Ad spending trends can signal many things including the health of the economy or certain sectors within it, the performance of media channels and marketers belief in the value of those channels. Q3 ramps into Q4 and gives some indication of where the year may end.
Kantar Media announced a 3.7% drop in Q3 ad spending which included 16 of 22 different media types declining within the industry. Some traditional platforms actually increased spending while certain digital formats fell. TV ad spend saw a decrease with broadcast network TV doing the best of all TV platforms. Kantar believes that this decrease may have been due to one less weekend of NFL games. Spot TV spend reductions reflected high political spending last year. Expect them to recover next year.
Paid search rose based on increased travel, media and auto dealer spending. The online display ad spending declined a whopping 12.2% with financial service, telecommunications and insurance spending seeing a decrease. This decline might be due to audiences moving to mobile platforms. Results do not include mobile and online video advertising, says Kantar.
Radio spending soared 5.1% with local radio seeing a 13% increase. Outdoor advertising jumped 4% with cinema advertising down 16%.
As a whole, ad spending declined to nearly $19.4 billion in the quarter.