Ad research think tank Kantar Media has released some media-specific results for 2011 (for retailers, on out of home adverts), but has just released its all-media, all-verticals results.
Total advertising expenditures increased 0.8% in 2011 and finished the year at $144.0 billion in 2011. Ad spending during Q4 dipped 1.0% over Q4 2010, which was the first quarterly decline since the end of 2009. Since reaching a post-recession peak in Q3 2010, advertising growth rates have slowed sequentially for five consecutive quarters.
“The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011,” said Jon Swallen, SVP Research at Kantar Media Intelligence North America. “Some mature digital media formats were also touched by the year-end tide of reduced spending. Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly towards emerging and unmeasured digital platforms bears watching as 2012 unfolds.”
Measured Ad Spending By Media
Television continued to lead the ad market in the fourth quarter. Network TV expenditures jumped 7.7% year-over-year and were helped by strong pricing for football, a baseball World Series that went the maximum seven games and the launch of The X Factor singing competition program. The rate of Cable growth eased during Q4, finishing at +2.4% as higher demand from restaurants and retailers was offset by reductions from consumer packaged goods. For the full year, Network TV decreased by 2.0% while Cable rose 7.7%.
Spanish language TV ad spending surged 19.1% in fourth quarter, paced by higher sell-out levels at over-the-air networks. For all of 2011, the segment increased 8.3%.
Syndication TV benefitted from higher spending by department stores and health-and-beauty brands and saw expenditures soar 11.0% in Q4. Full year spending advanced by 15.4%.
Spot TV expenditures fell 8.7% in the fourth quarter but the more significant indicator was that November and December spending were each down, despite easy comparisons against diminished, post-election spending volume of a year ago. Full year Spot TV spending dropped 4.5%.
Free Standing Inserts achieved healthy gains in the fourth quarter with spend rising 3.0%. Although manufacturers have been distributing fewer FSI coupons, retailer promotion pages have increased significantly and this contributed to the improvement.
Ad expenditures for measured digital media declined in the fourth quarter. Paid Search budgets were 6.4% lower versus a year ago with continuing reductions from financial, insurance and local service advertisers. Display investments decreased 5.9% in Q4, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, Paid Search declined 2.8% and Display increased 5.5%.
Magazine ad spending eroded at year end. Consumer Magazines declined 5.2% in the fourth quarter due to deep cutbacks in auto, food and pharmaceutical advertising. Total year expenditures were level compared to prior year. Outlays in Sunday Magazines fell 9.8% in Q4, the sixth consecutive quarter of year-over-year declines, and were down 7.2% for all of 2011.
Local Newspaper ad expenditures fell 3.9% during the fourth quarter, hurt by the reallocation of retailer advertising budgets to other media channels during the key holiday shopping season. Full year spending was 3.8% lower. The losses in Newspaper spending are consistent with reductions in the amount of space sold.
The pace of spending in Radio media also sagged. Local Radio expenditures were down 3.8% and National Spot Radio plummeted 13.9% in the fourth quarter. The telecom, financial service and automotive categories were prime contributors to these quarterly decreases.
Measured Ad Spending By Category
Expenditures for the ten largest categories grew 3.3% in 2011 and reached $81,629.2 million.
Automotive was the leading category in dollar volume and finished 2011 at $13,890.4 million, up 6.3%. Category spending growth became increasingly bifurcated during the year with Tier 2 and Tier 3 dealer budgets continuing to expand and Tier 1 manufacturer expenditures flattening.
Miscellaneous Retail, which is comprised of all retail segments except Department Stores and Home Improvement purveyors, was the second largest category with 2011 expenditures of $10,019.5 million, up 4.0%. Robust ad spending during the critical year-end holiday season bolstered results.
Insurance registered the largest growth rate among the Top Ten categories with a 13.5% gain to $5,519.0 million. Aggressive competition among auto insurers to gain market share continues to drive media budgets higher.
