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May24
TV Ad Spending Down 5.3 Percent in First Quarter

The ad revenue for broadcast TV was down by 5.3 percent in the first quarter, finishing up at a total of $11.8 billion.

Network television revenue fell by 6.5 percent during the quarter to end up with $6.7 billion. Syndication also struggled falling by 5.9 percent. Local television performed strong, although still losing 3 percent in the period.

Leading the advertising decline was the automotive industry, as manufacturers decreased spending by 8.9 percent. For auto dealers it wasn't as bad as they dropped spending by 2.7 percent, although big national dealers were off by a lot with General Motors (GM) down by 13.8 percent, Ford Motors Dealers Association Television%20Bureau%20of%20Advertising.jpgplunged by 37.5 percent and DaimlerChrysler ended down by 23.3 percent.

Countering the auto trend was Nissan which ended with TV ad spending up by 19.7 percent.

Other categories that dropped big were the combination of real-estate and insurance with was down by 14.9 percent, while  leisure-time activities ad spending dropped by 12.8 percent.

Some of the companies that increased their ad spending in a big way were Verizon Communications (VZ) which increased by 62.3 percent, National Amusements exploded by 130.1 percent and Timer Warner (TWX) was also up a lot at 44.7 percent.

A part of, but not all of the reason for the decrease, is connected to lower political spending and not being an Olympic year. The other is of course the condition of the auto and real estate markets.


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