Kantar Media report for Q2 shows larger declines in ad spending for magazines and newspapers
TV media up 5 percent in Q2, but radio spending remains soft
Yikes, more bad news for print media as Kantar Media released its report for second quarter ad spending. According to the company, magazine ad spending fell 5.7 percent, while newspaper ad spending fell 10.4 percent. Both declines were greater than the declines seen in Q1.
Internet ad spending was up 6.2 percent, but this was a smaller increase that seen in Q1. In fact, overall ad spending was essentially flat in the second quarter after growing 3.1 percent in Q1.
Television saw growth in ad spending, 5.0 percent, which radio saw spending fall 3.6 percent.
There is good news on the horizon, however. Ad spending is expected to grow in the third quarter as political advertising heats up for the mid-term elections. That spending should carry over into October.
Kantar Media attributed the slow down on Q2 to advertisers that spend during the Olympics slowing down their spending.
“The slow growth rate of ad spending in Q2 is payback for the surfeit of money in Q1 that was pulled forward to fund Olympics budgets,” said Jon Swallen, Chief Research Officer at Kantar Media North America. “Our analysis shows that Olympics advertisers reduced their year-over-year Q2 spending by more than 4 percent while non-Olympics advertisers posted a 2 percent increase. The latter is more indicative of core ad market performance at the midyear point.”
In the newspaper segment, Sunday magazines took a big hit, with spending down 15.8 percent – attributable to pharmaceutical and consumer package goods pulling back during the quarter.
Other ad spending reports also show declines in magazine spending. The ABM’s BIN report shows Q1 ad pages down 5.62 percent so far this year. The MPA’s PIB report reported Q1 ad pages down 4.0 percent.
Ad spending numbers generally show better performance as they include expected rate increases – increases that sometimes are not actually able to be passed on to advertisers in the real world.