nielsen-regional-q2-11-oct-2011.JPGDespite overall growth of 5.7% for the global advertising industry in Q2 2011, ad spending fell in nearly half the world’s key markets in Q2 2011, according to The Nielsen Company’s quarterly Global AdView Pulse report. Nielsen reported that advertising revenue dropped in Q2 in 16 out of 36 global markets, marking the first significant decline since the Q3 2009 report when ad spend fell in more than half the markets monitored at the height of the global recession.

Overall, global advertising in Q2 2011 totaled USD $127 billion (mainly based on published rate cards and four major media types), and the first half of 2011 closed with 7.2% growth compared to the same period in 2010. The Q2 rate was 36% lower than the 8.9% global growth rate recorded in Q1 2011.

Asia-Pacific Leads Regional Ad Spend Growth

Asia Pacific posted the strongest regional year-over-year ad spending growth in Q2 2011 (+9.3%) with double-digit increases from Indonesia (18.9%), China (14.8%), Hong Kong (13.4%) and the Philippines (12.6%). Latin America closely followed with 8.2% regional growth, driven by 28.5% growth in Argentina, the highest rate of all 36 individual markets analyzed by Nielsen.

North America reported more modest 3.1% ad spend increase in Q2, while Middle East/Africa had a similar 2.6% increase. However, in Western Europe, quarterly ad spend flat-lined with -0.3% growth and seven out of 12 European markets reported quarterly declines. In one positive sign, ad spend in Germany, Europe’s largest economy, reported an increase of 3.1% in Q2.

Globally, the hardest hit national markets in Q2 were Egypt (-51.7% YOY), where Nielsen analysis indicates advertisers remained cautious amid the uncertain political and economic climate following the “Arab Spring” of earlier this year. Other double-digit declines were reported in Turkey (-12.9%) and, Taiwan (-11%) as well as the Southern European markets of Spain (-12.6%) and Greece (-13.7%).

TV Continues Global Ad Domination

While radio posted the most robust percentage increase among all traditional media in Q2 (8.2%), overall television continued to dominate global advertising and increased its share of voice and spend. In the first half of 2011, television ads attracted 65% of global ad spend, up slightly from 63.7% one year ago. In the US, Nielsen analysis shows TV viewing increased 22 minutes per month per person compared to last year, so the medium remains the dominant source of video content for all demographics.

FMCG Ad Spend Rises 4% Overall

nielsen-fmcg-q2-11-oct-2011.JPGDespite a 4% global year-over-year growth rate in Q2 2011, declines in ad spending for the fast moving consumer goods (FMCG) category occurred in Europe and North America. FMCG advertising posted its lowest quarterly growth since the Q1 2009 Pulse report: 4% globally with notable declines of -3.6% in Europe and -3% in North America. Nielsen analysis indicates the decline in FMCG ad spend was particularly surprising as the Easter holiday, traditionally a key occasion for FMCG and confectionary advertising in Europe and North America, took place in late April this year, which should have pushed more ad revenue to the beginning of Q2.

Within FMCG, cosmetics and toiletries posted the most robust growth of 6.9% and accounted for nearly 10% of global ad spend in this category. Interestingly, clothing and accessories, which was among the worst hit recession categories in 2009, posted the highest quarterly year-on-year increase in Q2: up 17.9% globally, driven by a hefty 27.9% increase in Asia Pacific that included a +39.8% increase in China.

Kantar: H1 US Ad Spend Up 3%

Total US advertising expenditures in the first six months of 2011 increased 3.2% from a year ago and finished the period at $71.5 billion, according to data released in September 2011 by Kantar Media. Spending growth eased slightly during the second quarter and was up 2.8% compared to last year.

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