Type
(Sectors and types listed in rank order of spending)

Full Year
2009 vs 2008

4th Quarter
2009 vs 2008

TELEVISION MEDIA          -9.5%          -2.4%
– Network TV           -7.6%           4.1%
– Cable TV2           -1.4%           2.7%
– Spot TV3           -23.7%           -13.9%
– Spanish Language TV4           -8.9%           -4.7%
– Syndication – National           -4.9%           -10.7%
MAGAZINE MEDIA5          -17.4%          -11.5%
– Consumer Magazines           -16.6%           -11.1%
– B-to-B Magazines           -26.2%           -22.7%
– Sunday Magazines           -11.0%           3.6%
– Local Magazines           -27.7%           -18.2%
– Spanish Language Magazines           -21.6%           -12.8%
NEWSPAPER MEDIA6          -19.7%          -8.9%
– Newspapers (Local)           -20.0%           -10.3%
– National Newspapers           -17.8%           0.4%
– Spanish Language Newspapers           -16.4%           -10.7%
INTERNET (display ads only)          7.3%          -2.1%
RADIO MEDIA          -20.3%          -12.5%
– Local Radio7           -20.6%           -11.7%
– National Spot Radio           -24.6%           -16.9%
– Network Radio           -8.7%           -7.9%
OUTDOOR          -13.2%          -5.4%
FSIs8          3.0%          0.0%
TOTAL9          -12.3%          -6.0%
Source: Kantar Media

1. Figures are based on the Kantar Media Stradegy™ multimedia ad expenditure database across all measured media, including: Network TV (6 networks); Spot TV (123 DMAs); Cable TV (71 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (231 publications);,Sunday Magazines (7 publications); Local Magazines (19 publications); Hispanic Magazines (14 publications); Business-to-Business Magazines (260 publications); Local Newspapers (147 publications); National Newspapers (3 publications); Hispanic Newspapers (47 publications); Network Radio (5 networks); Spot Radio; Local Radio (32 markets); Internet; and Outdoor. Figures do not include public service announcement (PSA) data.

2. Cable TV figures do not include Hispanic cable networks.

3. Spot TV figures do not include Hispanic stations.

4. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable network and 70 local Hispanic TV stations.

5. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications.

6. Newspaper media figures reflect print editions of publications.

7. Local Radio includes expenditures for 32 markets in the U.S.

8. FSI data represents distribution costs only.

Measured Ad Spending by Advertiser

The top 10 advertisers of 2009 spent a combined total of $16,556.1 million in measured media which was just 0.9 percent lower compared to their 2008 outlays. Among the top 50 marketers, a diversified group representing one-third of the measured ad economy, 2009 spending fell 5.1 percent, to $42,401.3 million. At the other end of the spectrum, small advertisers – defined as those ranked outside the Top 1,000 – trimmed their collective budgets by 20.3 percent.

Procter & Gamble was again the largest advertiser with $2,714.3 million in spending, down 15.6 percent versus a year ago. Verizon Communications held onto the second position with expenditures of $2,238.2 million, a drop of 6.9 percent.

Three of the top advertisers posted healthy double-digit gains. Wal-Mart upped its budgets by 35.4 percent behind the launch of its “Save Money, Live Better” campaign. Pfizer spending rose 32.7 percent as the company boosted marketing support for Lipitor ahead of the brand’s 2011 patent expiration. Sprint Nextel, battling for market share against its larger wireless rivals, hiked expenditures by 29.9 percent.

General Motors, despite a 30 percent drop in vehicles sold, spent 1.3 percent more on media advertising and was the only auto company in the Top Ten rankings.

Top Ten Advertisers:
Jan-Dec 2009 vs. Jan-Dec 20081

Company
Jan – Dec 2009
($Millions)

Jan – Dec 2008
($Millions)
% Change
Procter & Gamble Co     $2,714.3           $3,217.1           -15.6%
Verizon Communications Inc     $2,238.2           $2,403.4           -6.9%
General Motors Corp     $2,197.5           $2,168.3           1.3%
AT&T Inc     $1,904.4           $1,986.0           -4.1%
Pfizer Inc     $1,397.4           $1,052.8           32.7%
News Corp     $1,252.2           $1,401.3           -10.6%
Johnson & Johnson     $1,250.4           $1,368.6           -8.6%
Sprint Nextel Corp     $1,227.1           $944.8           29.9%
Time Warner Inc     $1,204.8           $1,292.9           -6.8%
Wal-Mart Stores Inc     $1,169.6           $864.1           35.4%
TOTAL2    $16,556.1          $16,699.2          -0.9%
Source: Kantar Media

1. Figures do not include FSI, House Ads or PSA activity.

2. The sum of the individual companies may differ from the Total shown due to rounding.

Measured Ad Spending by Category

Expenditures for the 10 largest advertising categories fell 10.7 percent in 2009 and totaled $70,739.4 million.

