U.S. Ad Spending Up 0.9 Percent in Q2

NEW YORK: Total expenditures on advertising in the U.S. in the second quarter of 2012 increased by 0.9 percent from a year ago, finishing the period at $34.4 billion, according to Kantar Media.

Total spending for the first half of the year grew 1.9 percent on the year-ago figures, to $67.1 billion.

TV continued to lead the ad market, with a growth of 4.4 percent. Cable expenditures grew by 4.2 percent, led by sports programming and networks with larger audience ratings. Network TV spend was down slightly, 0.4 percent, with comparisons hurt by a timing shift that moved the ad money from the NCAA Final Four games out of April and into the prior quarter.

Spanish-language TV budgets grew 17.8 percent. Spending on syndication rose 10 percent.

“Ad spending growth sputtered during the second quarter and was unable to sustain its early year momentum,” said Jon Swallen, the chief research officer at Kantar Media North America. “The advertising market is mirroring the tepid, slow growth performance of the general economy. Third quarter results will get a short-term boost from the Summer Olympics and political advertising but sustained long-term improvement will probably be linked to the health of consumer spending on the goods and services that marketers provide.”