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Automotive Industry Leads Global Ad Spending Rebound

Amongst all consumer product related sectors, the automotive product sector led a global 10.6% year-over-year increase in ad spending during 2010, according to new Global AdView Pulse data from The Nielsen Company. TV show promotional spending grew 13.1%, while automotive spending increased 20.3%.

Traditional Ad Media All Show Growth

All traditional advertising media types showed year-over-year spending increases in 2010. Besides TV advertising, which increased to 62% of all ad spend share (the highest on record), radio advertising rose 8.5%, followed by newspapers at 7%. Magazines recorded the slowest growth of all traditional media types at 4.9% globally, and Nielsen data shows that regionally, this media sector only posted double-digit growth (14.9%) in Latin America.

Auto, Finance, FMCG Leading Product Sectors

Two of what Nielsen recorded as the hardest hit sectors during the global downturn, automotive and finance, returned from their recession hiatus and increased ad spend in 2010 by 20.3% and 17.9%, respectively. Nielsen data shows six automotive companies were among the top 20 global advertisers in 2010.

In addition, ad spend for fast moving consumer goods (FMCG) increased 14.6% in 2010, and the sector’s share of ad spend also increased 4%, from 23.9% to 24.9%. Regionally, FMCG spend grew by more than the global average in Middle East/Africa (34.3%), Latin America (23.9%) and Asia Pacific (16%).

Nielsen advised that FMCG and emerging markets will continue to lead global advertising trends, with one in every four ad dollars spent last year was on FMCG; focused in key developing regions.

Emerging Markets Fuel Global Ad Spend Growth

The global advertising posted a 10.6% year-on-year increase to $503 billion USD in 2010. Nielsen analysis indicates strong performance in Asia Pacific, surging growth from emerging consumer regions of Middle East/Africa and Latin America, and spending related to the 2010 World Cup all contributed to overall growth. Overall 23 out of 37 global markets posted double-digit ad growth last year.

Pan-Arab Market Posts Highest Growth

Emerging markets attracted advertisers to new booming markets in Pan-Arab (+43%), Egypt (+40.8%), and Argentina (+38.9%), which recorded the highest percentage advertising increases.

The USA, the world’s largest advertising market, had one of the slowest regional 2010 growth rates of 5.6% year-over-year, but is back in positive territory after advertising expenditure dropped 9% in 2009. The only market to experience a decline in advertising in 2010 was the United Arab Emirates (-4.4%) while advertising remained virtually flat in the mature markets of Japan (+1.3%) and Spain (+0.4%).

In Asia Pacific, nine out of 13 markets enjoyed double-digit growth compared with the previous year, with strongest rebounds from India (+28.1%) and Taiwan (+19.1%). China, the world’s second largest ad market, which accounts for half of Asia Pacific’s total ad spend, gained more of the region’s total ad expenditure in 2010 at 51.4%, up slightly from 51% in 2009, complementing a 10.9% increase in ad expenditure for the market.

Latin America, in addition to posting the second highest regional ad spend increase (+21.2%) in 2010, spearheaded by Argentina, also benefited from the highest ad increases across the financial (+37.2%), entertainment (+17.8%), clothing/accessories (+22%) and media (23.8%) sectors.

In Europe, where most markets cautiously emerged from recession last year, Belgium, France, Sweden, Switzerland and UK posted approximately 10% increases. Advertising spend during 2010 peaked during Q2, with the World Cup driving the highest year-on-year increases of almost 13%.

Kantar: TV, Net, Outdoor Drive US 2010 Ad Spend Rise

Total US advertising expenditures increased 6.5% in 2010 and finished the year at $131.1 billion, according to data released by Kantar Media. Solid increases in ad expenditures in the TV, internet and outdoor sectors helped offset smaller increases in the radio, FSI and magazine sectors and negative growth in the newspaper sector.


So... What say you? Has your dealership or car company invested additional marketing dollars to better capture rising interest in new and used vehicle purchases by consumers?  What is your team doing to tap into the single biggest rise in "Pent Up demand" since World War II?

Tags: Ad, Automotive, Global, Industry, Leads, Rebound, Spending

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