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Overall US ad revenue for 2009 was $125 billion, down 12%. Newspapers and radio fared the worst (down 20% each) with magazines (down 17%) not far behind. Online display ads were up 7%. Infographic supplied by the Business Insider’s Chart of the Day.
From PaidContent:
“Search engine marketing firm Efficient Frontier has upped its estimates for search ad spending this year. The company now expects spending to increase between 15 and 20 percent, up from its earlier estimates of 10 to 15 percent growth, in part due to the economic recovery. By contrast, Efficient Frontier says search ad spending increased six percent in 2009.”
In Q4 2009 Google added to its enormous market-share lead:
“That was a shift from previous reports, which had indicated that Google was losing ground to Bing. Efficient Frontier says Google’s share of overall search ad spending increased to 74.5 percent from 73.9 percent during the previous quarter. Bing’s share, meanwhile, shrunk to 5.1 percent from 5.3 percent.”
Newspapers have lost 7 million subscribers in the past 25 years, while online newspapers have picked up 30 million readers in the past five. See? The Internet’s not all bad! (Though you might argue that email’s mostly bad, since 90% of emails sent each day are spam.)
(Thanks, @emilyquestions!)
The global outlook is a bit better:
“Global ad spending will decline 10.2% in 2009 when the year is complete but eke out a 0.9% increase in the coming year, according to Publicis Groupe’s ZenithOptimedia.”
Internet advertising is the only ad sector to post gains in 2009. More at Ad Age.
From PaidContent:
“The net was the only medium to attract more money in 2009 in Zenith’s figures, though its growth curve is flatter than the early-2000s heyday growth of 40+ percent a year. It’s now on track for more modest but consistent growth pace of 9.5 percent (2010), 12 percent (2011) and 13 percent (2012), in line with that of TV, which will remain the dominant medium.”
Spending mix, as forecast by Zenith, through 2012:
Among SAI’s list of 22 magazines kicking butt amid the recession, two of the titles are men’s body building mags: Muscle & Fitness and Flex. That surprised me….
From NY Times:
“Newspaper sites are the patent-leather stilettos of the online world: they get used for special occasions, but other shoes get much more daily wear. The beneficiaries of this behavior are networks and exchanges like Advertising.com from AOL and DoubleClick Ad Exchange from Google, which dominate the buying and selling of extra space.
“At nonnewspaper sites like Yahoo and Google, revenue from display advertising — the image-based ads on Web pages — seems to be returning. Yahoo’s display revenue on its Web sites increased 2 percent in the third quarter, though it was down from a year earlier. Display revenue increased at Google from a year earlier. “
ZenithOptimedia estimates Internet advertising overall to be up 9.2%, to $54.1 billion.
At a Goldman Sachs conference on Tuesday, Murdoch said all ad-supported units at Newscorp have been calling on a more receptive market in recent weeks. More at Hollywood Reporter.
While Nielsen and TNS both report that first-half 09 ad spending was down over the same period of 2008, by 15.4% and 14.3% respectively, TNS saw the online advertising segment up 6.5%. (Nielsen says online, like advertising as a whole, was down in the first half — but only by 1%.) According to TNS, CPG and wireless telecom are driving online’s growth.
From PaidContent:
“As for the reason TNS found for display’s sudden rise, the researcher pointed to the spending shift from traditional to online by consumer packaged goods marketers. That trend has been accelerating over the past year and is likely to continue, thanks to the promise of lower cost, better targeted spots.”
Source Silicon Alley Insider.
Only cable TV eked out more ad revenue in the first half of 2009 than it did in the first half of last year. Internet was down 1%. The rest is mostly bad news: An industry-wide contraction of more than 15%, with the usual suspects feeling the most pain.
That’s according to Adify sales data assembled as a Chart of the Day at SAI. No surprises in the composition of the top 3. It’s interesting, though, to see the categories that are experiencing a post-recession bounce: tech, food and real estate.