Financial Services totaled $9,059.9 million of spending, a 3.6% increase. Growth has been fueled by the credit card segment, offsetting continued weakness in ad budgets for investment products and retail banking.
The Telecom category lost ground as 2011 expenditures fell 5.8% to $8,649.0 million. Declines were most pronounced among the leading wireless service advertisers. Aggregates expenditures from TV service providers also slowed.
Sex may sell in advertising, but so do black eyes, cold sores, and suppurating ulcers from meth injections and cancer-riddled lungs.
New research from the W. P. Carey School of Business at Arizona State University reveals that stern warnings about sun damage and fungal spread, for example, are not enough to motivate consumers. In order to work best, ads also have to “disgust and gross us out.”
“Fear creates uncertainty and insecurity over what to do, but disgust gives us a very strong impulse to avoid and distance ourselves from the item or situation as quickly as possible,” explains W. P. Carey School of Business Marketing Professor Andrea Morales, lead author of the work. “When you add a disgusting message or image to an advertisement, it can significantly increase the ad’s effectiveness.”
The new research from Morales and her colleagues, called "How Disgust Enhances the Effectiveness of Fear Appeals," was just posted online by the Journal of Marketing Research. It points to successful, disgusting campaigns, such as one by the New York City Department of Health that centered on images of soda turning into gobs of fat. Department officials say sugar-rich beverage consumption in the area dropped by 12% after the campaign. Other popular advertisements in the disgusting category include the ads for the antifungal medication Lamisil, featuring “Digger the Dermatophyte,” a pus-colored rat-like creature which lifts a toenail and climbs under it. Other examples are a pain-medication ad featuring a pair of feet covered in fire ants, and an anti-smoking matchbook with graphic images of decayed, blackened teeth. A new series Febreze campaign shows blindfolded people in filthy rooms, but smelling pleasant odors thanks to the spray.
“Disgust dramatically enhances persuasion and compliance above and beyond just fear appeals,” says Morales. “You have to go beyond scare tactics to produce a strong and immediate avoidance reaction or a change in behavior. For example, disgust is especially good at motivating people toward losing weight, quitting smoking or changing another behavior to improve their health.”
In particular, the research discusses a real ad campaign in Britain that showed graphic images linking cigarettes with fat-filled arteries. The 2004 campaign by the British Heart Foundation and the local Department of Health was so successful that the United Kingdom’s government is planning to print these pictorial-warning images on all tobacco products sold in the U.K.
In a series of five experiments, the researchers repeatedly found the same thing. When people looked at ads with neutral messages or those simply meant to induce fear, they didn’t work as well as those using disgust.
For example, 155 undergraduate students looked at various versions of a real anti-meth ad with the same words and format, but different, altered images. The version with a teen whose face was covered in open sores was found to be much more effective than the versions with a picture of a coffin or two teens sitting side by side. The coffin, while scary, didn’t portray an immediate, imminent, disgusting threat.
Another experiment involved showing participants a sunscreen ad with identical images, but different text in each case. The most persuasive version talked about “open sores that crust and do not heal for weeks,” “scaly red patches” and “wart-like growths that ooze and bleed.” The reaction to it was far more significant than a neutral ad version and one that simply talked about “a severe sunburn” and the “possibility of heat stroke.”
But - No Gross-Out Tobacco Packaging
The W.P. Carey research was released just one day before tobacco-companies successfully sidestepped a "gross-out mandate." As CNN reports, Federal Judge Richard Leon in a 19-page ruling struck down the 2009 Family Smoking Prevention and Tobacco Control Act. The act would require tobacco companies to place graphic images (of diseased lungs, diseased gums, etc.) on their products warning of the dangers of smoking. "Unfortunately, because Congress did not consider the First Amendment implications of this legislation, it did not concern itself with how the regulations could be narrowly tailored to avoid unintentionally compelling commercial speech," ruled Leon.
