GEICO Corp. topped all property and casualty writers in terms of advertising dollars spent in 2011, according to SNL Financial. The direct insurer spent just under $1 billion in 2011 on TV, radio, billboards and Internet banners in the U.S.
Why The Rosier Outlook For Ad Spending
On Tuesday MagnaGlobal upped its outlook for U.S. ad spending this year, raising its forecast from 2% growth to 2.2%, excluding political and Olympic spending. Vincent Letang, EVP and head of global forecasting at MagnaGlobal, talks about the state of the economy, why online advertising is so hot and what ad categories are not.
Media Spending Growing Faster Than GDP
Overall communications spending by consumers, marketers and institutions is expected to reach $1.419 trillion by 2015, giving it a compound annual growth rate of 5.7%, according to a new forecast from the private equity firm Veronis Suhler Stevenson. That’s substantially faster than GDP, which has a projected CAGR of 4.4% over that period.
Philadelphia: Off To A Slow Start In 2012
In contrast to many other markets around the country, Philadelphia is not seeing a big bump in ad spending so far in 2012. Demand, spending and pricing all down compared to last year at this time.
While social media is getting a lot of attention and spending, the big bucks are going where they’ve always gone — TV. Social-budget dollars are coming from print, radio and other Web properties.
Economy Slows, Will Advertising Follow?
This week brought grim economic news on various fronts, calling into question not only the durability of the economic recovery in general, but also the associated recovery in advertising spending that began in 2010. However, the latest economic woes are unlikely to send advertising into the kind of nosedive that gripped the industry in 2008-09.
Exclusives
Ad Spending Showing Signs of Life
While the economic recovery remains shaky, overall ad spending showed some modest signs of life during the first nine months of 2010, according to data released today by Kantar Media.
For years Colgate-Palmolive Co. defied odds as it held or gained share in the U.S. despite being massively outspent by bigger rivals, particularly Procter & Gamble Co. But in a growing number of categories — including toothpaste, deodorant, body wash, dish soap and pet food — Colgate has been losing share at an accelerating pace lately, fueling speculation that it will have to hike marketing spending dramatically next year.
