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Spanish-language Media Soars as Total Ad Expenditures Stagnate

28 Mar, 2012 By: Jackie Jones

NEW YORK – Total advertising expenditures increased 0.8 percent in 2011 to $144 billion, according to data released by Kantar Media. While general marketing media including digital – with the exception of TV – remained stagnant during the last quarter of 2011, Hispanic TV, magazines and newspaper all experienced significant growth.

Ad spending during 4Q 2011 dipped 1 percent when compared to the same time period the year prior, the first quarterly decline since the end of 2009, according to Kantar.

“The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011,” said Jon Swallen, senior vice president of research at Kantar Media. “Whether this is an isolated occurrence or an early sign of digital dollars moving toward emerging and unmeasured digital platforms bears watching.”

Television continued to lead the ad market in the fourth quarter, while Spanish-language TV ad spending surged 19.1 percent, paced by higher sell-out levels at over-the-air networks. For all of 2011, the segment increased 8.3 percent.

Since reaching a post-recession peak in 3Q 2010, advertising growth rates have slowed sequentially for five consecutive quarters, Kantar Media added in its report. Surprisingly, ad expenditures for measured digital media also declined in the fourth quarter.

“Paid search budgets were 6.4-percent lower vs. a year ago with continuing reductions from financial, insurance and local service advertisers,” Kantar’s report read. “Display investments decreased 5.9 percent in fourth quarter, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, paid search declined 2.8 percent and display increased 5.5 percent.”

Spending among the 10 largest advertisers in 2011 reached $16.1 million, a 2.8-percent decline compared to a year ago, while Procter & Gamble remained the top advertiser for the ninth consecutive year with spending of $2.9 million (down 5.4 percent compared to last year). AT&T was the second-largest advertiser, while Chrysler posted the largest growth rate among the top 10 marketers.

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