The act would have required tobacco companies to rotate nine written warnings on their packaging and ads, such as "Cigarettes are addictive" and "Tobacco smoke causes harm to children." The messages wouldl include alternating and graphic images, including diseased lungs and gums and a corpse. A group of tobacco companies, chief among them R.J. Reynolds and Lorillard, appealed the act, complaining that the warnings would be cost prohibitive and damage promotion of their product.
TED (Technology, Education, Design), the non-profit dedicated to “Ideas Worth Spreading,” has announced the winners of its second Ads Worth Spreading initiative on the opening day of TED2012 in Long Beach, CA. This year's 10 winners were “carefully curated to shine a spotlight on ads which break the mold through longer-form, idea-based storytelling.”
Interestingly, and as Adweek observes, the ads generally push beyond the 30-second mark, and frequently appear online rather than on television. Entries ranged from 30-second spots to 5-minute mini-documentaries, as well as several custom-made pieces humanizing companies and causes.
The Ads Worth Spreading challenge attracted entries from 39 countries, and is designed to recognize intelligence in advertising and and reward “the kind of ads that inspire people to watch, learn and share,” said the company in a release. "We sought out ads that were driven by ideas," said TED Curator Chris Anderson. "At TED, we've seen the power of imagination and innovation. We want to reward companies that have invested in longer-form, beautifully crafted campaigns that value human attention and intelligence, and take the time to tell a thought-provoking story."
The ideas are at times downright strange. For example, the “Rethink Breast Cancer” spot by john st. Toronto features self proclaimed “hot guys” demonstrating breast-cancer self exams—the premise being, “Women are more likely to watch a video if it features a hot guy.” The L’Oreal Paris spot features athlete/model/actor/activist, and dual-prosthetics wearer Aimee Mullins, pushing L’Oreal’s message “Because you’re worth it” beyond its “spend on yourself” origins.
For this year's challenge, and in addition to accepting entries via YouTube from agencies and marketers, TED called upon 25 industry Advocates and six Nomination Teams to seek out compelling ads in six specific categories: Talk, Social Good, Cultural Compass, Creative Wonder, Brand Bravery, and Storytelling.
As Ronda Carnegie, Head of Global Partnerships at TED described, "This year's winners spanned across many categories, drawing from culture, technology and brand expertise. L'Oreal confronted the definition of beauty in a talk, Prudential exhibited powerful storytelling, and Chipotle raised the bar with its creative animation that beautifully communicates their message."
Next year, TED pledges to further evolve the Ads Worth Spreading challenge and engage in deep one-on-one conversation with the global advertising community to share what the organization has learned. Additionally, TED will open up TED.com as an incubation platform for testing and launching great creative.
TED solicited entries for this challenge via a channel on YouTube.com. The judging system for Ads Worth Spreading was hosted by AICP (Association of Independent Commercial Producers) and Zester. Ads Worth Spreading was also supported by Contagious Magazine, 4A's, IAB, IAA, Art Directors Club, and the Advertising Club of New York.
Beauty and lifestyle magazines continue to lead the pack among ad gainers. Condé Nast owns three of five magazines that gained in February issue ad pages, reports Access Intelligence. Its minOnline boxscore tracks ad page gains and losses across 150 titles.
Comparing February 2012 to February 2011, beauty-and-fashion title Allure jumped 32.21 pages, for a 56.67% gain. Teen Vogue was second, with 15.95 pages and a 34.78% gain, and Self rounded out the top five with 19.96% gain.
Traditional Home, a Meredith property, was third with a 34.87% gain, and 13.43 pages. Publisher Beth Brenner cited an “editorial refresh,” with more eye-friendly design and larger product shots.
The one lone cultural publication among those lifestyle magazines—also the only independent publication—was Smithsonian, published by The Smithsonian Institution, which gained 41.22%. New advertisers to the February Obsession-themed include Norway Tourism, Mexico Tourism and Advair, with advertisers like Toyota Prius, Celebrex and Prudential returning. Group publisher Jennifer Hicks believes new editor Michael Caruso, former Los Angeles magazine editor, has generated enthusiasm among advertisers. Smithsonian is also the only magazine with a strong male readership, at 48%.
