Ad Recovery to Continue
After nearly 2 years of declines in the global ad market, the recovery that started in early 2010 seems to be holding. Some traditional media formats are faring better than others according to data released by Nielsen. The overall growth rate for traditional media has been 3.82% this year. And the online sector has seen an 11% increase this year, as reported by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers.
So far this year, the following traditional media formats have seen the strongest jump in spending:
- Cable TV 12.96%
- National Newspaper 10.83%
- National Sunday Supplement 21.55%
- Network TV 8.52%
- Spanish Language Network TV 24.16%
Other traditional media forms are struggling. Business-to-business publications reported the steepest drop, (19.22%). And the local magazine market lost another 7.72% in ad revenue.
Sallie Hirsch, SVP of Research for Nielsen’s automotive unit, says part of what’s driving the ad market is auto ad spending which has seen double-digit growth in 2010. Other strong categories for traditional media have included restaurants (other than quick service), department stores and auto insurance. In the online sector, spending has improved the most in consumer-packaged goods (CPG) and pharmaceuticals.
As we move through the final weeks of political campaigning and into the holiday season, media properties have reason to be optimistic about ending 2010 on a positive note.[Sources: Global Ad Spending Shows Signs of Growth. NielsenWire.com. 11 Oct. 2010. Web. 18 Oct. 2010; Xu, Jodi. Online-Ad Sales Rise 14%. Wall Street Journal. 13 Oct. 2010. Web. 18 Oct. 2010]