News

U.S. Advertising Spending Rose 0.6% in 2007, Nielsen Reports

New York, NY – The Nielsen Company today reported that advertising spending for the full year 2007 rose 0.6% compared to full year 2006, with Internet continuing to demonstrate the strongest performance (+18.9%) of any media category. (For all tables referenced in this release, please view Full PDF Download of release).

According to preliminary figures from Nielsen Monitor-Plus, the leading provider of competitive advertising information, advertising spending was mixed across media with gains in some categories and declines in others. In addition to Internet advertising, other media categories that showed an increase in 2007 were National Magazines (7.6%), Outdoor (7.2%), National Sunday Supplements (4.9%), National Cable TV (2.2%), and Spanish-Language TV (1.5%).

“Several traditional media outlets are demonstrating resilience and strong growth in an overall softening economy, with Outdoor continuing a five-year steady climb in advertising spending,” said Annie Touliatos, Director, Product Development and Marketing, Nielsen Monitor-Plus. (Refer to table “Total Advertising Spending in Full PDF Download of release).

U.S. advertising growth was substantially lower than other regions of the globe, with Asia-Pacific reporting a 12.1% increase and EMEA (Europe, Middle East, and Africa) up nearly 5%. Specifically,   Newspapers have shown a steady decline year-over-year in the U.S., while all other countries measured by The Nielsen Company reported growth for this media category.

Advertiser Spending

Advertising spending across monitored media for the top 10 companies in 2007 reached $17.9 billion, down an average of 4% from 2006. Seven out of the ten advertisers decreased budgets. The three companies that increased their spending were Procter & Gamble, Verizon Communications (+6% each), and AT&T (+2%). Procter & Gamble, the largest advertiser and also the advertiser with the largest increase in budget (+$205 million), boosted spending for many brands including Pantene Pro-V Hair Care Products, Gillette Fusion Razor-Electric Power, Cover Girl Volume Exact Mascara, and Olay Definity Moisturizing Facial Deep Penetrating Foaming. In addition, many new brands were introduced; of these, Secret Clinical Strength Antiperspirant/Deodorant Advanced Solid had the largest advertising budget.

In contrast, General Motors showed the largest advertising spending decline in terms of dollars (-$267 million). In 2007, GM cut back on advertising for Chevrolet Tahoe Trucks, GMC Yukon Trucks, Buick Lucerne Autos, and Hummer H3 Trucks, among others.
(Refer to table “Advertiser Spending” in Full PDF Download of release).

Category Spending

Spending for the 10 largest product categories reached $44.6 billion in 2007, 3% less than in 2006. In all, six categories showed decreased spending in 2007. The top category in terms of total dollars, Automotive, also had the greatest dollar and percent decline (-$1.48 billion; -11%). Financial/Investment Services had the fastest percentage growth (+14%), while Wireless Telephone Services had the greatest dollar increase (+$422 million). Within the Financial Services category, FMR Corp. was the top spender ($220.7 million), followed by Scottrade Inc. and Wachovia Corp., each with a budget of $119 million. In the Wireless Product category, Verizon Communications Inc. and AT&T Inc. were the top two advertisers in terms of total spending for 2007, each with a budget of $1.2 billion.
(Refer to table “Category Spending” in Full PDF Download of release).

Product Placement

Broadcast Network Product Placement
Nielsen Product Placement Service reported an overall 13% increase in the number of product placement occurrences in prime-time broadcast network programming for 2007. The Top 10 programs featured 25,950 occurrences in 2007, compared with 22,553 occurrences in 2006. “American Idol,” with 4,349 occurrences,was the #1 show in terms of the number of product placements in 2007; the show held the same position in 2006, when it aired 4,086 brand occurrences.

The Top 10 featured brands on prime-time broadcast network television for 2007 accounted for 11,666 occurrences; in comparison, the top ten brands accounted for 10,320 occurrences in 2006.  Coca-Cola, primarily through its association with “American Idol,” was the top brand in both 2206 and 2007, with 3,174 occurrences in the last year. 24 Hour Fitness Centers (1,931 occurrences) and Chef Revival Apparel (1,257 occurrences) round out the top three brands on Broadcast television in 2007. (Refer to table “Top 10 Programs for 2007: Product Placement on Broadcast TV ” in Full PDF Download of release).

Cable Network Product Placement
Nielsen Product Placement Service reports an overall decrease of 9% in the number of product placement occurrences in prime-time cable network programming for 2007, based on the cable programs tracked on A&E, Bravo, HGTV, MTV,and TLC. The Top 10 programs featured 163,737 occurrences for 2007—compared with 206,054 occurrences for 2006. “American Chopper,” which premiered on TLC in January 2007, was the #1 cable network show in terms of the number of product placements, with 52,503 occurrences. “Miami Ink” (TLC, 20,594 occurrences) and “Dog the Bounty Hunter” (A&E, 19,179 occurrences) held the second and third positions, respectively.

The Top 10 featured brands on prime-time cable network television for 2007 accounted for 43,475 occurrences—a decrease from 53,530 in 2006. Three apparel categories made the top 10: Orange County Chopper Apparel (the top brand overall with 9,772 occurrences), Nike Apparel (3,002 occurrences), and DeVille (2,557 occurrences). (Refer to table “Top 10 Programs for 2007: Product Placement on Cable TV ” in Full PDF Download of release).

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions and recognized brands in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA.
For more information, please visit www.nielsen.com.