Automotive was the top category with total spending of $10,977.6 million, down 23.4 percent from the prior year. Fourth quarter figures were markedly brighter, a decline of just 0.9 percent. Dealers continued to cut budgets more severely than manufacturers in the face of withering sales. Auto category spending has now declined for 18 consecutive quarters.

Telecom was the second largest category with $8,606.8 million of measured expenditures, a gain of 1.6 percent. Results were driven by the fierce competition among wireless carriers and TV service providers.

Two other categories also finished the year with higher spending. Food & Candy was up 3.5 percent to $6,261.0 million as many leading marketers took advantage of lower ad prices and strategically increased support for key brands. Pharmaceutical expenditures rose 3.9 percent to $4,751.8 million on the strength of well-funded marketing launches for several newly approved prescription drugs.

Top Ten Advertising Categories:
Jan-Dec 2009 vs. Jan-Dec 20081

Rank          Category
Jan-Dec 2009
(Millions)

Jan-Dec 2008
(Millions)
% Change
1           Automotive           $10,977.6           $14,338.9           -23.4%

– (Manufacturers)
($7,175.5)          ($8,400.9)          (-14.6%)

– (Dealers)
($3,802.1)          ($5,938.0)          (-36.0%)
2           Telecom           $8,606.8           $8,470.1           1.6%
3           Financial Services           $7,820.1           $9,572.1           -18.3%
4           Local Services           $7,490.9           $8,628.0           -13.2%
5

Miscellaneous Retail2
$7,124.7           $8,361.7           -14.8%
6           Direct Response           $6,626.5           $7,489.9           -11.5%
7           Food & Candy           $6,261.0           $6,046.8           3.5%
8           Restaurants           $5,541.2           $5,718.7           -3.1%
9           Personal Care Products           $5,538.9           $6,026.6           -8.1%
10           Pharmaceuticals           $4,751.8           $4,575.0           3.9%
TOTAL3          $70,739.4          $79,228.0          -10.7%
Source: Kantar Media

1. Figures do not include FSI or PSA activity.

2. Miscellaneous Retail does not include these retail segments: Department Stores, Home Furnishing/Building Supply Stores.

3. The sum of the individual categories may differ from the total due to rounding.

Branded Entertainment

Kantar Media continuously monitors Branded Entertainment within network prime time and late night programming. The tracking identifies Brand Appearances and measures their duration and attributes. Given the short length of many Brand Appearances, duration is a more relevant metric than a count of occurrences for quantifying and comparing the gross amount of brand activity that viewers are potentially exposed to in the program versus the commercial breaks.

In the fourth quarter of 2009, an average hour of monitored prime time network programming contained eight minutes, thirty six seconds (8:36) of in-show Brand Appearances and 14:05 of network commercial messages. The combined total of 22:41 of marketing content represents 38 percent of a prime-time hour.

Unscripted reality programming had an average of 15:15 per hour of Brand Appearances as compared to just 5:26 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows had an average of 12:10 per hour. The combined load of Brand Appearances and network ad messages in these late night shows was 28:01 per hour, or 47 percent of total content time.

Brand Appearances vs. Advertising: Q4 2009
(minutes:seconds per hour)

Brand
Appearances

Network Ad
Messages1
TOTAL
PRIME TIME NETWORK           8:36           14:05           22:41
Unscripted Programs          15:15          14:06          29:21
Scripted Programs          5:26          14:05          19:31

LATE NITE NETWORK
(Kimmel, O’Brien, Letterman)
12:10           15:51           28:01
Source: Kantar Media

1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded.

The top five brands ranked by number of Brand Appearances were Yamaha Music Equipment, 24 Hour Fitness Center, Dell, Ford, and Bud Light.

