Friday, March 12, 2010

Multicultural Ad Spending Declines in 2009, but Less than Overall Ad Market

Spending on Spanish Language and African-American media declined 4.7% and 7.3%, respectively, in 2009, according to figures released today by The Nielsen Company. The declines are consistent with the trend in overall advertising, although the drops aren’t as deep. Last month, Nielsen reported that ad spending fell nine percent in 2009, despite significant increases in Cable TV.

Spanish Language Ad Spending
Nielsen found that Spanish Language advertising was down 4.7% in the U.S. last year. A total of $5.4 billion was spent on all Spanish Language media in 2009, down almost $270 million from the previous year. The slide was paced by significant declines in National Magazine and Local Newspaper advertising, which were down 38% and 25%, respectively.

The decreases in print media were offset by a 32% increase in Spanish Language Cable advertising. Nielsen found that 19 of the top 20 advertisers in the medium increased their ad spends year over year.

Spot TV was the top cash generator for Spanish Language media in 2009 with an estimated $1.4 billion in ad sales, down 10% compared to the previous year.

Spanish Language Media
Media Type2008-$ (000)2009-$ (000)% Change
Local Magazine988.20.0-100.0%
Local Newspaper103,144.677,059.5-25.3%
National Magazine182,096.7112,558.7-38.2%
Spanish Language Cable TV323,065.0426,959.432.2%
Spanish Language Network TV2,982,158.32,866,092.5-3.9%
Spot Radio567,233.9562,481.3-0.8%
Spot TV1,559,307.81,402,754.4-10.0%
Total5,717,994.55,447,905.7-4.7%
Source: The Nielsen Company

African-American Ad Spending
Spending on African-American media saw a similar decline of 7.3% in 2009. The decline was paced by decreased spending in Network TV (-72%) and National Magazines (-33%).

Increased spending on Cable TV helped balance out the losses. Advertisers spent 35% more on African-American Cable in 2009, thanks to added spending by each one of the top 20 advertisers in the category.

Spot Radio earned the most revenue among African-American media in 2009. Advertisers spent $748 million on the medium last year, almost 10% less than in 2008.

African American Media
Media Type2008 $ (000)2009 $ (000)% Change
Cable TV539,193.6728,440.835.1%
National Magazine530,766.1353,806.7-33.3%
Spot Radio826,824.5747,794.7-9.6%
Network TV95,524.826,626.8-72.1%
Syndicated TV110,638.492,935.8-16.0%
Total2,102,947.51,949,604.8-7.3%
Source: The Nielsen Company

Product Categories
The top spending product category for both Spanish Language and African-American media was Quick Service Restaurants. Advertisers within the category spent $335 million on Spanish Language media and $87 million on African-American media. McDonald’s was the top fast food advertiser in both media segments.

The Automotive category was the next highest spender in both multicultural media. Spending in Spanish Language was down 39% in 2009, paced by double-digit percent losses by each of the top five auto advertisers. Spending by the auto industry in African-American media was down 18% year over year.

The category showing the most growth among the top 10 Spanish Language advertisers was Satellite TV providers. Advertisers in this category upped their ad spends 77% in 2009, as satellite TV companies made the pitch for their services in the run up to the DTV transition in June 2009. According to Nielsen data, a larger percentage of Hispanic households were not ready for the transition than non-Hispanic households at the end of 2008.

Spanish Language Categories
Product Category2008-$ (000)2009-$ (000)% Change
RESTAURANT-QUICK SVC293,652.9334,593.013.9%
AUTOMOTIVE528,577.9323,230.0-38.8%
TELEPH SVCS-WIRELESS316,808.3305,463.7-3.6%
STORE-DEPT307,345.4294,420.8-4.2%
SATELLITE COMM SVCS134,658.1238,744.677.3%
DIR RESP PROD220,632.3237,227.67.5%
BEER165,045.9171,677.74.0%
LEGAL SVCS89,684.3123,847.038.1%
MOTION PICTURE112,015.099,846.5-10.9%
INSURANCE-AUTO144,305.098,084.0-32.0%
Source: The Nielsen Company

Insurance companies showed the most growth among the top 10 African-American media spenders. General Insurance and Car Insurance categories placed 8th and 9th after increases of 29% and 24%, respectively. The Motion Picture category showed similar growth, increasing its spend 24% to $72 million.

African American Categories
Product Category2008-$ (000)2009-$ (000)% Change
RESTAURANT-QUICK SVC72,909.686,906.819.2%
AUTOMOTIVE105,005.785,851.1-18.2%
STORE-DEPT76,117.972,234.3-5.1%
MOTION PICTURE58,094.971,937.523.8%
TELEPH SVCS-WIRELESS52,610.650,602.5-3.8%
PHARMACEUTICAL50,542.547,556.1-5.9%
DIR RESP PROD41,810.443,544.94.1%
INSURANCE26,739.234,378.228.6%
INSURANCE-AUTO26,285.032,521.923.7%
CREDIT SVCS23,052.128,204.422.4%
Source: The Nielsen Company


Multicultural Ad Spending Declines in 2009, but Less than Overall Ad Market | Nielsen Wire

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