Marketing Spend Q1 07
May 03 2007 - 7:44AM
RNS Non-Regulatory
Thomson Intermedia PLC
03 May 2007
UK brand advertisers realising Internet's potential
3 May 2007
The first comprehensive media spend estimates for the twelve months to 31st
March 2007 are published today by Thomson Intermedia.
The barometer covers TV, Press, Outdoor, Internet display, Direct Mail, Door
Drops, Radio and Cinema spot advertising media spend. It is the first to
provide a true picture of spend levels by reporting Press at actual cost based
on average industry discounts.
The key findings for the past twelve months are:
* Overall UK media spend increased 5% in the year to 31st March 2007 thanks
to strong growth in Press, Direct media and Internet display advertising
budgets.
* Traditional broadcast TV advertising fell 4% in the last year, Radio
advertising fell 9%.
* Revenues across all three main terrestrial broadcasters fell, with ITV
advertising revenues falling fastest by 11% year on year. Their digital
channels all grew by at least 50% though their scale remains insufficient
to offset overall losses.
* Internet display ad spend (excl. Search and Classified) grew 9% in the
last year.
* Press grew 10% overall in the past year thanks mainly to 17% growth in
quality titles' colour pages.
* Door Drops spend exceeded Direct Mail thanks to raised investment from
Retail and Finance sectors.
Sarah Jane Thomson, CEO of Thomson Intermedia commented:
"There is a strong sense of media being in transition and tremendous uncertainty
about what will happen as the pace of change seems to get faster daily.
Advertisers naturally want to stay ahead of the curve and get things right, but
one fear we should see assuaged with time is of audiences fragmenting endlessly,
eroding forever the critical mass traditional media once offered."
General Observations:
Audiences are emerging in significant new ways and technologies driving change
enabling more cost effective communications, albeit on different terms.
Definitions of media are expanding, but the means to tie marketing activities
more closely to business objectives are increasingly available to those able to
exploit them. The media landscape of the not too distant future will certainly
be very different. Several online TV services launching soon will offer
commercial breaks, having signed up major commercial and media partners. Brand
advertisers, who have struggled most lately, are beginning to realise the
Internet's potential as more consumers spend more time online and convergence of
technologies removes barriers to doing business as usual."
Internet display advertising grew by 9% year on year, which shows an expected
slowdown in the dramatic growth seen across 2005 and 2006. The internet is
maturing as a medium so year on year increases are naturally smaller. Market
observers are forecasting total internet ad spend growth around 25% year on year
showing that much of the growth of the digital ad market is coming from
integrated solutions and partnerships with publishers. Use of standard display
formats is still growing, but increasingly brand advertisers expect more
engaging ways of holding a dialogue with consumers. The lines between
advertising and content are blurring.
Of the top five spending sectors only Retail and Entertainment have been truly
buoyant in the past year. Retail was the only category in the top five that
raised TV budgets and was equally conspicuous for increasing Radio advertising
investment. Direct marketing however, was the main beneficiary of Retailers'
increased overall media spend. Retailers cut back on generic Internet display
advertising by 26% overall in the past year compounding the decreased rate of
growth measured for overall Internet display advertising. Toiletries/Cosmetics
and Travel sectors' growing affinity with Direct marketing has also been at the
expense of broad Internet display ad spend and contributed significantly to this
trend.
Enquiries:
Tony Squires
Managing Director
Thomson Intermedia
T: 0207 321 4000
tsquires@thomson-intermedia.com
www.thomson-intermedia.com
About Thomson Intermedia group
Thomson Intermedia Plc is the largest independent media business in the UK
employing more than 200 staff including 65 media specialists. We provide
advertising creative capture and media expenditure evaluation services across
all media to over 350 UK advertisers. billetts, a Thomson Intermedia company,
is the UK's leading media auditor offering consultancy services to 150 UK
advertisers. The group works for over 70 of the UK top 100 advertising
companies. Thomson and billetts combine to offer unrivalled expertise and
experience advising to major advertisers on communications strategy.
