2012 TV ad spending strong, but trumped by online video
Posted on Mar 13, 2013 by YuMe
Despite a troubled economy, last year saw a year-over-year increase in total ad spending of 3 percent to reach $140 billion, according to Kantar Media, a marketing research and advisory firm. During the fourth quarter of 2012 alone, ad spending increased 2 percen from the same period one year before.
"The advertising market has grown for three consecutive years and in 2012 it added more than $4 billion in spend, with the Summer Olympics and political advertising contributing about one-half of the gain," said Jon Swallen, chief research officer at Kantar Media North America.
While large advertisers reduced their media budgets in 2011, the top 100 marketers expanded investments in 2012, Swallen added.
Hey big spenders: TV ad investments up
According to to the Kantar report, spending on television ads took the lead among media types. Network TV expenditures rose 5 percent in quarter four, with one-half of the dollar value increase attributed to the NFL and NCAA games.
Investments in spot advertising, or geographically targeted efforts, saw an impressive 12 percent increase during the same time period because of political campaigning. The year-over-year 10 percent increase for 2012 was driven by political candidates and members of the auto industry, which saw significant sales gains last year.
Even though Procter & Gamble's ad spending went down in 2012, the corporation still took the crown among top investors, with ad expenditures reaching $2,806 million. Comcast was No. 2. Other major players included Toyota, General Motors, AT&T, News Corp and Berkshire Hathaway.
Investments in video ads online grow faster
The bulk of the increase can be attributed to brands that worked to sync their television and online marketing efforts. Sixty-seven percent of surveyed respondents said they view video ads online and TV commercials as complementary, which is an 8 percent increase from the year before, the news source reported.
Both studies revealed a decrease in ad spend on display ads online, which means brands understand their money can be better spent elsewhere. With more consumers turning to multiple devices to access video content, companies can capitalize on their habits by harmonizing their TV and online video ad campaigns.