During the first nine months of 2007, the top 10 advertisers spent a combined total of $13.3 bln in measured media, a reduction of 2.3% from in 2006. The pace of spending for this select group picked up in Q3 2007, advancing by 3.1%. Extending outwards to the top 50 marketers, a more diversified group representing one-third of the measured ad economy, expenditures were down 2.2% year-to-date, to $34.3 bln. Outside the top 50, the segment which has been principally responsible for industry growth in recent years, spending rose 1.4% versus in 2006. Procter & Gamble maintained its position as the largest advertiser with $2,466.5 mln in spending, up 1.3% from in 2006. General Motors had the largest reduction among the top ten as its expenditures fell 18.0% to $1,425.8 bln. However, Q3 2007 spending was up 2.0% versus in 2006, the first quarterly increase for the automaker in over two years.
Telecommunication companies kept their grip on three of the top ten spots. AT&T expenditures were off 5.1% to $1,663.4 mln. The reductions were mostly in corporate promotion messaging as opposed to branded product campaigns. Higher spending behind core wireless businesses helped lift the total outlays at Verizon Communications (up 5.8%, to $1,514.1 mln) and Sprint Nextel (up 12.4%, to $997.8 mln). On the other side of the ledger, top diversified media companies each trimmed their measured ad spending. At Time Warner, scaled-back marketing support for the America On Line ISP service more than offset increased budgets at the movie studios. Total expenditures contracted by 2.2%, to $1,197.9 mln. Spending at Walt Disney fell by 6.0%, to $948.4 mln and at News Corp. by 5.7% to $851.7 mln on lower levels of advertising for their TV networks and motion picture releases.
|Top Ten US Advertisers: Q1-Q3 2007 vs. Q1-Q3 2006, mln.|
|COMPANY||Q1-Q3 2007||Q1-Q3 2006||Growth|
|PROCTER & GAMBLE||$2,466.5||$2,435.8||1.3%|
|FORD MOTOR CO||$1,221.7||$1,186.6||3.0%|
|TIME WARNER INC||$1,197.9||$1,224.6||-2.2%|
|JOHNSON & JOHNSON||$1,020.2||$1,055.8||-3.4%|
|WALT DISNEY CO||$948.4||$1,008.5||-6.0%|
|Source: TNS Media Intelligence|