March 13th, 2009

U.S. Ad Spending Fell 2.6% in 2008, Nielsen Reports

PRNewswire

The Nielsen Company reported today that U.S.
advertising for the full year 2008 was down 2.6% compared to the full year 2007.
According to preliminary figures from Nielsen, U.S. ad expenditures declined almost
$3.7 billion to a total spend of $136.8 billion in 2008.

Hispanic Cable TV (+9.6%) and Cable TV (+7.8%) were the only two media to show ad
growth in 2008. Cable was the highest revenue-generating medium with $26.6 billion
in sales.

Media Category Jan-Dec ‘08 vs.
Jan-Dec ‘07 % Change

Hispanic Cable TV 9.6%
Cable TV 7.8%
Spot TV Top 100 -0.3%
Syndication TV -0.8%
National Sunday Supplement -1.9%
Hispanic Broadcast TV -2.4%
Network Radio -3.3%
Broadcast Network TV -3.5%
Local Magazine -3.7%
Spot Radio -4.0%
Spot TV 101-210 -4.6%
Outdoor -5.0%
FSI Coupon -5.2%
Internet* -6.4%
National Magazine -7.6%
National Newspaper -9.6%
Business to Business -9.7%
Local Newspaper -10.2%
Local Sunday Supplements -11.0%
TOTAL -2.6%

Source: The Nielsen Company

* Internet advertising expenditures account for CPM-based,
image-based advertising. These reported estimated
expenditures do not account for paid search advertising,
text only, paid fee services, performance-based campaigns,
sponsorships, barters, in-stream ("pre-rolls") players,
messenger applications, partnership advertising, promotions
and email campaigns or house advertising activity.

“Given the state of the U.S. economy, a decline in ad spending was expected, but
it’s not as bad as it could have been,” said Annie Touliatos, VP of Sales
Development for Monitor-Plus, Nielsen’s ad tracking service. “The campaign season
and the Summer Olympics were two big events that had a tremendous impact on
advertising, especially on TV buys.”

Print media continued its anticipated decline in 2008. Local and National Newspaper
ad spends declined 10.2% and 9.6%, respectively. National Magazines fell 7.6%, while
Local Magazines dropped 3.7%.

New media was also hit by the tough economic climate. Internet ad spends dropped
6.4% and Network TV took a 3.5% hit. Nevertheless, television continued to be the
dominant medium for advertisers, with 60% of all ad dollars spent on Network, Cable,
Hispanic, or Spot TV.

Spanish Language TV (network and cable) advertising continued to grow at a clip of
0.8%, while African-American TV fell 3.4%.

ADVERTISER SPENDING

The top 10 advertisers spent a total of $15.5 billion in 2008 - 15% less than the
year before. Not a single one of the top 10 advertisers spent more in 2008 vs. 2007.
Procter & Gamble maintained its perch as the top advertiser this year, despite a 19%
decline vs. 2007.

Detroit’s Big Three automakers held on to spots in the top 10, despite double-digit
percentage slashes in their ad budgets. Cerberus Capital Management (Chrysler) and
Ford Motor Co. cut advertising 31% and 29%, respectively. General Motors trimmed its
advertising 15%. Foreign automakers Toyota and Honda each made the top 10, but they,
too, slashed their ad spend 7% and 3%, respectively.

Parent Company Jan - Dec 2008 Jan - Dec 2007 % Change
(millions) (millions)

Procter & Gamble Co.  $2,848.2 $3,531.1 -19.3%
General Motors Corp.  $2,117.7 $2,488.6 -14.9%
AT&T Inc.  $1,662.7 $1,792.1 -7.2%
Verizon Communications Inc.  $1,614.8 $1,636.3 -1.3%
Toyota Motor Corp.  $1,555.0 $1,665.0 -6.6%
Ford Motor Co.  $1,416.1 $1,981.6 -28.5%
Johnson & Johnson $1,211.0 $1,280.1 -5.4%
Time Warner Inc.  $1,077.4 $1,411.4 -23.7%
Honda Motor Co.  $1,016.6 $1,045.9 -2.8%
Cerberus Capital Mgt. (Chrysler) $1,002.6 $1,456.7 -31.2%
Total Top 10 $15,522.1 $18,288.8 -15.1%

Source: The Nielsen Company
Note: Data does not include Internet or B-2-B Spending

No fast food parent companies cracked the top 10. But Yum! Brands (11th), parent
company of Taco Bell and KFC, spent $5.6 million more on advertising in 2008, while
McDonald’s (13th) boosted its ad spend $5 million.

Wal-Mart (19th) showed perhaps the most impressive ad growth in 2008. The retail
giant increased its spend 55% over the previous year with $771 million in ad buys.

PRODUCT SPEND

The automotive industry’s ad spending fell hardest in 2008. The industry slashed its
spending by almost $1.8 billion, or 15.5%.

Pharmaceuticals also cut back its spending significantly, declining 18% and almost
$1 billion compared to 2007. Quick Service Restaurants, however, was the only
category in the top 5 to spend more in 2008, with 3.8% more expenditures in 2008.
Direct Response placed 8th, having grown its ad spend 9.2%, thanks to increased
spending by companies like Video Professor (+389%), Allstar Marketing (+318%) and
Rosetta Stone (+73%)

Product Category Jan - Dec 2008 Jan - Dec 2007 % Change
(millions) (millions)

Automotive
(Factory & Dealer Assoc.) $10,016.1 $11,854.4 -15.5%
Pharmaceutical $4,344.1 $5,325.3 -18.4%
Auto Dealerships - Local $4,198.3 $4,604.6 -8.8%
Quick Service Restaurant $4,080.5 $3,932.8 3.8%
Department Store $3,890.9 $3,994.2 -2.6%
Wireless Telephone Services $3,431.4 $3,731.6 -8.0%
Motion Pictures $3,322.1 $3,750.6 -11.4%
Direct Response Product $2,576.9 $2,358.9 9.2%
Restaurant $1,618.6 $1,619.4 0.0%
Furniture Stores $1,580.8 $1,636.2 -3.4%
Top 10 Product Categories $39,060.0 $42,808.1 -8.8%

Source: The Nielsen Company
NOTE: Data does not include Internet or B-2-B spending.

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