http://online.wsj.com/article/BT-CO-20090506-715112.html
Norwood Promotional Products Inc., which sells backpacks, golf balls and coffee cups emblazoned with corporate logos and advertising messages, sought Chapter 11 protection after the economic downturn slashed orders for its products and kept it from refinancing its debt.
The Indianapolis company, which claims to be the second-largest supplier of promotional products in the U.S., on Tuesday filed its Chapter 11 petition with the U.S. Bankruptcy Court in Wilmington, Del., with a deal in hand to sell its business.
They've agreed to sell their operations to Aurora Resurgence, a California-based investment firm.
http://www.ibtimes.com/prnews/20090509/top-supplier-norwood-promotional-products-files-for-chapter-11-bankruptcy.htm
Tuesday, May 26, 2009
Ascent Media tames Beast
http://www.variety.com/article/VR1118003912.html?categoryid=1009&cs=1
In a further sign of recession-driven consolidation in post-production, high-end boutique post house Beast has agreed to be acquired by conglom Ascent Media.
Beast, which mainly offers editorial services, has facilities in New York; Santa Monica; Austin, Texas; and abroad.
Current management at Beast will remain in place. Co-founder Igor Kovalik and managing partner Valerie Petrusson will oversee Beast for Ascent.
Ascent has been acquiring talent and companies to expand its presence in commercial editorial.
"The commercial market will bounce back because this is the engine by which things are sold and marketed in this country," said Ascent CEO Jose Royo. "We want to be well positioned for the upturn when it happens."
The acquisition of Beast brings Ascent into Austin while bolstering the conglom's presence in New York and Los Angeles. Ascent's recent hiring of top talent from Mad River Post put it in Detroit as well. and it has also acquired assets in San Francisco.
For its part, Ascent is looking to Beast as a feeder for its operations.
In a further sign of recession-driven consolidation in post-production, high-end boutique post house Beast has agreed to be acquired by conglom Ascent Media.
Beast, which mainly offers editorial services, has facilities in New York; Santa Monica; Austin, Texas; and abroad.
Current management at Beast will remain in place. Co-founder Igor Kovalik and managing partner Valerie Petrusson will oversee Beast for Ascent.
Ascent has been acquiring talent and companies to expand its presence in commercial editorial.
"The commercial market will bounce back because this is the engine by which things are sold and marketed in this country," said Ascent CEO Jose Royo. "We want to be well positioned for the upturn when it happens."
The acquisition of Beast brings Ascent into Austin while bolstering the conglom's presence in New York and Los Angeles. Ascent's recent hiring of top talent from Mad River Post put it in Detroit as well. and it has also acquired assets in San Francisco.
For its part, Ascent is looking to Beast as a feeder for its operations.
Wednesday, May 20, 2009
Merkle acquires direct mail company CognitiveDATA
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090519/FREE/905199997/1078/newsletter011
Database marketing agency Merkle has acquired CognitiveDATA, a direct and database marketing services company.
Little Rock, Ark.-based CognitiveDATA primarily serves insurance providers, nonprofits, financial services companies and retailers in ensuring the accuracy of direct-mail files. It will continue as a separate brand and operate as a wholly owned subsidiary of Merkle.
Merkle and CognitiveDATA previously have partnered on initiatives for such organizations as DirecTV, GEICO and the Arthritis Foundation.
Financial terms of the deal were not disclosed.
Database marketing agency Merkle has acquired CognitiveDATA, a direct and database marketing services company.
Little Rock, Ark.-based CognitiveDATA primarily serves insurance providers, nonprofits, financial services companies and retailers in ensuring the accuracy of direct-mail files. It will continue as a separate brand and operate as a wholly owned subsidiary of Merkle.
Merkle and CognitiveDATA previously have partnered on initiatives for such organizations as DirecTV, GEICO and the Arthritis Foundation.
Financial terms of the deal were not disclosed.
