US Ad Market Declines in 4Q 2011, Stymied By Search, Display Sectors

Mar 13, 2012

The total U.S. ad market grew only 0.8% for all of 2011, according to a new report released by research firm Kantar Media and reported on by Kantar, owned by global ad-agency conglomerate WPP, PLC, reported that 4Q 2011 was the worst 3-month period for U.S. advertising growth in 2 years: The market grew 8.7% in 3Q 2010, but every month since, ad revenue growth has decreased, falling 1% in 4Q 2011 alone.

Kantar pointed to digital sectors for stymieing growth of the overall market, attributing the decline to the migration of advertising dollars into less mature markets, such as mobile.

Paid search fell 6.4% in the fourth quarter, and 2.8% for all of 2011, with financial, insurance, and local service providers investing fewer dollars. Internet display advertising decreased 5.9% in 4Q 2011 but increased 5.5% for the entire year. In the fourth quarter, broadcast TV was up 7.7% and cable was up 2.4%.