Winter Olympics Boost Q1 Ad Spending

 
“The Winter Olympics delivered its expected windfall in the first quarter, adding about $600 million of incremental ad spending to the marketplace. But the nature of the event is that this money is narrowly distributed and doesn’t benefit all sectors of the market,” said Jon Swallen, Chief Research Officer at Kantar Media North America. “Subtracting the

Olympics’ contribution, the growth rate for remaining expenditures was just under four percent.”

Every measured type of television had expenditure increases in Q1. Network TV increased 14.5 percent with about one-half of this growth coming from the Winter Olympics. Higher spending on the NFL playoffs and Super Bowl also contributed to the gains.

The Olympics also gave a boost to Spot TV expenditures which rose 7.0 percent during Q1. In addition, an early rush of political spending for key races in Alaska, North Carolina and Texas were a reminder that as November elections draw closer, political money will increasingly define and drive the spot TV marketplace.

Cable TV expenditures increased 6.2 percent in Q1 on higher spending from a broad range of core categories. Spanish Language TV rose 18.0 percent in the period, primarily from gains at broadcast networks. Syndication TV spending was up 3.2 percent and received a hefty boost from pharmaceutical, insurance and restaurant marketers.

Internet display expenditures grew 13.0 percent in the first quarter as financial, retail and insurance marketers raised their budgets. Outdoor media registered a 2.8 percent increase on stronger spending within the Local Service and Retail categories.

 

Consumer Magazine print expenditures fell 2.0 percent and the key metric of ad pages declined more than five percent.

The bottom line totals were skewed by severe reductions from the two largest magazine advertisers (Procter & Gamble and L’Oreal) who account for more than 10 percent of total spending. Across the entire industry the number of continuing magazine advertisers that lifted spending outpaced declines by a 3:2 ratio. Ad expenditures in Sunday Magazines dropped 5.6 percent on weaker spending from pharmaceutical, financial and travel marketers.

 

Local Newspaper advertising decreased 5.8 percent in Q1 on commensurate declines in ad space and continuing cutbacks by local auto dealers and retailers. National Newspapers finished the period with spending unchanged compared to a year ago.

Results for Radio media were mixed. National Spot Radio was up 6.7 percent and this was driven by a larger number of brands using the medium. Local Radio, which reflects English language stations, had a spending decline of 4.7 percent and Hispanic Local Radio stations were down 10.8 percent. Both of these segments were hit by lower spending from the retail, auto dealer and restaurant categories.