These said Access Intelligence were exceptions to an “overall dismal February,” with only 53 of 150 titles registering gains, and a cumulative loss of -6.56% across all titles.
Travel bimonthly Departures gained 43% in ad pages in 2011, year-over-year (YOY) and rival title Afar gained 110%. That according to minOnline, which has just released iits 2011 boxscore report of bimonthlies. “No matter what is going on with the economy, people are still getting married and traveling,” said minOnline.
Of 22 magazines, Departures led in page difference, gaining 230 pages. Afar was second with 146. Rounding out the top six were Martha Stewart Weddings, Handguns, Weight Watchers and Bridal Guide.
Disposable income drove ad sales at Departures, which is published by American Express. Editor in Chief Richard Story attributed the growth, in part, to “the strength of the luxury economic resurgence.” Departures attracted new advertisers lilke Barneys, Christian Dior and Versace in 2011.
Content drove gains at Martha Stewart Weddings, said Publisher Amy Wilkins, who credited editor-in-chief Elizabeth Graves and editorial director Darcy Miller. The book plans its first-ever special issue devoted to real weddings in 2012, versus the usually staged pictorials.
Market shifts helped Handguns to its 52% page gain. Publisher Chris Agnes noted a strong market environment “spurred by steady growth in self-defense handgun sales.” The FBI fielded about 16.5 million background checks from firearms sellers in 2011, up 15%, according to a Reuters story.
The bimonthly list is in step with industry-wide figures for 2011. Luxury apparel monthlies and bimonthlies gained 11% in ad pages in 2011, while luxury monthlies Architectural Digest gained 9.1%, and Power & MotorYacht climbed 24.9%.
About this chart: Source: HispanicMagazineMonitor, June 2011. Media Economics Group provides competitive intelligence on magazine and online advertising that is targeted to the Hispanic and African-American markets.
Television and radio broadcasting contributes to 7% of the nation's GDP, or $1.17 trillion annually, according to an NAB-commissioned study conducted by Woods & Poole Economics, with support from BIA/Kelsey. The report, “An Analysis of the Importance of Commercial Local Radio and Television Broadcasting to the United States Economy,” which was released on Tuesday, also finds 2.52 million jobs attributable to the industry every year.
The study focused on local commercial broadcast radio and television stations including locally owned and operated commercial stations, affiliate stations and independent stations. Noncommercial radio and TV stations and the operations of over-the-air broadcast networks were not part of the analysis, except for networks' owned-and-operated local television stations.
The study calculated that the local broadcast industry employs over 300,000 people directly and in support industries, creating $49.32 billion in GDP annually. Television accounts for almost 187,000 of these jobs, as well as over $30 billion in GDP, while radio employs 118,000 people and contributes a little over $18 billion to the GDP.
The study also examined the associated economic effects of direct employment by local broadcasting has through the consumption of goods and services by industry employees, and concluded that local commercial broadcasting generates almost $135 billion in additional GDP and more than 833,000 jobs nationwide.
The study estimates advertising on local broadcast television and radio stations as a stimulant generating an additional $986 billion in economic activity and supporting 1.38 million jobs.
About this chart: Source: Newspaper Association of America. NAA makes every effort to have the most complete and up-to-date information available on the website at all times. New and revised figures for this data are posted approximately 3 months after the end of the quarter.
About this chart: Source: Kantar Media. Kantar Media analyzes print, radio, TV, internet, cinema, mobile, social media, and outdoor worldwide, and tracks more than 3 million brands.
About this chart: Source: Kantar Media. Kantar Media analyzes print, radio, TV, internet, cinema, mobile, social media, and outdoor worldwide, and tracks more than 3 million brands. The ten largest magazine advertisers invested a total of $834.5 million in the medium, up 3.4 percent. They accounted for a 17.5 percent share of all magazine ad dollars. CPG marketers claimed five of the ten spots on this list.