Brand Advertising Poised to Rebound?
http://adage.com/article?article_id=136629
Some of the results of a survey that the ANA plans to release next week were discussed at the event today, and among the findings was that 74% of senior marketers who responded believe "brand equity" is very important to their company's success. Of course, that hasn't stopped many marketers from paring back their brand-advertising budgets in the past year and focusing most of their efforts on cost-cutting and promotion.
But now, encouraged by the idea that consumer spending might have bottomed out -- or even be starting to trend ever so slightly upward -- some marketers said they would be returning to brand advertising soon.
Some of the results of a survey that the ANA plans to release next week were discussed at the event today, and among the findings was that 74% of senior marketers who responded believe "brand equity" is very important to their company's success. Of course, that hasn't stopped many marketers from paring back their brand-advertising budgets in the past year and focusing most of their efforts on cost-cutting and promotion.
But now, encouraged by the idea that consumer spending might have bottomed out -- or even be starting to trend ever so slightly upward -- some marketers said they would be returning to brand advertising soon.
Slump Socks Ad Industry's Small End
http://online.wsj.com/article/SB124267708741231623.html
The global recession is roughing up smaller advertising companies even more than their bigger rivals, a lesson being learned by two companies partially owned by French industrialist Vincent Bolloré.
Mr. Bolloré holds about 30% of media buyer Aegis Group PLC, which on Monday reported that first-quarter revenue fell 12%, excluding the effects of acquisitions, divestments and currency shifts.
Late Friday, Havas SA, where Mr. Bolloré holds a 32.9% stake and is also chairman, reported an 8.4% drop in first-quarter revenue, by the same measure.
At both companies, the problem is the same. Along with the rest of the industry, each has taken a hit as the recession has savaged corporate ad spending. At Aegis and Havas, however, the pain has been compounded by losses of key accounts and the heavy reliance of each on a single business in an industry led by more-diversified global giants.
"Small players get hit harder because they're more committed to a smaller number of clients," said RBS analyst Justin Diddams.
The global recession is roughing up smaller advertising companies even more than their bigger rivals, a lesson being learned by two companies partially owned by French industrialist Vincent Bolloré.
Mr. Bolloré holds about 30% of media buyer Aegis Group PLC, which on Monday reported that first-quarter revenue fell 12%, excluding the effects of acquisitions, divestments and currency shifts.
Late Friday, Havas SA, where Mr. Bolloré holds a 32.9% stake and is also chairman, reported an 8.4% drop in first-quarter revenue, by the same measure.
At both companies, the problem is the same. Along with the rest of the industry, each has taken a hit as the recession has savaged corporate ad spending. At Aegis and Havas, however, the pain has been compounded by losses of key accounts and the heavy reliance of each on a single business in an industry led by more-diversified global giants.
"Small players get hit harder because they're more committed to a smaller number of clients," said RBS analyst Justin Diddams.
Winsper Takes Stake in I-Shop Radium
http://www.adweek.com/aw/content_display/news/agency/e3i381632271e5e8b966cb744ab3ca4829b
BOSTON Independent agency Winsper today said it has taken a minority stake in i-shop Raduim, a company that specializes in search marketing and social media.
Radium is headquartered in New York with a satellite office at Winsper's office Boston; its founder, Rich Angstadt, is a former Winsper staffer.
The firms have teamed up before, with Radium supporting Winsper clients such as Quench, Black Cat Lodge and Richardson. On its own, Radium works for accounts like Nuance, Maui Jim Sunglasses and Hylighter, among others.
BOSTON Independent agency Winsper today said it has taken a minority stake in i-shop Raduim, a company that specializes in search marketing and social media.
Radium is headquartered in New York with a satellite office at Winsper's office Boston; its founder, Rich Angstadt, is a former Winsper staffer.
The firms have teamed up before, with Radium supporting Winsper clients such as Quench, Black Cat Lodge and Richardson. On its own, Radium works for accounts like Nuance, Maui Jim Sunglasses and Hylighter, among others.
Taxi arrives in Amsterdam
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20090515_173740_8380
Taxi has opened its first office in Europe after acquiring a majority stake in Amsterdam digital agency Ottonico.