About Kantar Media

Established in more than in 50 countries, Kantar Media enables exploration of multimedia momentum through analysis of print, radio, TV, internet, social media, and outdoors worldwide. Kantar Media offers a full range of media insights and audience measurement services through its global business sectors – Intelligence, Audiences and TGI & Custom. Combining the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and delivers insights to more than 22,000 customers around the world. (www.KantarMediaNA.com).

About Kantar

Kantar is one of the world’s largest insight, information and consultancy networks. By uniting the diverse talents of its 13 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 26,500 employees work across 95 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies.

For further information, please visit us at www.Kantar.com

Ad Spending by Media

Internet display (+7.0 percent) and FSIs (+3.9 percent) were the only media types with spending increases for the nine month period. Online growth was propelled by telecom, travel and auto advertisers. FSIs benefitted from CPG companies expanding their couponing efforts as consumers became more value-conscious.

Among Television media, Cable TV networks continued to translate audience gains into a larger share of ad revenue. Year-to-date Cable TV expenditures slipped by just 2.9 percent, a much stronger performance than the TV sector as a whole. Network TV, now faced with comparisons against the 2008 Summer Olympics bonanza, saw year-to-date spending fall 11.5 percent and Q3 spending tumble 25.1 percent. Spot TV expenditures (-27.5 percent) remained depressed due to persistent weakness in auto and retail activity as well as cyclical reductions in political advertising.

Magazines (-19.7 percent), Newspapers (-22.8 percent) and Radio (-22.8 percent) severely lagged the overall ad market during the January-September period. Third quarter losses for each of these broad media groupings were less severe compared to the first half of the year and this could be construed as a positive indicator. However, these media are also into their second year of steep declines so Q3 comparisons are against the relatively low levels of year-ago spending.

Overall, local media ad spending was down 23.7 percent through September while national media dropped 10.1 percent.

Source: TNS Media Intelligence

1. Figures are based on the TNS Media Intelligence Stradegy™ multimedia ad expenditure database across all TNS MI measured media, including: Network TV; Spot TV (122 DMAs); Cable TV (71 networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (231 publications); Sunday Magazines (7 publications); Local Magazines (22 publications); Hispanic Magazines (14 publications); Business-to-Business Magazines (278 publications); Local Newspapers (143 publications); National Newspapers (3 publications); Hispanic Newspapers (47 publications); Network Radio (5 networks); National Spot Radio; Local Radio (32 markets); Internet; and Outdoor. Figures do not include public service announcement (PSA) data.
2. Cable TV figures do not include Hispanic cable networks
3. Spot TV figures do not include Hispanic stations
4. Spanish Language TV includes 4 Hispanic broadcast networks, 4 Hispanic cable networks and 71 local Hispanic TV stations.
5. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications.
6. Newspaper media figures reflect print editions of publications.
7. Local Radio includes expenditures for 32 markets in the U.S.
8. FSI data represents distribution costs only.

Ad Spending by Advertiser

The top 10 advertisers in the first nine months of 2009 spent a combined total of $11,757.6 million, a 5.9 percent decrease from last year. Across the top 100 companies, a more diversified group of marketers representing almost one-half of total ad expenditures, spending fell by 7.9 percent. Among the top 100 companies, 67 reduced their ad budgets and only 33 increased spending.

Procter & Gamble was the largest advertiser with $1,941.1 million in expenditures for the January-September period, a 15.9 percent decline versus a year ago.

Wireless telecom providers occupied three of the top ten positions and took different paths to arrive there. Verizon Communications spent $1,692.1 million, down 5.8 percent from last year. AT&T spent $1,339.4 million, 6.1 percent less than a year ago. Both advertisers cut Q3 ad expenditures by over 20 percent and this erased their spending increases from the first half of the year. Sprint Nextel, after slashing ad budgets in 2008, continued its aggressive marketing efforts and spent $912.8 million, a gain of 51.1 percent and the largest rate of increase among the top ten companies.

Pfizer was the only other top advertiser to raise its spending, finishing the period at $896.6 million, up 11.9 percent. While the acquisition of Wyeth helped pushed Pfizer into the top tier, the spending gains were primarily attributable to its own portfolio of prescription drugs, particularly Lipitor and Caduet.

