Top ten US advertisers, Q1-Q3 2007

Fact recorded on: December 25, 2007. Categories: Advertising.

During the first nine months of 2007, the top 10 advertisers spent a combined total of $13.3 bln in measured media, a reduction of 2.3% from in 2006. The pace of spending for this select group picked up in Q3 2007, advancing by 3.1%. Extending outwards to the top 50 marketers, a more diversified group representing one-third of the measured ad economy, expenditures were down 2.2% year-to-date, to $34.3 bln. Outside the top 50, the segment which has been principally responsible for industry growth in recent years, spending rose 1.4% versus in 2006. Procter & Gamble maintained its position as the largest advertiser with $2,466.5 mln in spending, up 1.3% from in 2006. General Motors had the largest reduction among the top ten as its expenditures fell 18.0% to $1,425.8 bln. However, Q3 2007 spending was up 2.0% versus in 2006, the first quarterly increase for the automaker in over two years.

Telecommunication companies kept their grip on three of the top ten spots. AT&T expenditures were off 5.1% to $1,663.4 mln. The reductions were mostly in corporate promotion messaging as opposed to branded product campaigns. Higher spending behind core wireless businesses helped lift the total outlays at Verizon Communications (up 5.8%, to $1,514.1 mln) and Sprint Nextel (up 12.4%, to $997.8 mln). On the other side of the ledger, top diversified media companies each trimmed their measured ad spending. At Time Warner, scaled-back marketing support for the America On Line ISP service more than offset increased budgets at the movie studios. Total expenditures contracted by 2.2%, to $1,197.9 mln. Spending at Walt Disney fell by 6.0%, to $948.4 mln and at News Corp. by 5.7% to $851.7 mln on lower levels of advertising for their TV networks and motion picture releases.

Top Ten US Advertisers: Q1-Q3 2007 vs. Q1-Q3 2006, mln.
COMPANY Q1-Q3 2007 Q1-Q3 2006 Growth
PROCTER & GAMBLE $2,466.5 $2,435.8 1.3%
AT&T INC $1,663.4 $1,752.7 -5.1%
VERIZON $1,514.1 $1,430.5 5.8%
GENERAL MOTORS $1,425.8 $1,738.1 -18.0%
FORD MOTOR CO $1,221.7 $1,186.6 3.0%
TIME WARNER INC $1,197.9 $1,224.6 -2.2%
JOHNSON & JOHNSON $1,020.2 $1,055.8 -3.4%
SPRINT NEXTEL $997.8 $887.7 12.4%
WALT DISNEY CO $948.4 $1,008.5 -6.0%
NEWS CORP $851.7 $903.4 -5.7%
TOTAL $13,307.6 $13,623.7 -2.3%
Source: TNS Media Intelligence

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