The agency, which officially rebranded as Taxi Europe on May 13, serves clients such as Foot Locker, Heineken (a Taxi client in Canada), ING, KPN Royal Dutch Telecom and telecommunications brands Hi and Telefort.
Taxi’s co-founder and chair Paul Lavoie will add the title of chief creative officer, Europe to his business card. Both he and Taxi co-founder Jane Hope will travel between Amsterdam and Taxi New York as the company integration continues over the coming months.
Ottonico’s co-founders Eric Verhage and Maarten van Huijstee, both former Heineken employees, assume the roles of general manager and executive creative director, respectively.
“Our creative visions are a natural fit,” said van Huijstee, in a statement. “We share the belief that there is no new and no old media. Every channel can deliver results when the choice is rooted in consumer insight.”
Lavoie expects several existing Taxi staffers to move to Amsterdam, though he offered no names. However, Ottonico had no design capabilities and did significantly less traditional advertising than the other offices in Taxi’s stable. It’s a safe bet those capabilities will be flown in from North America.
With a current staff of 22, Lavoie estimated Taxi Europe’s staff to reach 35 by the time Ottonico is fully integrated into the network.
Taxi has opened its first office in Europe after acquiring a majority stake in Amsterdam digital agency Ottonico.
The agency, which officially rebranded as Taxi Europe on May 13, serves clients such as Foot Locker, Heineken (a Taxi client in Canada), ING, KPN Royal Dutch Telecom and telecommunications brands Hi and Telefort.
Taxi’s co-founder and chair Paul Lavoie will add the title of chief creative officer, Europe to his business card. Both he and Taxi co-founder Jane Hope will travel between Amsterdam and Taxi New York as the company integration continues over the coming months.
Ottonico’s co-founders Eric Verhage and Maarten van Huijstee, both former Heineken employees, assume the roles of general manager and executive creative director, respectively.
“Our creative visions are a natural fit,” said van Huijstee, in a statement. “We share the belief that there is no new and no old media. Every channel can deliver results when the choice is rooted in consumer insight.”
Lavoie expects several existing Taxi staffers to move to Amsterdam, though he offered no names. However, Ottonico had no design capabilities and did significantly less traditional advertising than the other offices in Taxi’s stable. It’s a safe bet those capabilities will be flown in from North America.
With a current staff of 22, Lavoie estimated Taxi Europe’s staff to reach 35 by the time Ottonico is fully integrated into the network.
Friday, May 8, 2009
—“Characteristics Study: A Look at the Volume and Type of Custom Publications in America,”
http://www.custompublishingcouncil.com/news-industry-article.asp?ID=583
Key Findings in the Characteristics Study:
Circulation Soars:
Circ per issue: The average circulation per issue for custom publications increased from 30,044 in 2007 to 37,340 in 2008.
Circ per title: The average circulation per title per year has increased to 336,060 copies, up from 270,000 in 2007.
Circ volume in the market: The total number of custom publication copies distributed increased 7.4 percent over last year. Since the survey was first conducted in 1999, circulation volume has grown 228.3 percent, from 11.9 billion units to 41.6 billion.
Steady Frequency: The average annual frequency of custom publications remained steady at 9 times per year. Although it is lower than it was at its peak in 2003, frequency is still 42.9% higher than it was in 1999 when this study began.
Movement Toward Newsletters, Online: The use of online publications increased from 18 to 22%. Meanwhile, newsletters retained a slight edge over magazines this year as the preferred publication format.
New Directions in Distribution: 27% of publications on average are now distributed via the Internet. Before 2007, the survey didn’t include Internet distribution as an option. Meanwhile, the USPS continues to be the preferred distribution channel for custom publications, with 55% of titles using the service.
More Pages Per Issue: The average pages per issue for custom publications increased from 22.2 to 23.2. Since 1999, the number of pages per issue has grown 68.1%.
Unique Page Decrease: The total number of unique pages produced in 2008 was 25.8 million, a 9.7% decrease over the previous year. However, since the study began in 1999, unique page volume has expanded, with an average growth rate of 14.7% and an overall growth rate of 207.2%.