General Motors was the lone automotive advertiser to make the top ten list, even as it reduced media budgets by 15.5 percent during the first nine months, to $1,352.6 million. Emerging from bankruptcy in July, GM quickly ramped up marketing activities and hiked its Q3 expenditures by 4.2 percent.

Source: TNS Media Intelligence

1. Figures do not include FSI, House Ads or PSA activity
2. The sum of the individual companies may differ from the Total shown due to rounding

Ad Spending by Category

The top ten advertising categories in January-September 2009 spent a total of $50,952.3 million, down 14.1 percent from a year ago. Automotive was the leading category at $7,491.9 million, a drop of 30.8 percent and proportionately in line with the decline in new vehicle sales. Dealer spending fell more severely than manufacturers. Automotive expenditures have now declined for seventeen consecutive quarters.

Ongoing competition among wireless phone companies and TV service providers propped up Telecom spending, which finished the period at $6,190.3 million, a gain of 0.4 percent. The only other leading category with an increase was Pharmaceuticals, up 0.6 percent to $3,483.6 million.

Financial services advertising plunged 23.7 percent to $5,673.1 million, the largest rate of decline among the top ten. Online stock brokerages and investment advisors, chasing a rising stock market, showed some tentative signs of an advertising revival in the third quarter. However, retail banks and credit card companies continued to be extremely cautious with their marketing budgets.

Local advertising categories continued to sputter as seen in the results for Local Services and Amusements (down 15.0 percent, to $5,609.9 million) and Miscellaneous Retail (off 17.4 percent, to $4,751.0 million). The latter includes all retail segments except department stores (where spending fell just 5.1 percent) and home furnishing/building supply stores (down 20.4 percent).

Source: TNS Media Intelligence

1. Figures do not include FSI or PSA activity.
2. Miscellaneous Retail does not include these retail segments: Department Stores, Home Furnishing/Building Supply Stores
3. The sum of the individual categories may differ from the total due to rounding.

Branded Entertainment

TNS Media Intelligence continuously monitors Branded Entertainment within network prime time and late night programming. The tracking identifies Brand Appearances and measures their duration and attributes. Given the short length of many Brand Appearances, duration is a more relevant metric than a count of occurrences for quantifying and comparing the gross amount of brand activity that viewers are potentially exposed to in the program versus in the commercial breaks.

In the third quarter of 2009, an average hour of monitored prime time network programming contained 11 minutes, 46 seconds (11:46) of in-show Brand Appearances, a 31 percent increase from a year ago. In addition, there was 14:07 per hour of network commercial messages. The combined total of 25:53 of marketing content represents 43 percent of a prime-time hour.

Unscripted reality programming had an average of 15:04 per hour of Brand Appearances as compared to just 5:33 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows averaged 11:18 per hour. The combined load of Brand Appearances and network ad messages in these programs reached 26:23 per hour, or 44 percent of total programming time.

Source: TNS Media Intelligence

1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded.

About TNS Media

Established in more than 30 countries, TNS Media explores all media – print, radio, TV, Internet, social media, cinema and outdoor worldwide, 24 hours a day, seven days a week, and offers a full range of insights, analyses and audience measurement services.

TNS Media combines the deepest expertise in the industry to provide media and marketing intelligence including advertising expenditure monitoring, advertising creation monitoring, audience measurement, market influence analytics, online consumer behavior tracking, news monitoring, sports sponsorship evaluation and more. The TNS Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers around the world. For further information, please visit www.tnsmediagroup.com

About Kantar

Kantar is one of the world’s largest insight, information and consultancy networks. By uniting the diverse talents of its 13 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 26,500 employees work across 95 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies.

For further information, please visit us at www.kantar.com

“The ad market declined significantly in the first quarter, overtaken by a collapsing economy which prompted consumers and marketers alike to shut their wallets and conserve,” said Jon Swallen, SVP Research at TNS Media Intelligence. “While there are hopeful signs of general economic indicators bottoming out, the advertising sector still appears to be lagging behind. Available data from second quarter shows ad expenditures tracking on a comparable plane to recent months.”

