Automakers, Media Publishers Remain Top Advertisers
Most major companies that regularly issue reports on ad industry spending have predicted a moderate increase this year followed by a more significant gain for 2014. On a global basis, some regions will be stronger performers than others. Nielsen highlights these trends along with which industries are spending more, and which media formats are gaining, in its most recent Global AdView Pulse report.
Nielsen analysts say that global year-to-date ad growth has been around 2.8%. While activity was sluggish at the beginning of the year, June marked a healthy 5.8% increase. Regions with the best increases in the ad market are Latin America (12.1%) and Asia Pacific (6.4%). The North American market has come in at 2.7%, slightly below average.
TV continues to be the favorite format for marketers with a 4.2% increase in spending. TV accounts for 57.6% of media spending. Marketers continue to pull back spending on other traditional formats. Newspapers suffered the most with a 2% drop in spending. Magazines, with a 1.9% drop, and radio, with a 0.9% decrease, weren’t far behind. Digital advertising is enjoying a 26.6% increase so far this year and marketers see the wisdom in out-of-home promotions, putting 5% more in that format as well. In Europe, where the economy has been struggling, only out-of-home has seen an increase, 4.2%. Even online advertising has fallen in Europe, according to Nielsen data. On the other hand, marketers are pumping 38.5% more into digital ads in Latin America and 43% more in Asia Pacific.
The biggest ad growth is coming from the FMCG (food, cosmetics, housekeeping products) sector and the industry and services sector with gains of 5.7% and 7.2%, respectively. However, automotive makers remain at the top of the list in terms of share of spend with 9.2%. Media and publishing is second at 8.9% and healthcare comes in third with 7.5%.
Healthcare-related spending may continue to rise in the U.S. for the next several months as state agencies and insurance companies promote their plans to uninsured consumers. Have you been promoting your media space to these organizations?