Automakers Rein in US Adspend

01 May 2007

NEW YORK: The turmoil in the US motor industry was reflected in automotive adspend during 2006. Nielsen Monitor-Plus notes a 1% slip from the previous year to $13.5 billion (€9.92bn; £6.77bn).

Nielsen measured fourteen media platforms and found that $10.5bn - nearly 80% of the entire budget - was spent on television, lagged by the 11% spent in national magazines, totalling $1.45bn.

The biggest losers were local newspapers, which saw their share of auto adspend fall by 40% to $355m, just 2.5% of the total.

Other trimmed budgets included cable TV (down 9% to $1.4bn); national newspapers (down 6% to $160.6m); and syndicated TV (down 2% to $76m).

Among the media winners were spot-TV, up by 4% to $6bn-plus. Spend on Spanish-language network and cable TV rose 9% to $313m, while local magazines' share also climbed 9% to $10.2m.

As for the auto companies themselves, half the top ten increased budgets: Ford, Toyota, Honda, Hyundai and Mazda.

Meantime, General Motors, sliced its adspend by 10% to $2.8bn, but retained its position as the biggest marketer. DaimlerChrysler, Nissan, Volkswagen and Kia also reduced their budgets.

Data sourced from Adweek (USA); additional content by WARC staff