Change in Primary Audience: For the sixth year running, titles targeting external audiences exceeded those targeting internal audiences (69% versus 31%).
Presence of Advertisements Decreases: For the third year in a row, the percentage of custom publications using paid advertising decreased by 4%. Also for the third year in a row, the percentage of custom publications carrying no advertisements increased, with 70% of companies reporting no ads in their publications.
Overall money spent on custom publishing is down by 20%. Meanwhile, the number of unique custom titles being published decreased to 123,157, down from 143,000 in 2007. While this represents a sharp change, the results are still 27.9% higher than when this metric was first studied in 1999.
Key Findings in the Characteristics Study:
Circulation Soars:
Circ per issue: The average circulation per issue for custom publications increased from 30,044 in 2007 to 37,340 in 2008.
Circ per title: The average circulation per title per year has increased to 336,060 copies, up from 270,000 in 2007.
Circ volume in the market: The total number of custom publication copies distributed increased 7.4 percent over last year. Since the survey was first conducted in 1999, circulation volume has grown 228.3 percent, from 11.9 billion units to 41.6 billion.
Steady Frequency: The average annual frequency of custom publications remained steady at 9 times per year. Although it is lower than it was at its peak in 2003, frequency is still 42.9% higher than it was in 1999 when this study began.
Movement Toward Newsletters, Online: The use of online publications increased from 18 to 22%. Meanwhile, newsletters retained a slight edge over magazines this year as the preferred publication format.
New Directions in Distribution: 27% of publications on average are now distributed via the Internet. Before 2007, the survey didn’t include Internet distribution as an option. Meanwhile, the USPS continues to be the preferred distribution channel for custom publications, with 55% of titles using the service.
More Pages Per Issue: The average pages per issue for custom publications increased from 22.2 to 23.2. Since 1999, the number of pages per issue has grown 68.1%.
Unique Page Decrease: The total number of unique pages produced in 2008 was 25.8 million, a 9.7% decrease over the previous year. However, since the study began in 1999, unique page volume has expanded, with an average growth rate of 14.7% and an overall growth rate of 207.2%.
Change in Primary Audience: For the sixth year running, titles targeting external audiences exceeded those targeting internal audiences (69% versus 31%).
Presence of Advertisements Decreases: For the third year in a row, the percentage of custom publications using paid advertising decreased by 4%. Also for the third year in a row, the percentage of custom publications carrying no advertisements increased, with 70% of companies reporting no ads in their publications.
Overall money spent on custom publishing is down by 20%. Meanwhile, the number of unique custom titles being published decreased to 123,157, down from 143,000 in 2007. While this represents a sharp change, the results are still 27.9% higher than when this metric was first studied in 1999.
Thursday, May 7, 2009
Online in Troubled Times
http://promomagazine.com/interactivemarketing/0401-digital-media-potential/
respondents to this year's Promo IM poll said they're holding steady on, or making moderate increases in, their use of those “hard numbers” Internet channels. Just over 74% said they will use e-mail marketing this year, a rate very comparable to reporting in 2008 and 2007. The number of respondents sending out e-mail newsletters is up about seven percentage points from last year, to 70.5%. Users of online display ads have bounced back a bit from the popularity dip they saw last year to almost 41% of those surveyed. And online promotions, search optimization, paid search ads and Web-based contests all remained basically at par with their 2008 levels.
For the big jumps in Internet usage, you have to look at the relative newcomers to this year's IM survey. For example, 38.6% of respondents said they will market online through at least one corporate blog this year, up from only 22.8% who did so in 2007, and up more than 11 percentage points from last year.
Promotions in social networks of any description are also set to pick up steam this year. For the previous two years, fewer than one in five respondents told Promo they would make social nets part of their media mix. This year, more than one-third of those polled said their companies or agencies would use those Web communities in their marketing — an increase of more than 100%.
respondents to this year's Promo IM poll said they're holding steady on, or making moderate increases in, their use of those “hard numbers” Internet channels. Just over 74% said they will use e-mail marketing this year, a rate very comparable to reporting in 2008 and 2007. The number of respondents sending out e-mail newsletters is up about seven percentage points from last year, to 70.5%. Users of online display ads have bounced back a bit from the popularity dip they saw last year to almost 41% of those surveyed. And online promotions, search optimization, paid search ads and Web-based contests all remained basically at par with their 2008 levels.
