Ad Spend Healthy – Product Placement Growing

One of my favourite times of year is when the aggregate numbers are released in terms of ad spends. Nielsen Monitor-Plus has just released some numbers regarding advertising spend in the US, the impact on TV, some of the top advertisers and the occurrences of product placement from some of the top brands. This is important when planning Canadian ad spends, and more important when looking at local ad spends. I am a strong believer that the US is a good indicator of trends in terms of advertising and as a local business we need to be aware of where the big boys are spending their money. This is not to say that we follow the steps of the large advertisers, however, one key indicator from Nielsen is that if Internet spending is on a rise and if your local business still has not established its local Internet marketing strategy, it will cost more in the long run as you will be playing catch-up to other local businesses in your market.

But, back to the numbers from Nielsen, here is a summary of highlights:

Advertising spend for the first half of 2005, reported across 14 medias was $59.5 billion up 5.7 percent from the previous year comparison.

Breakdown by media:

Spanish-language TV – 15% growth
TV – 15% growth
Cable TV – 13%
Internet – 12.6%
Local Magazines – 8.7%
National Magazines – almost 8%
Outdoor – 7%
Network TV – 5%
B2B Magazines – 2.7%
Local Newspapers – 1.8%
Coupons – 0.4%

Top 10 Advertisers
January – June 2005

First Half 2005
($ Mil)
‘04 vs. ’05 % Change

General Motors Corp.
$1,766
14.2%

Procter & Gamble Co.
$1,390
-3.9%

Ford Motor Co.
$1,191
10.5%

Johnson & Johnson
$842
24.2%

Time Warner Inc.
$832
14.7%

DaimlerChrysler AG
$826
-7.8%

Altria Group
$707
20%

Walt Disney Co.
$677
-6.1%

PepsiCo Inc.
$668
24%

SBC Communications
$626
0.9%

Total
$9,526
7.7%

Source: Nielsen Monitor-Plus
Note: Automotive Advertisers reflects Factory and Dealer Association spending
Based on spending estimates in the following media: Network TV, Cable TV, Spot TV, Syndicated TV, Hispanic TV, Nat’l/Local Magazine, Network/Spot Radio, Outdoor, FSI (CPGs only), Nat’l/Local Newspapers (display ads only), Nat’l/Local Sunday Supplements

Top 10 Product Categories
January – June 2005

First Half 2005
($ Mil)
‘04 vs. ‘05
% Change

Automotive: Factory & Dealer Assoc.
$6,725
6.0%

Automotive Dealerships-Local
$2,546
1.0%

Prescription Drugs/Pharmaceutical
$2,369
0.4%

Restaurants-Quick Service
$1,952
11.8%

Motion Picture
$1,744
-3.0%

Department Stores
$1,623
-3.1%

Telephone Services-Wireless
$1,437
18.2%

Direct Response Products
$1,024
8.5%

Credit Card Services
$ 848
24.5%

Restaurants
$ 772
14.6%

Total
$21,041
5.4%

Source: Nielsen Monitor-Plus
Based on spending estimates in the following media: Network TV, Cable TV, Spot TV, Syndicated TV, Hispanic TV, Nat’l/Local Magazine, Network/Spot Radio, Outdoor, FSI (CPGs only), Nat’l/Local Newspapers (display ads only), Nat’l/Local Sunday Supplements

Product Placement

Continues to be a large part of advertising. Nielsen tracked 11,455 product placement occurences in the top 10 brands for the first half of 2005.

Top 10 Brands: Product Placement

First Half 2005

Brand
Total # Occurrences

Coca-Cola Classic Reg Soft Drink
2,775

Everlast Apparel
1,648

Everlast Sporting Equip
1,372

Gatorade Drinks-Isotonic
1,172

Toyota Autos & Trucks
815

Nike Apparel
789

Sierra Mist Reg Soft Drink
785

Home Depot
730

Foot Locker
699

Boston Red Sox Baseball Team
670

Total
11,455

Source: Place*Views, Nielsen Product Placement service

For more information on Nielsen Monitor-Plus, please visit their website.

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