The top 10 advertising categories in the first nine months of 2007 spent $54.3 bln, up 0.6% from a year ago. In aggregate, they account for approximately one-half of all measured ad spending. Financial Services maintained its top position with $6.7 bln in expenditures, up 5.5% for the nine month period. Despite the spreading turbulence in mortgage and banking markets that started in May, ad spending by mortgage lenders and retail banks continued to expand at double digit rates during Q3 2007. Direct Response had the largest share gain, up 15.1% to $5.4 bln. The category showed deep strength with higher ad spending levels across a broad range of brands. Personal Care Products gained 8.3%, paced by aggressive spending hikes from several top advertisers. Total spending within the Telecommunications category fell 4.0% to $6.6 bln, dragged down by Vonage Holdings and the AOL division of Time Warner. The ongoing slump in automotive sales still extends to advertising budgets as well. Non-Domestic Auto dropped 6.1% to $5.9 bln and Domestic Auto shrunk 9.1% to $5.1 bln. Automotive advertising has now declined for nine consecutive quarters.Outside the top categories, the impact of a cooling housing market was seen in lower rates of ad spending for Real Estate (off 13.9% to $2.1 bln) and Home/Building Retailers (down 1.9% to $3.5 bln).
Top Ten Advertising Categories in Q1-Q3 2007
|CATEGORY||Q1-Q3 2007||Q1-Q3 2006||Growth, YTY|
|LOCAL SERVICES & AMUSEMENTS||$6,573.8||$6,423.3||2.3%|
|TRAVEL & TOURISM||$4,051.1||$4,056.2||-0.1%|
|Source: TNS Media Intelligence|