Media Spend (Year to March 31st by Quarter)
Media by Quarter: Year to 31st March 2007
# Millions Q2 2006 Q3 2006 Q4 2006 Q1 2007 Total % Diff
TV #1,008 #908 #1,067 #947 #3,929 -4%
Press* #654 #612 #751 #679 #2,695 10%
Direct Mail #323 #314 #369 #318 #1,323 17%
Door Drops #318 #319 #317 #388 #1,341 19%
Outdoor #172 #192 #219 #218 #801 7%
Radio #87 #68 #72 #79 #305 -9%
Internet #41 #45 #36 #41 #164 9%
Cinema #44 #31 #43 #27 #145 8%
TOTAL (All) #2,646 #2,488 #2,873 #2,696 #10,704 5%
* PRESS rate-card discounted 52%
Sector Spend by Quarter (Year to March 31st by Quarter)
Sectors by Quarter: Year to 31st March 2007
# Millions Q2 2006 Q3 2006 Q4 2006 Q1 2007 MAT % Diff
Retail #491 #451 #753 #539 #2,234 19%
Finance #459 #429 #382 #450 #1,720 0%
Entertainment & Media & Leisure #297 #288 #372 #302 #1,260 5%
FMCG #327 #287 #280 #281 #1,175 0%
Automotive #237 #246 #169 #246 #898 -3%
IT/Communications #217 #186 #216 #210 #829 -7%
Toiletries/Cosmetics #173 #175 #211 #136 #694 6%
Travel #120 #123 #115 #185 #542 6%
Pharmaceutical #91 #86 #102 #97 #375 12%
Education & Charities #79 #80 #102 #83 #345 20%
Government & Utilities #55 #77 #67 #98 #297 -6%
Electrical & Household #81 #45 #90 #50 #266 20%
Other #19 #15 #16 #17 #67 -7%
TOTAL (All) #2,646 #2,488 #2,873 #2,696 #10,704 5%
* PRESS rate-card discounted 52%
Sector Spend by Quarter (Year to March 31st by Quarter)
Sectors by Media: Year to 30th March 2007
# Millions TV Press Direct Door Drops Outdoor Radio Internet Cinema MAT % Diff
Mail
Retail #648 #568 #367 #491 #76 #73 #8 #4 #2,234 19%
Finance #472 #264 #498 #365 #59 #24 #37 #2 #1,720 0%
Entertainment & Media & #527 #250 #122 #98 #172 #36 #36 #18 #1,260 5%
Leisure
FMCG #811 #158 #10 #7 #129 #25 #2 #33 #1,175 0%
Automotive #267 #440 #20 #30 #62 #40 #14 #26 #898 -3%
IT/Communications #233 #227 #49 #102 #127 #26 #37 #29 #829 -7%
Toiletries/Cosmetics #375 #258 #5 #3 #35 #5 #2 #12 #694 6%
Travel #100 #271 #54 #29 #52 #14 #15 #7 #542 6%
Pharmaceutical #227 #58 #21 #39 #16 #11 #2 #1 #375 12%
Education & Charities #48 #35 #141 #98 #12 #6 #4 #1 #345 20%
Government & Utilities #108 #53 #19 #24 #41 #42 #4 #7 #297 -6%
Electrical & Household #94 #85 #14 #51 #11 #3 #2 #6 #266 20%
Other #20 #29 #1 #4 #8 #2 #1 #0 #67 -7%
TOTAL (All) #3,929 #2,695 #1,323 #1,341 #801 #305 #164 #145 #10,704 5%
Thomson Intermedia Methodology Overview
------------------------------------------------------------------------------------------------------------------------
Media Creatives Available Spend Available
Press * National Dailies * 8:00am day of publication * Rate card base * Same as creatives
(Jan. 1998) * National Sundays * Close of day * Optional user
discounting
* National Weeklies * Close of release date (subject
to post)
* Regionals * Close of next day (subject to post)
* Monthly Titles
(Consumer /Business) * Within 1st week of cover date
(generally far sooner)
------------------------------------------------------------------------------------------------------------------------
Direct Mail * ABC-audited panel of * Within first 2 * Unit cost per pack * By 27th of
(Feb. 1998) 6,000 individuals weeks of based on postage and following
following weight multiplied by month
month estimated national
volumes
* Demographically-weighted
* Nationally-representative
* All contents scanned
* including cover letter,
envelope, etc.
------------------------------------------------------------------------------------------------------------------------
Door Drops * Same as Direct Mail * Within first * 2 Unit cost per pack * By 27th of
(Oct. 2001) weeks of based on postage and following
following weight multiplied by month
month estimated national
volumes
------------------------------------------------------------------------------------------------------------------------
TV * Automated monitoring * Within 2 hours * CPT using monthly BARB * Updated
(Jan. 2000) and capture: of airing commercial spots daily,
audience data and 10-days in
channels' declared arrears
revenues
- National terrestrial * Spot updates * Advertiser & brand
often as buying audience
little as 20 specific CPTs
minutes
- Regional terrestrial * Channel specific CPTs,
including
differentiated key
multichannel station
groups
- Multi-Channel
- Commercials/Sponsorships
------------------------------------------------------------------------------------------------------------------------
Radio * Automated monitoring * Within 48 * As TV. Audience * Updated
(Jan. 2002) and capture: hours of figures sourced from weekly,
airing RAJAR combined with 12-days in
industry-standard
J-ET arrears
booking data
* Primary nationals * Spot updates often as little
as 20 minutes
* Other regionals
------------------------------------------------------------------------------------------------------------------------
Outdoor * Team of photographers * Every 2 or 3 * UK national spend data * By 20th for the
(Jan. 1999) taking digital photos days supplied by OAA previous
of: (Outdoor Advertising month
Association) / IPA
Outdoor
- Top 1200 outdoor * Twice per month
sites in Greater
London area
- Ambient (bus, taxi, etc.)
London Transport
------------------------------------------------------------------------------------------------------------------------
Internet * Proprietary web spiders * Close of * Methodology updated * Close of
(Jan. 2001) business day from July 2006 to following
employ gold standard business
inputs from comScore day
and billetts
interactive with
revised sites list.
* Crawl the top 334 UK * Calculate using banner
websites several hundred frequency (%) and
times each per day fully differentiated
cost structure based
on banner size,
website category and
placement multiplied
by averaged actual
market CPTs.
* Capture banners, buttons,
logos including gif's,
flash, pop-ups (inter/
super-stitial)
* Search advertising
product in development
------------------------------------------------------------------------------------------------------------------------
Cinema * Industry-sourced from * By 20th for * Industry-sourced * By 20th
(Jan 2000) media owners the previous calendar creative and spend previous month
month from media owners,
100% spend coverage
------------------------------------------------------------------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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