According to findings with the third quarter of 2009 through the Nielsen Company -exactly the same business that collects and compiles TV ratings- I recommended the current recession and loss of ad spending should motivate ad buyers to re-exam some lengthy-held concepts about where better to spend their shrinking ad budgets and just how they may need redirecting some of the spending towards digital signs advertising.
Recently, Nielsen released its preliminary figures its 2009. They deomonstrate a general 9 % decrease in advertising spending, or perhaps a decline of $11.6 billion in the 2008 total of $117 billion. Using the 4th quarter of 2009 taken into account, the decline becomes the sixth consecutive quarterly stop by ad spending, although in a pace which has slowed within the last couple of quarters.
The most recent figures also reveal that for that 10 groups where ad expenses are the finest outlays to promote declined 9.five percent in ’09 when compared to previous year. Based on the Nielsen Company statistics, the very best 10 ad groups and spending in every were:
Product Category – Jan-12 , 2009 – Jan-12 , 2008 – % Change
Automotive——- $8,039.1 — $10,491. — (-)23.4%
Pharmaceutical — $4,504.6 — $4,424.6 — 1.8%
QSR Restaurant — $4,068.5 — $4,014.9 — 1.3%
Shops-$4,066.3 — $3,956. — 2.8%
Wireless Phone—-$3,386.2 — $3,689. — (-)8.2%
Movie—-$3,368.4 — $3,414. — (-)1.3%
Car Dealerships–$3,227.2 — $4,188.6 — (-)23.%
Direct Response—$2,465.9.– $2,582.9 — (-)4.5%
Restaurants——-$1,557.6 — $1,615. — (-)3.6%
Furniture Stores–$1,437.5 — $1,553.1 — (-)7.4%
Total Top Ten——$36,121.2 – $39,930.5 – (-)9.5%
The Nielsen figures show both vehicle groups -the “automotive” category representing factories and dealer associations and also the auto dealership category- saw the finest decline. That isn’t surprising because of the high amount of apprehension among many U.S. workers, who’ve themselves unemployment, taken a temp job to pay the bills, or seen buddies and family furloughed and let go. Understandably, there’s a desire not to invest in many years of vehicle payments while job anxieties are running high for countless workers.
Within this atmosphere, possibly the marketing executives at vehicle companies and dealerships would prosper to reconsider their advertising strategy. Instead of focusing almost positioned on getting individuals to enter their showrooms through TV, radio and newspaper ads, they might be better offered by reallocating some of the existing ad budgets to speak via digital signs with those who already are available in every day to obtain their vehicles serviced.
While traditional advertising is essential, I contend it’s essential to speak directly with existing customers who’ve a history of supporting the casino dealer or logo and will be ready to spend some money. Digital signs is an efficient tool to achieve this on-premise messaging since it can speak to the requirements of individuals the casino dealer and simultaneously exploit the persuasive aspects of video, audio, graphics, animation and text which are the staples of television. Exactly the same might be stated for many of top ten ad groups that experienced declines in ’09.