“Given the struggling economy and the historic challenges being faced by key industry sectors such as automotive and financial services, and certain media categories, a decline in Q1 ad expenditures, while significant, is not wholly unexpected,” said Dean DeBiase, CEO, TNS Media. “But as has traditionally been seen in recessionary periods, some sectors and brands are approaching a depressed marketplace as an opportunity to gain share and are increasing spending accordingly. The advertising industry, too, while struggling, is understanding this is a period for innovation and we are seeing efforts to reboot their approach through the advent of new technologies and tools such as addressable advertising, and the first steps to integrating ad measurement in a synergistic manner across all media platforms.”

Ad Spending By Media

Local media suffered most with aggregate expenditures sinking 25.4 percent in the first quarter of 2009. The rate of decline was similar across Spot TV (-27.5 percent), Local Newspapers (-25.1 percent) and Local Radio (-26.8 percent). Each of these segments was ravaged by deep spending cutbacks in core categories such as automotive, retail and local services.

For national media, combined ad spending fell 8.5 percent versus a year ago. Within this segment, performance was sharply defined along the lines of print versus television versus online.

National Newspapers (-28.5 percent), B-to-B Magazines (-25.5 percent), Consumer Magazines (-19.2 percent) and other print media were clustered on one track and their revenue declines were driven by fewer ad pages.

Network TV (-4.2 percent), Cable TV (-2.7 percent) and Syndication (+0.2 percent) occupied a middle tier and each of these saw business improve slightly at the end of the quarter, paced by Motion Picture and Restaurant category spending. At an exclusive upper level, Internet display expenditures grew 8.2 percent as telecom, travel and local retail advertisers expanded their online marketing programs.

Source: TNS Media Intelligence

1. Figures are based on the TNS Media Intelligence Stradegy™ multimedia ad expenditure database across all TNS MI measured media, including: Network TV; Spot TV (135 DMAs); Cable TV (67networks); Syndication TV; Hispanic Network TV (4 networks); Consumer Magazines (226 publications); Sunday Magazines (7 publications); Local Magazines (24 publications); Hispanic Magazines (19 publications); Business-to-Business Magazines (362 publications); Local Newspapers (148 publications); National Newspapers (3 publications); Hispanic Newspapers (48 publications); Network Radio (5 networks); Spot Radio; Local Radio (32 markets); Internet; and Outdoor. Figures do not include public service announcement (PSA) data.

2. Spot TV figures do not include Hispanic Spot TV data.

3. Magazine media includes Publishers Information Bureau (PIB) data and reflect print editions of publications.

4. Newspaper media figures reflect print editions of the publications.

5. Local Radio includes expenditures for 32 markets in the U.S.

6. FSI data represents distribution costs only.

Ad Spending by Advertiser

The top 10 advertisers in the first quarter of 2009 spent a combined total of $4,019.5 million, a 5.7 percent decline from last year. Across the top 100 companies, a more diversified group of marketers representing nearly one-half of total ad expenditures, spending fell by 8.1 percent. The sharpest reductions occurred further down the rankings among the long tail of small advertisers who collectively account for the last one-fifth of total industry spending. Media outlays among this fragmented group tumbled 22.3 percent, a reflection of their sensitivity to economic and business conditions.

Procter & Gamble, despite slashing expenditures 17.8 percent, remained the country’s largest advertiser with $674.1 million in spending. The company pared TV allocations by nearly 30 percent across its broad portfolio of brands while leaving magazine budgets untouched.

Johnson & Johnson was the only other packaged goods marketer in the top 10 and it quietly increased total ad expenditures by 28.9 percent, to $397.2 million, its highest level of quarterly spend in two years.

Among the wireless telecommunication providers, Sprint Nextel aggressively hiked its spending by 30.3 percent, to $317.7 million, primarily to promote a new bundled value plan. Verizon Communications raised expenditures by 3.1 percent to $577.1 million while rival AT&T registered a small decline of 1.2 percent, to $459.4 million.

General Motors burned through $424.2 million of ad expenditures in the quarter, a 19.1 percent drop from a year ago but a smaller rate of decrease than most of its competitors.

1 Figures do not include FSI, House Ads or PSA activity.

Ad Spending by Category

The Top 10 advertising categories in the first quarter of 2009 spent a combined $16,735.6 million, down 13.6 percent from a year ago. The aggregate drop was skewed by the reduction in auto category expenditures, which nose-dived 28.4 percent to $2,309.0 million. Auto manufacturer spending was off 15.2 percent and dealer advertising was down a stunning 48.9 percent, paralleling a 38 percent decline in new vehicle sales during the period.

Only two top categories registered spending increases. Telecom expenditures rose 3.0 percent and reached $2,078.1 million with gains occurring across major wireless, cable and satellite TV providers. Restaurant ad budgets were up 2.5 percent to $1,415.5 million, paced by quick service establishments.

On the down side, Financial Services shed more than $400 million of spending and finished the quarter at $1,968.4 million, down 18.1 percent. Reductions were most prominent among loan products (-67.9 percent), credit cards (-41.0 percent) and retail banking (-20.7 percent). Other notable double-digit declines occurred among Local Services (-14.7 percent, to $1867.0 million), Direct Response (-17.4 percent to $1,635.8 million) and Travel & Tourism (-14.3 percent, to $1,140.4 million).

Source: TNS Media Intelligence

Note: Figures do not include FSI or PSA activity. The sum of the individual categories may differ from the total due to rounding.

1 Miscellaneous Retail does not include these retail segments: Department Stores, Home Furnishing & Appliance Stores

Branded Entertainment

TNS Media Intelligence continuously monitors Branded Entertainment within network prime time and late night programming. The tracking identifies Brand Appearances and measures their duration and attributes. Given the short length of many Brand Appearances, duration is a more relevant metric than a count of occurrences for quantifying and comparing the gross amount of brand activity that viewers are potentially exposed to in the program versus in the commercial breaks.

In the first quarter of 2009, an average hour of monitored prime time network programming contained 10 minutes, 35 seconds (10:35) of in-show Brand Appearances and 13:54 of network commercial messages. The combined total of 24:29 of marketing content represents 41 percent of a prime-time hour.

Unscripted reality programming had an average of 19:16 per hour of Brand Appearances as compared to just 5:31 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows averaged 11:30 per hour. The combined load of Brand Appearances and network ad messages in these shows reached 29:40 per hour, or 49 percent of total programming time.

Source: TNS Media Intelligence

1 Figures include network advertisements, station promotions and PSAs. Local commercial time is excluded.

Among all monitored network programming during the period, The Biggest Loser: Couples had the highest average volume of Brand Appearance time at 48 minutes, 5 seconds (48:05) per hour. Rounding out the top five were Hell’s Kitchen (43:00); American Idol (40:49); Chopping Block (38:54); and Knight Rider (32:10).

About TNS Media

Established in more than 30 countries, TNS Media explores all media – print, radio, TV, Internet, social media, cinema and outdoor worldwide, 24 hours a day, seven days a week, and offers a full range of insights, analyses and audience measurement services.

TNS Media combines the deepest expertise in the industry to provide media and marketing intelligence including advertising expenditure monitoring, advertising creation monitoring, audience measurement, market influence analytics, online consumer behavior tracking, news monitoring, sports sponsorship evaluation and more. The TNS Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers around the world. For further information, please visit www.tnsmediagroup.com

About Kantar Group and TNS

The Kantar Group is one of the world’s largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies – including the recently-acquired TNS – the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies. For further information, please visit www.kantargrouptns.com

Next year will be the first in many in which some components of interactive advertising show little or no growth, or may even decline. The changes foreseen are not cyclical, and show no sign of improving quickly, irrespective of upward movement in the nation’s economy. For local interactive media, the big slowdown has begun a year earlier than we anticipated. The spending levels by local advertisers – which have grown at a frenetic 47% this year – are expected to slow down to a relatively paltry 8% in 2009. Local media companies projecting double-digit and even triple-digit increases in their interactive budgets next year will have a very difficult time meeting those expectations – especially if they rely on banner ads. Traditional forms of interactive advertising such as banner ads are quickly falling out of favor and site publishers should begin looking at expanding their ad arsenal with other offerings. Download the executive summary to read more.

Forecasting how businesses will spend their precious ad dollars next year is like skeet- shooting in a windstorm. We’ve got the velocity and trajectory down pat, but the gusts caused by the credit crisis make it harder to pinpoint the target. The generalities, however, are certain for 2009: spending on traditional media will decline, while spending on interactive will increase. Our latest forecast has onine media dropping 1.4 percent next year, while interactive media increases 7.2 percent.

