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Kantar: 2Q Ad Spending Rises 3.5 percent

11 Sep, 2013 By: Doug McPherson

NEW YORK – Marketers upped their spending in U.S. in the second quarter by 3.5 percent (totaling $35.8 billion) compared to the same quarter in 2012, Kantar Media says.

Jon Swallen, chief research officer at Kantar Media North America (a research partner of Response), said in a statement that ad spending has now increased for six consecutive quarters and that the 3.5-percent mark is the best performance in a non-Olympic period since the end of 2010.

But two unusual phenomena helped the gain: advertisers conserving their second-quarter 2012 budgets before the Summer Olympics, and more NBA playoff games in the quarter this year than last year.

"Without these factors, second quarter ad spend growth would have been lower by about one full percentage point," Swallen said.

TV headlined the ad market in 2Q 2013 with overall growth of 6.4 percent, thanks in part to those post-season basketball games. Cable TV spending jumped 14.9 percent due in part to a larger number of NBA playoff telecasts as well as higher primetime ad prices at leading networks. Network TV expenditures rose 4.9 percent, with comparisons helped by the extra revenue from a seven-game NBA championship series (versus five games in 2012).

Spot TV expenditures declined 3.5 percent in the period. The reduced volume of political ad spending that regularly occurs in odd-numbered years is becoming more of a drag for local stations as the year progresses. Excluding the political category, spot TV ad spending was level versus a year ago.

Spanish Language TV spending increased 6.1 percent in the second quarter on higher budgets from direct response marketers, auto manufacturers and restaurants. Hispanic networks continue to see stronger results than local market Hispanic stations.

Internet display advertising increased 4.1 percent during the period. Spending totals, which do not include either video or mobile ad formats, got a significant lift from both financial services and telecom advertisers. Investments by travel and tourism advertisers also increased leading into the key summer vacation season.

Outdoor media expenditures were up 7.4 percent in the second quarter, the 13th-consecutive quarter of year-over-year increases, and were spurred by healthy gains from its core categories of restaurants, local retail and local service businesses. Outdoor media also continues to see gains due to the expansion of new digital formats.

Radio had mixed results. Spending in national spot radio rose 5.8 percent with strong demand from telecom, restaurants and retail segments. But local radio fared less well as quarterly expenditures dropped 1.6 percent.

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