TNS Media Intelligence released its report of advertising spending for the first 9 months of 2008. Overall expenditures are down 1.7%, and indicators show further decline is on the way. While we've all been aware of the economic downturn for a few months now (unless you're head was under a rock), there's more to this information than what you might see with just a surface glance. Small businesses should be paying attention, as the changes in spending say a lot about changing times, and not just the changing economy.
For one thing, the decline was led by a 10% drop in newspaper advertising, (as compared with 2007). Interestingly, local newspaper ad spending fell 10.2%, while national fell 8.9%. What does this tell us?
Number one, newspaper advertising is not as effective as it once was, as readership has been steadily declining and the target market is aging. Secondly, small businesses are moving away from newspaper advertising faster than large companies (hence the higher drop in local newspaper ad expenditures).
Radio advertising came in second - falling 8.8% overall. This is largely due to the growth of satellite radio. Here the small vs. large business ration is flopped. Larger companies are dropping radio from their marketing mix faster than small companies (national spending fell 11.1%, local spending only 9%). This is because radio is still quite effective on a local level and still affordable for small businesses with the right placement, offer and message.
So, who were the winners? There had to be growth if two large segments fell over 18% combined, but overall expenditures were only down 1.7%.
Overall, television had a 2.1% increase where national syndication spending rose 9%, cable increased 3.7%, and network spending rose 3%. Local television spots fell 2.6%, despite record numbers of political ads. Clearly big companies shifted spending to television from newspaper, magazine and radio. Smaller local businesses shied away from the expense of TV (probably in an effort to hold onto cash).
Here's the big attention grabber: online ad spending rose 7%. That's an increase both by large, national companies and small local businesses. The bottom line...shifting advertising money to create, improve, add to, and market your website makes perfect sense! Today, you cannot succeed in business without a website, and you have to market it. As you can see, even in a down economy, businesses are spending money to advertise, and you should be too! It's not the time to retreat - it's the time to market smart.
Typically we don't like to hard sell in the blog, but it is so incredibly important that you make the right choices when it comes to advertising your business. Inspired 2 Design is here to help you make the smart decisions for marketing your business in an economic downturn. Our 20+ years experience makes I2D the best partner when it comes to reviewing your marketing plan, and implementing it - all under one roof.
Call us at 770-781-3452 to discuss your spending, and let us help you market smart!