For local interactive media, the big ad slowdown has begun a year earlier than we anticipated. Spending by local advertisers – which has grown at a frenetic 47 percent this year – is expected to diminish to a paltry 7.8 percent in 2009. Local media companies projecting double-digit and even triple-digit increases in their interactive budgets next year will have a very difficult time meeting those expectations – especially if they rely on banner ads. The credit crisis has magnified trends that were already in motion. For most of this decade, advertisers have been viewing interactive media as a more effcient, less costly way of reaching consumers than traditional media buys. “Adjusting the dials” of advertising expenditures is normal business behavior in bleak economic environments. It can be seen in prior downturns as far back as 75 years ago, when radio advertising got a big boost (at the expense of newspapers) during The Great Depression, and 17 years ago when cable advertising expenditures accelerated during the 1991-92 recession. The dials are just about adjusted for interactive media, with some final tweaking occurring next year.

Key Topics Covered:

Executive Summary

CHAPTER 1 – The National Forecast

- Fig.1: US Media Ad Revenue 2007-2009

- Fig.2: Interactive Ad Format Spending, 2007-2009

- Fig.3: Change in National & Local “Standard Format” Ad Spending, 2004-2009

- Fig.4: 2008 Interactive Ad Spending – B2B versus B2C Components

CHAPTER 2 – Credit Crisis Impact

- Fig.5: Original and Recast 2008 US Ad Media Revenue Projections Compared

- Fig.6: Original and Recast 2008 US Interactive Ad Format Spending Projections – Compared

- Fig.7: Forecast Effect of Credit Crisis on “Standard Format” Ad Sales, 2004-2009

- Fig.8: Forecast Effect of Credit Crisis on Paid Search Ad Sales, 2004-2009

- Fig.9: Forecast Effect of Credit Crisis on Direct E-mail Ad Sales, 2004-2009

CHAPTER 3 – Promotions Spending – the Rest of the Story

- Fig.10: Promotions Spending 2007-2009

- Fig.11: Online Promotions Spending, 2006-2013

- Fig.12: Percentage Growth in Online Promotions Spending From Previous Year, 2007-2013

- Appendix A – How Borrell Associates Forecasts

- Appendix B – 2009 Local Interactive Ad Spending Forecast by DMA

For more information visit http://www.researchandmarkets.com/research/dac4c3/2009_outlook_big

BROOMFIELD, Colorado – TruEffect, a provider of next-generation advertising technology, today announced that its patent-pending DirectServe™ Technology has been certified across Google’s AdSense content network. DirectServe™ is currently the only solution certified by Google to deliver display advertisements from an advertiser’s own Web domain on Web sites participating in Google’s new content network. DirectServe enables advertisers to create a direct relationship with consumers visiting Web sites on the Google content network by targeting them with the right message at the right time, within the context of their relationship.

A June 2008 study from WPP’s GroupM shows digital media’s share of worldwide advertising expenditures is expected to hit 15 percent in 2009, almost double from four years ago. Digital media will remain the main source of growth as ad spending in traditional media declines. As this shift continues, marketers will seek more effective ways to target new and known customers.

“Google’s certification of DirectServe is further testament to the adoption of TruEffect’s model, which enables marketers to spend their ad dollars more efficiently and helps increase ROI,” said Ron Hill, president and CEO, TruEffect. “With DirectServe, TruEffect puts advertisers in control of their own interactive campaign data. Simultaneously, we’re ensuring consumers that information is being shared solely with brands they know and trust.”

DirectServe’s approach to effective message targeting allows advertisers to distinguish between consumers with whom they have a relationship from consumers who are new to them. By seamlessly integrating with their existing data model, advertisers are able to address consumers directly and develop a dialog based on the nature of their relationship. More information about DirectServe is available at http://www.trueffect.com/products/DirectServe.aspx.

ABOUT TRUEFFECT

TruEffect, a provider of next-generation advertising technology, offers the first advertising solution enabling interactive marketers to have exclusive control of their online campaign data, helping them to create a direct relationship with customers and seamlessly incorporate customer data into the overall marketing ecosystem. Headquartered in Broomfield, CO, TruEffect is based on patent-pending technology designed for advertisers investing more in interactive marketing and looking to manage Internet ad campaigns more efficiently and with greater control. Its SafeServe, TruAdvertiserXLS and DirectServe products are used by leading Internet marketers. TruEffect is a Microsoft Certified Partner. For more information visit www.TruEffect.com.