US consumer electronics shipments to generate $171 bln in 2009

The consumer electronics industry is projected to generate $171 bln in US shipment revenues in 2009, according to Consumer Electronics Association. CEA’s estimate of final shipment revenues for 2008 showed the industry reached a new high of $172 bln, an increase of 5.4% over 2007. In 2009, overall, CEA projects that domestic shipment revenues will essentially remain flat at $171 bln, a decrease of 0.6% over 2008. The primary revenue driver for the industry continues to be digital TV displays, representing 15% of total industry shipment dollars. As the transition to digital television nears, unit shipments of DTVs will approach 35 mln in 2009, an increase of nearly 6% over 2008 shipments. LCD displays remain the top choice among consumers, representing 77% of total DTV units. Blu-ray players are expected to see major growth in 2009. With more content, new products and lower prices, Blu-Ray revenues are projected to surpass $1.2 bln.

Spending by largest ad categories in Q1-Q3 2008

Product Category Q1-Q3 2007 Q1-Q3 2008 Growth
Automotive
(Factory & Dealer Assoc.)
8,505.2 7,857.5 -8%
Pharmaceutical 3,855.3 3,682.1 -4%
Auto Dealerships – Local 3,422.9 3,327.1 -3%
Quick Service Restaurant 2,929.6 3,258.1 11%
Motion Picture 2,665.8 2,683.2 1%
Wireless Telephone Services 2,663.7 2,675.8 0%
Department Store 2,432.4 2,615.7 8%
Direct Response Product 1,657.6 2,110.4 27%
Restaurant 1,225.1 1,334.6 9%
Furniture Stores 1,189.2 1,186.7 0%
Top 10 Product Categories 30,546.9 30,731.3 1%
Source: Nielsen

LCD TV revenues to fall 16% in 2009

DisplaySearch forecast LCD television revenues would fall 16% YTY to $64 bln in 2009, with total TV revenues expected to decline 18% to $88 bln. For 2009, DisplaySearch predicts the LCD TV market will grow 17% to 119.9 mln units, 11.5 mln units less than previously forecast.

Internet ad spending by top companies for Q1-Q3 2008

Parent Company Q1-Q3 2007 Q1-Q3 2008 Growth
Procter & Gamble Co. 2,526.0 2,342.3 -7%
General Motors Corp. 1,730.4 1,659.6 -4%
AT&T Inc. 1,351.1 1,317.6 -2%
Verizon Communications Inc. 1,018.8 1,125.6 10%
Toyota Motor Corp. 1,246.8 1,194.1 -4%
Ford Motor Co. 1,452.0 1,112.9 -23%
Johnson & Johnson 1,005.2 1,059.1 5%
Time Warner Inc. 983.9 878.2 -11%
General Electric Co. 680.3 807.9 19%
PepsiCo Inc. 749.5 730.5 -3%
Total Top 10 12,743.8 12,227.8 -4%
Source: Nielsen

Worldwide IT spending will grow 2.6% in 2009

Worldwide IT spending will grow 2.6% YTY in 2009, down from IDC’s pre-crisis forecast of 5.9% growth. In the United States, IT spending growth is expected to be 0.9% in 2009, according to IDC. IDC expects IT spending to make a full recovery by the end of the forecast period with growth rates approaching 6.0% in 2012. IDC estimates that more than $300 bln in industry revenues will have been lost due to slower spending over the next four years. IDC lowered the forecast for worldwide GDP growth in 2009 to 0.3%, which is 1.5% lower than the current forecast and worse than any year since World War II. This produced a forecast of 0.1% growth in worldwide IT spending in 2009 with negative growth in the United States, Western Europe, and Japan.

Where consumers spend their money online – video games grew 60% in one year

Product Category Growth, YTY
Total Retail Category (Excludes Travel) 6%
Video Games, Consoles & Accessories 60%
Furniture, Appliances & Equipment 52%
Sport & Fitness 40%
Event Tickets 18%
Flowers, Greetings & Misc. Gifts 14%
Home & Garden 6%
Consumer Electronics (excluding PC Peripherals) 1%
Computers, Peripherals & PDAs 0%
Apparel & Accessories -2%
Toys & Hobbies -3%
Jewelry & Watches -11%
Music, Movies & Videos -29%
Source: comScore

65% of Americans would prefer cash to gifts for 2008 holidays

65% of Americans would prefer to receive $100 in cash, instead of a specific present or a gift card of the same value. This result is up nine points from Western Union’s first survey, fielded in mid-September 2008. 53% of those who would prefer cash would use that money on basic living expenses such as gas, groceries and bills. Only 14% would spend it on a treat for themselves. 79% of Americans believe cash is a good gift because people can use it to get what they really want. There has been a dramatic drop in the number of respondents who plan to give gift cards for services such as a manicure or a pre-paid phone card. Two months ago that figure was 40%, but now the number is 30%.

62% of those with household incomes of less than $50,000 are likely to give cash. 53% of those with more than $50,000 in household income are likely to give cash. 65% of Americans said they often end up spending more on gifts than they had planned to spend.