For the big jumps in Internet usage, you have to look at the relative newcomers to this year's IM survey. For example, 38.6% of respondents said they will market online through at least one corporate blog this year, up from only 22.8% who did so in 2007, and up more than 11 percentage points from last year.
Promotions in social networks of any description are also set to pick up steam this year. For the previous two years, fewer than one in five respondents told Promo they would make social nets part of their media mix. This year, more than one-third of those polled said their companies or agencies would use those Web communities in their marketing — an increase of more than 100%.
eMarketer cuts '09 projection, but outlay will still top '08 by 4.5%
eMarketer has revised its Internet ad spending projections, estimating that advertisers will spend $24.5 billion online this year in the U.S.
http://www.adweek.com/aw/content_display/news/agency/e3ice929b594c20ea2e104dffc8d0e82841
http://www.adweek.com/aw/content_display/news/agency/e3ice929b594c20ea2e104dffc8d0e82841
Agency networks report tough Q1
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20090430_170510_7356
Revenues and profits were down between January and March for the international companies that control many of Canada’s largest advertising and media agencies.
Four major holding companies released their first quarter financial reports this week. The sub-prime crisis and the resulting global recession, as well as currency fluctuations, were cited as key factors negatively effecting the bottom lines.
• Interpublic (New York)
Canadian companies: DraftFCB, MacLaren McCann, M2 Universal, Weber Shandwick
Global revenues were US$1.3 billion, down 11% from $1.5 billion in 2008. The company reported a net loss of US$73.9 million versus a loss of US$ 69.7 million in the first quarter of last year. This year’s loss includes US$41.6 million in severance charges.
• Omnicom (New York)
Canadian agencies: BBDO, TBWA, DDB, PHD, Fleishman-Hillard, High Road Communications
Revenues were US$2.8 billion between January and March, down 14% from US$3.2 billion in 2008. Profits were down 21.2%, reaching only US$164.5 million versus US$208.7 million last year.
• Publicis Groupe (Paris)
Canadian agencies: Saatchi & Saatchi, Publicis, Leo Burnett, Zenith Optimedia, Starcom Mediavest
Global revenues were approximately US$1.4 billion (originally reported in Euros). While this reports as a 1.3% increase from last year’s numbers, currency fluctuations since that time resulted in a 4.4% drop in overall organic growth. However, North American revenues increased by 12.9%.
•WPP (London)
Canadian agencies: Grey, Ogilvy & Mather, JWT, Young & Rubicam, Group M companies, Hill & Knowlton, Wunderman
Revenues were down 5.8% “on a like-for-like” basis compared to last year. The drop was attributed to reduced client spending. Global revenue totaled approximately US$2.9 billion (originally reported in Euros).
Toronto-based MDC Partners, which tends to own a smaller percentage of its “partner” agencies such as Zig, Henderson Bas and Crispin Porter + Bogusky, saw a 6.7% decline in organic revenues. On consolidated revenues of US$126.7 million, net income attributable to MDC was only US$29,000—an improvement over the US$3.4 million loss from the same period in 2008.
Cossette, the Quebec City-based network that has agencies across Canada and in the U.S. and Europe, will report its revenues for the first three months of 2009 in May.
Revenues and profits were down between January and March for the international companies that control many of Canada’s largest advertising and media agencies.
Four major holding companies released their first quarter financial reports this week. The sub-prime crisis and the resulting global recession, as well as currency fluctuations, were cited as key factors negatively effecting the bottom lines.
• Interpublic (New York)
Canadian companies: DraftFCB, MacLaren McCann, M2 Universal, Weber Shandwick
Global revenues were US$1.3 billion, down 11% from $1.5 billion in 2008. The company reported a net loss of US$73.9 million versus a loss of US$ 69.7 million in the first quarter of last year. This year’s loss includes US$41.6 million in severance charges.
