Total advertising spending in the US nearly ground to a halt in 2007, growing by just 0.2% compared with 2006, according to TNS Media Intelligence.
In the fourth quarter of 2007, total US advertising spending actually fell by 0.1% compared with the same period in 2006.
“As a whole, the ad market remains stalled and is being engulfed by the spreading pessimism about general economic conditions,” said Jon Swallen, SVP Research at TNS media intelligence.
“Fourth quarter performance was indicative of this malaise and early figures from 2008 suggest the growth rate for measured ad spending has not appreciably changed. A cyclical boost from the elections and Olympics still waits on the horizon. However, marketers are being cautious with their core ad budgets faced with concerns about consumer spending and corporate profits.”
Online advertising was a bright spot, growing by 16% in 2007. TNS does not measure paid search or online video advertising. When these are included, eMarketer estimates that online advertising grew by an even more robust 25% in 2007.