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Ad Spending Increased in Q2; Financial Institutions Switch from Print to Internet
Thursday, September 12, 2013 6:55 AM

After holding ad spending flat in the first quarter, marketers increased their spending in U.S. measured media in the second quarter by 3.5 percent from the quarter a year earlier, according to data released today by Kantar Media. Their spending totaled $35.8 billion.

Ad spending for TV as a whole in the second quarter grew 6.4%, with cable TV seeing a 14.9 percent boost and broadcast TV rising 4.9 percent. Spanish language TV spending increased 6.1 percent in the second quarter, while dollars going to spot TV declined 3.5 percent during that same time.

Consumer magazines' print advertising climbed 1.9 percent, based on their rate card prices, but the number of ad pages fell 2.1 percent, Kantar Media noted.

Ad spending on local papers' print editions declined 4.3 percent as auto dealers, financial services and retailers reined in their budgets.

Internet display advertising climbed 4.1 percent thanks partly to increased spending from financial service and telecom marketers.

“We have definitely shifted our ad spending and in 2013 we decided to redirect our spending from print into internet, but also social media and in-app spending,” says Alison Wolf, vice president of marketing with FAA CU in Oklahoma City, Okla. “We have found some success with advertising on sites like Facebook and Pandora.”

Wolf says the credit union does a very small amount of print advertising, but continues to cut back on it.

“I think it’s very important to balance the media types,” Wolf adds. “There is still an audience that prefers print and there are some products that still justify that type of advertising. Making sure you know your goals align with your strategies is the key factor in choosing the right medium.”

The top advertiser from April through June was the usual No. 1, Procter & Gamble, which spent $804.8 million on marketing, a 35.3 percent boost from the prior year. AT&T and General Motors were also again among the top spenders. AT&T poured $501.8 million into advertising in the second quarter, good for a 33.2 percent increase. GM spent $378.6 million, which represents a 28 percent spike.

Retail marketers comprised the largest ad category in the second quarter, spending $3.8 billion in measured media, essentially unchanged from last year. Spending on auto ads was up 6.9 percent to $3.6 billion. Telecom saw the largest increase at 19.5 percent, to $2.4 billion.