• Omnicom (New York)
Canadian agencies: BBDO, TBWA, DDB, PHD, Fleishman-Hillard, High Road Communications
Revenues were US$2.8 billion between January and March, down 14% from US$3.2 billion in 2008. Profits were down 21.2%, reaching only US$164.5 million versus US$208.7 million last year.
• Publicis Groupe (Paris)
Canadian agencies: Saatchi & Saatchi, Publicis, Leo Burnett, Zenith Optimedia, Starcom Mediavest
Global revenues were approximately US$1.4 billion (originally reported in Euros). While this reports as a 1.3% increase from last year’s numbers, currency fluctuations since that time resulted in a 4.4% drop in overall organic growth. However, North American revenues increased by 12.9%.
•WPP (London)
Canadian agencies: Grey, Ogilvy & Mather, JWT, Young & Rubicam, Group M companies, Hill & Knowlton, Wunderman
Revenues were down 5.8% “on a like-for-like” basis compared to last year. The drop was attributed to reduced client spending. Global revenue totaled approximately US$2.9 billion (originally reported in Euros).
Toronto-based MDC Partners, which tends to own a smaller percentage of its “partner” agencies such as Zig, Henderson Bas and Crispin Porter + Bogusky, saw a 6.7% decline in organic revenues. On consolidated revenues of US$126.7 million, net income attributable to MDC was only US$29,000—an improvement over the US$3.4 million loss from the same period in 2008.
Cossette, the Quebec City-based network that has agencies across Canada and in the U.S. and Europe, will report its revenues for the first three months of 2009 in May.
Tuesday, May 5, 2009
Maurice Levy: 'We Are Doing Much Better Than Our Competitors'
http://adage.com/agencynews/article?article_id=136347
What sectors will turn around quickest?
Mr. Levy: Digital will continue to grow, and I don't think it will turn negative. If you look, organically we have grown 9.8%, which is a very good number, and even if it is growing slightly it will continue to grow.
I believe the first to go on the up will be creative agencies, simply because there is a need for advertisers to work differently on building their brands and relationships with consumers. Times have changed, and [the marketplace] requires a different kind of approach, so I'm very confident things will start with the creative agencies.
I believe we will touch the lowest point of our industry probably in June or latest in July and start to move to the up trend in August or September. We will then continue to grow, but it will not be sharp growth; it will be more progressive. Real growth will occur somewhere in the 2010 summer time frame.
What sectors will turn around quickest?
Mr. Levy: Digital will continue to grow, and I don't think it will turn negative. If you look, organically we have grown 9.8%, which is a very good number, and even if it is growing slightly it will continue to grow.
I believe the first to go on the up will be creative agencies, simply because there is a need for advertisers to work differently on building their brands and relationships with consumers. Times have changed, and [the marketplace] requires a different kind of approach, so I'm very confident things will start with the creative agencies.
I believe we will touch the lowest point of our industry probably in June or latest in July and start to move to the up trend in August or September. We will then continue to grow, but it will not be sharp growth; it will be more progressive. Real growth will occur somewhere in the 2010 summer time frame.
P&G Gets 5% More Media for $440 Million Less
http://adage.com/article?article_id=136393
Procter & Gamble Co. cut marketing spending more than $440 million globally last quarter, yet still increased media weight or impressions 5%, executives said today, and the company is eyeing more cost concessions from media as the TV upfront nears.
In all, marketing-spending cuts by the world's largest advertiser, including traditional advertising and shopper marketing, amounted to 2.4% of sales, a P&G spokesman said.
That means P&G's marketing cuts last quarter amounted to about 5% of its reported advertising spending for the entire fiscal year that ended last June. If sustained for a full year, last quarter's spending level likely would reduce the company's ad-to-sales ratio to its lowest level in at least 15 years.
Yet because of sharply falling media rates around the world, the company actually increased media weight about 5%, P&G Chief Financial Officer Jon Moeller said on an earnings conference call today.
