Trends in Multicultural Ad Spending

March 19, 2010 at 11:20 AM Leave a comment

Attached is a report from Nielsen on Multicultural Advertising Spending Trends in 2009 , which takes a look at advertising targeted towards Spanish-Language and African-American segments. According to the report, spending on Spanish Language and African-American media declined 4.7% and 7.3%, respectively, in 2009. The declines are consistent with the trend in overall advertising, although are not as deep.

Spanish Language Ad Spending: Nielsen found that Spanish Language advertising was down 4.7% in the U.S. last year. A total of $5.4 billion was spent on all Spanish Language media in 2009, down almost $270 million from the previous year. The slide was paced by significant declines in National Magazine and Local Newspaper advertising, which were down 38% and 25%, respectively.

The decreases in print media were offset by a 32% increase in Spanish Language Cable advertising. Nielsen found that 19 of the top 20 advertisers in the medium increased their ad spends year over year.

Spot TV was the top cash generator for Spanish Language media in 2009 with an estimated $1.4 billion in ad sales, down 10% compared to the previous year.

Spanish Language Media
Media Type 2008-$ (000) 2009-$ (000) % Change
Local Magazine 988.2 0.0 -100.0%
Local Newspaper 103,144.6 77,059.5 -25.3%
National Magazine 182,096.7 112,558.7 -38.2%
Spanish Language Cable TV 323,065.0 426,959.4 32.2%
Spanish Language Network TV 2,982,158.3 2,866,092.5 -3.9%
Spot Radio 567,233.9 562,481.3 -0.8%
Spot TV 1,559,307.8 1,402,754.4 -10.0%
Total 5,717,994.5 5,447,905.7 -4.7%
Source: The Nielsen Company

African-American Ad Spending: Spending on African-American media saw a similar decline of 7.3% in 2009. The decline was paced by decreased spending in Network TV (-72%) and National Magazines (-33%).

Increased spending on Cable TV helped balance out the losses. Advertisers spent 35% more on African-American Cable in 2009, thanks to added spending by each one of the top 20 advertisers in the category.

Spot Radio earned the most revenue among African-American media in 2009. Advertisers spent $748 million on the medium last year, almost 10% less than in 2008.

African American Media
Media Type 2008 $ (000) 2009 $ (000) % Change
Cable TV 539,193.6 728,440.8 35.1%
National Magazine 530,766.1 353,806.7 -33.3%
Spot Radio 826,824.5 747,794.7 -9.6%
Network TV 95,524.8 26,626.8 -72.1%
Syndicated TV 110,638.4 92,935.8 -16.0%
Total 2,102,947.5 1,949,604.8 -7.3%
Source: The Nielsen Company

Product Categories: The top spending product category for both Spanish Language and African-American media was Quick Service Restaurants. Advertisers within the category spent $335 million on Spanish Language media and $87 million on African-American media. McDonald’s was the top fast food advertiser in both media segments. The Automotive category was the next highest spender in both multicultural media. Spending in Spanish Language was down 39% in 2009, paced by double-digit percent losses by each of the top five auto advertisers. Spending by the auto industry in African-American media was down 18% year over year.

The category showing the most growth among the top 10 Spanish Language advertisers was Satellite TV providers. Advertisers in this category upped their ad spends 77% in 2009, as satellite TV companies made the pitch for their services in the run up to the DTV transition in June 2009.

Spanish Language Categories
Product Category 2008-$ (000) 2009-$ (000) % Change
RESTAURANT-QUICK SVC 293,652.9 334,593.0 13.9%
AUTOMOTIVE 528,577.9 323,230.0 -38.8%
TELEPH SVCS-WIRELESS 316,808.3 305,463.7 -3.6%
STORE-DEPT 307,345.4 294,420.8 -4.2%
SATELLITE COMM SVCS 134,658.1 238,744.6 77.3%
DIR RESP PROD 220,632.3 237,227.6 7.5%
BEER 165,045.9 171,677.7 4.0%
LEGAL SVCS 89,684.3 123,847.0 38.1%
MOTION PICTURE 112,015.0 99,846.5 -10.9%
INSURANCE-AUTO 144,305.0 98,084.0 -32.0%
Source: The Nielsen Company

Insurance companies showed the most growth among the top 10 African-American media spenders. General Insurance and Car Insurance categories placed 8th and 9th after increases of 29% and 24%, respectively. The Motion Picture category showed similar growth, increasing its spend 24% to $72 million.

African American Categories
Product Category 2008-$ (000) 2009-$ (000) % Change
RESTAURANT-QUICK SVC 72,909.6 86,906.8 19.2%
AUTOMOTIVE 105,005.7 85,851.1 -18.2%
STORE-DEPT 76,117.9 72,234.3 -5.1%
MOTION PICTURE 58,094.9 71,937.5 23.8%
TELEPH SVCS-WIRELESS 52,610.6 50,602.5 -3.8%
PHARMACEUTICAL 50,542.5 47,556.1 -5.9%
DIR RESP PROD 41,810.4 43,544.9 4.1%
INSURANCE 26,739.2 34,378.2 28.6%
INSURANCE-AUTO 26,285.0 32,521.9 23.7%
CREDIT SVCS 23,052.1 28,204.4 22.4%
Source: The Nielsen Company

Here  is the complete report from Nielsen: MultiCulturalSpotlight10.23.09

Advertisements

Entry filed under: Advertising Tips, General Research, Market Conditions.

Demographics of Kindle and Other eReader Users Broadcast TV versus Cable TV in Tampa Bay, Part 1

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 8 other followers

RSS Our Company Products’ Twitter Feeds

  • An error has occurred; the feed is probably down. Try again later.

%d bloggers like this: