Dive Brief:
- U.S. ad spending dropped 4% in Q1 year-over-year.
- Eight of the ten highest-spending industries saw falling ad budgets.
- This news comes amidst “reviewmageddon” where a number of large brands are in the process of reviewing their advertising budgets and agency structures
Dive Insight:
If the ongoing “reviewmageddon” (or "mediapalooza") with many large brands rethinking and reviewing their advertising budgets and agency structures wasn’t enough to trouble ad industry insiders, a report from advertising tracker Kantar Media won’t help ease any sleepless nights. The report found U.S. advertising spending dropped 4% in Q1 as compared to the same period in 2014, and adjusted for special event influence, such as the Sochi Winter Olympics, spending was still down 2%. One industry with a particularly large drop was automotive -- the largest ad spender -- with an 11% drop.
The Kantar Media report tracks spending in television, newspapers, magazine, digital display and search ads. The report does not include digital video and mobile ad formats -- both areas of interest for advertisers. One bright spot in the report was a 4.1% lift in cable network ad spending.