Procter & Gamble Co. cut marketing spending more than $440 million globally last quarter, yet still increased media weight or impressions 5%, executives said today, and the company is eyeing more cost concessions from media as the TV upfront nears.
In all, marketing-spending cuts by the world's largest advertiser, including traditional advertising and shopper marketing, amounted to 2.4% of sales, a P&G spokesman said.
That means P&G's marketing cuts last quarter amounted to about 5% of its reported advertising spending for the entire fiscal year that ended last June. If sustained for a full year, last quarter's spending level likely would reduce the company's ad-to-sales ratio to its lowest level in at least 15 years.
Yet because of sharply falling media rates around the world, the company actually increased media weight about 5%, P&G Chief Financial Officer Jon Moeller said on an earnings conference call today.
Decline in Ad Spending Quickens Pace at 9.2%
http://online.wsj.com/article/SB124148609257185819.html
In a sign that marketers have begun to deepen their cutbacks, TNS Media Intelligence, an ad-tracking firm owned by WPP PLC, reported Monday that ad spending in the fourth quarter fell 9.2% from a year earlier.
The fourth-quarter decline was more than twice as steep as the 4.1% drop for 2008 as a whole, when ad spending totaled $141.7 billion.
Preliminary data indicate that spending is continuing to shrink sharply this year, TNS said.
Auto advertisers, the biggest category of ad spenders in the U.S., cut their ad spending by $2.3 billion, or 15%, last year to $12.8 billion amid a slump in global auto sales. Dealers slashed spending more aggressively than manufacturers, and the reductions accelerated in the fourth quarter.
The nation's largest advertiser, Procter & Gamble Co., cut spending 7% in 2008 to $3.2 billion. P&G declined to comment on the TNS figure. "We are going to continue to focus on supporting our brands appropriately with a marketing mix," said Martha Depenbrock, a P&G spokeswoman. "Our objective is to maintain or increase our media weight, but at lower costs."
Other significant reductions came from the telecommunications sector and direct-response and miscellaneous retail categories, which doesn't include department stores or home-furnishing and appliance stores.
Despite turmoil in the financial-services industry, its ad spending remained relatively steady at $9.6 billion in 2008, down just 0.3% from 2007, as stronger spending by banks balanced cuts by credit-card companies and consumer lenders.
Registering a significant increase in ad spending were restaurants, which were spurred on by increased competition, and the food-and-candy category, as manufactures attempted to protect their brands against competition from generic and private-label rivals.
In a sign that marketers have begun to deepen their cutbacks, TNS Media Intelligence, an ad-tracking firm owned by WPP PLC, reported Monday that ad spending in the fourth quarter fell 9.2% from a year earlier.
The fourth-quarter decline was more than twice as steep as the 4.1% drop for 2008 as a whole, when ad spending totaled $141.7 billion.
Preliminary data indicate that spending is continuing to shrink sharply this year, TNS said.
Auto advertisers, the biggest category of ad spenders in the U.S., cut their ad spending by $2.3 billion, or 15%, last year to $12.8 billion amid a slump in global auto sales. Dealers slashed spending more aggressively than manufacturers, and the reductions accelerated in the fourth quarter.
The nation's largest advertiser, Procter & Gamble Co., cut spending 7% in 2008 to $3.2 billion. P&G declined to comment on the TNS figure. "We are going to continue to focus on supporting our brands appropriately with a marketing mix," said Martha Depenbrock, a P&G spokeswoman. "Our objective is to maintain or increase our media weight, but at lower costs."
Other significant reductions came from the telecommunications sector and direct-response and miscellaneous retail categories, which doesn't include department stores or home-furnishing and appliance stores.
Despite turmoil in the financial-services industry, its ad spending remained relatively steady at $9.6 billion in 2008, down just 0.3% from 2007, as stronger spending by banks balanced cuts by credit-card companies and consumer lenders.
Registering a significant increase in ad spending were restaurants, which were spurred on by increased competition, and the food-and-candy category, as manufactures attempted to protect their brands against competition from generic and private-label rivals.
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