Ad Industry Records Significant 1st Quarter Gain, Poised for Continued 2010 Growth

In the 1st quarter of 2010, the ad industry witnessed an increase of 5.1%  compared to the same period in 2009. This growth may signal the end of the recession for media firms. According to Kantar Media, some industry sectors fared better than others. And not surprisingly, advertising rebounds are occurring more quickly in specific business segments.

Here’s a look at the 1st quarter growth rates by media format:

  • TV 10.5%
  • Magazines (-3.2%)
  • Newspapers (-3.7%)
  • Internet display 5%
  • Radio 7.4%
  • Outdoor (-0.4%)
  • FSIs 12.8%

While some news reports have suggested that small business spending will lead the country out of recession, the numbers don’t prove true for advertising. Kantar’s numbers suggest that the spending increase on advertising by the top 100 advertisers was 11.0%. The largest U.S. advertiser, CPG giant Procter& Gamble, shelled out $772.6 million in the first quarter, 17.7% more than it spent in the same period last year. AT&T and Verizon Communications placed in the top 10 as they continue to battle for market share and this competition  will likely extend into next year. In addition, the company with the largest growth rate in advertising, Pfizer, spent an additional 46% to market Lipitor, “prior to the brand going off patent in 2011." By comparison, the ad spending by smaller companies, outside of the top 1,000, declined by 1%.

These top line numbers suggest a healthy recovery in the media market but data from Q2 will help us see if a clear trend is being established.
[Source: Kantar Media Reports U.S. Advertising Expenditures Increased 5.1% in the First Quarter of 2010. Kantar. 26 May 2010. Web. 23 Jun. 2010] 

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.