Ad spending sees solid year-end gains
Out of home posts 3.4 percent gain and radio up 4 percent
March 8, 2013
It will still be a couple weeks before the final ad spending numbers for 2012 are out.
But several media have released their own numbers, and though forecasters kept lowering their outlooks for 2012 as the year went on, it seems advertising made some decent gains by the time the year finished out.
Radio recorded its third straight year of growth, up 1 percent, including a 4 percent fourth-quarter surge fueled by automotive and political.
And out of home grew a robust 4.2 percent, ending the year with its 11th straight quarter of growth.
Both media had strong fourth quarters despite less-than-robust holiday sales, which led to less advertising than many buyers had expected, and worries over the fiscal cliff, which buyers say didn’t end up impacting advertising as much as many had feared.
“Some advertisers may have held back a couple weeks, but in the end did it really affect anything? No,” says Gerri Donini, senior vice president of national buying at RJ Palmer.
In December, buyers told Media Life that some advertisers were spooked by the fiscal cliff, a series of spending cuts slated to take effect in January. The situation was averted by a deal reached in the last days of 2012.
Out of home grew 3.2 percent in fourth quarter. Communications saw the biggest year-to-year gain in the quarter, up 22.2 percent, a big change from earlier in the year, when spending was down.
For the year, political was an important ad spending driver, as it was in radio and television. Government, political and organizations accounted for 30 percent of the 2012 gain in ad spending in out of home, with $319 million spent.
Radio had its best quarter of growth in two years during fourth quarter, with spot up 4 percent and digital growing 11 percent.
Professional services, communications and financial services also had strong fourth quarters, seeing at least 15 percent year-over-year growth.
Some $124 million was spent on political ads on the medium, increasing 15 percent over the $108 million spent during the 2008 campaign.
Looking ahead to 2013, the outlook is good for both out of home and radio. Donini says that despite all the recent hype over sequestration, another series of spending cuts that went into effect last week, the impact on ad spending will be minimal.
“The only thing I think it could impact is government ad spending, such as military recruitment,” she says.
“The army does a lot of recruitment, and so does the Navy. And their budgets are quite a bit down. But they also need fewer servicemen right now, so that might affect it as well.”
A much better midseason for Fox
For Bill O’Reilly, steady through it all
Real identity of naked Buckingham guy
‘Dig,’ off we go to Armageddon, again
Tell us your thoughts on Hispanic media
When is a spinoff one too many?
Media people to Nielsen: Some changes, please
Spike upfront: We’re gender-neutral now
Cable overnights: ‘Saul’ slides again
The word: Shakeup coming at NBC News
Tweet Yo Self: ‘Parks’ finale scores on Twitter
A decline for Fox’s ‘The Following’
This week’s cable ratings
- Zenaida Torres becomes group account director at Lowe Campbell Ewald
- Christine Perez-O'Rourke becomes PR manager at Big Spaceship
- Andrew Clurman rises to CEO at Active Interest Media
- Chris Rantamaki becomes SVP of production at Discovery
- Stephen Colvin becomes president and COO at Robb Report Digital
- Lucy Gilmour rises to photo director at The Wall Street Journal
- Josh London becomes CMO at IDG Communications
- Bill Gedwill becomes VP of business development at Kvantum
- Jeff Zeleny becomes senior Washington correspondent at CNN
- Dermot Mulroney joins Hallmark's 'Northpole: Open For Christmas'
- Jillian Michaels starring in Spike TV's 'Sweat Inc.'
- Hemmings Motor News founder Ernie Hemmings dies at 88
This week’s cable ratings
This week’s broadcast ratings
This week’s top movies, songs and books
This week’s daypart ratings
This month’s new media traffic data
This week’s younger viewer ratings
Remote media buyer available for all markets
Offline media buyer job in San Francisco
Spot media buyer wanted in Greenville, S.C.
Communications strategist/media planner in Chicago
Digital campaign and analytics manager