Monday, June 13, 2011

U.S. ad spending in Q1 still up, but slower

U.S. ad spending continued to increase in the first quarter of 2011, although at a slower pace compared to the previous period, according to the latest data released by Kantar Media Intelligence.

Advertising revenues increased 4.4 percent to $32.5 billion in the first quarter. The increase was 7 percent in the fourth quarter of 2010, 8.7 percent in the third and 5.1 percent in the second, Media Post reported.

”With the advertising recovery in its second year, 2011 gets bench-marked against the elevated spending levels of last year and that makes for tougher comparisons,” said Jon Swallen, Kantar’s VP of research.

"The market expanded by $1.4 billion during the first quarter, which nearly equals the amount of gain at the start of 2010 when the recovery began. In addition, a rising proportion of advertisers are increasing their ad budgets and this indicates spending growth is still rippling outward through the market," Swallen added, Forbes reported.

Television advertising overall gained 5.3 percent, mostly thanks to Cable TV, with a 31.9 percent increase. Syndication TV marked a 16.5 percent rise in advertising, while network TV plunged 10.4 percent.

Internet display advertising was up 14.6 percent, while outdoor and magazines increased 12.5 percent and 4.5 percent, respectively.

Newspapers declined 7.5 percent, the poorest-performing across all media, Media Post reported.

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