Kantar: Big Brands Spent Less in Q3

12-23-14

Procter & Gamble and AT&T were among the big-name advertisers that cut their ad budgets in the third quarter of 2014. Kantar reports that P&G reduced spending 16.1%, and AT&T cut its ad budget 11.3%. Advertising from the top 10 companies was down 1.7% through September. A year ago, ad spending was up slightly.

The automotive category experienced the biggest decline, down 4%, coming mostly from dealer groups. Kantar also says the top 100 advertisers, which make up nearly half of the total spent on advertising, increased 1.3% through September.

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National Brands Go Local To Brand Online

A new emarketer report says national companies are looking to local communities more and more to reach the consumer. And they are using digital. eMarketer analyst Lauren Fisher says ?Local search, mobile devices, hyperlocal communities and daily deals are gaining popularity with consumers. As the go-to digital sources for local information, each offers on-demand access to community news and information and provides brands a distinct way to engage with US consumers on a local level.?

"In the past, a combination of mass media and traditional local advertising was enough to draw consumers toward a national brand?s local store or service. But as the internet and mobile devices whet consumers? appetites for immediate and relevant local information, national advertisers are also looking to local online advertising to reinforce their local brand presence.

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Emmis to Extend Big Brands With Jelli

Emmis has announced a partnership with Jelli to offer five online radio stations to fans that connect with Facebook's new music platform. Today at f8, Facebook's developer conference, Jelli announced that it has integrated with Facebook to make listening more social. Jelli will take some of Emmis most well known brands and extend them online. HOT 97 in New York, POWER 106 in LA and RXP will be branded and launched via the Facebook Platform and listeners will have 100% control of the music played.

With the announcement of Facebook's new music launch, HOT 97, Power 106 and RXP will now host five customized stations where listeners will have 100% control of what is played and when it is played. Stations include Hot97, Hot97 Throwback, Hot97 Funk Master Flex, Power 106 and RXP.   "This gives our listeners non-stop new music and it gives Emmis back-end metrics to see which songs are really resonating," said Jimmy Steal, Emmis Vice President of Programming.

With Jelli, every song is chosen by a group of listeners in real time.  The social functionality brings listeners together in a fun social atmosphere. Users can chat with other listeners, vote for what they want to hear and "rocket" their favorite songs to the top of the playlist ? all while sharing their music with their Facebook friends.

"Emmis has the strongest brands and communities in radio with HOT 97 in New York, POWER 106 in Los Angeles and RXP online," said Mike Dougherty , CEO and founder of Jelli.  "We are honored to help make these communities more social and engaged by combining their strength with the power of Facebook."

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What Brands Are Leading the Q3 Advertising Charge?

The new Katz report highlighted several key advertisers who are showing an increase in spending on radio. In our interview Gray was sure to mention Burger King quite a few times also stating the burger chain made some significant purchases in markets 76 and lower. It's interesting to note that McDonalds is not mentioned in the top 10. Historically McDonalds had been a huge radio user. Other key advertisers for radio continue to be: Walmart, Comcast, Dodge and American Family Insurance. The Katz report also says there is increased momentum in the use of online, on-demand, mobile and digital broadcasts, which provides broadcasters with the ability to secure a greater share of digital dollars.

92% of 2010's national advertisers have returned to radio this year, a number of those advertisers have ramped up their spending in the third quarter, including Burger King, Sears and T-Mobile. Below are the largest individual advertisers within each core category for the third quarter.

These top seven categories represent 85% of all National Spot Radio revenue. Specific brands listed below.
#1) Retail, #2) Automotive, #3) Finance, #4) Telecom/Utilities, #5) Fast Food, #6) Professional Services, #7) Entertainment.

In the Retail sector, the top spenders on radio are:
Safeway, Walmart, Supervalu, Mattress Firm, Home Depot, Kohl's, Target, Sears, Staples
In Automotive:
O?Reilly Auto Parts, Dodge, Chevron, Chrysler, Jeep, Exxon Mobil
In Finance:
GEICO, Amer. Family Insurance, Allstate, PNC Bank, JP Morgan Chase, US Auto Assoc, Citibank, Farmers Insurance, Navy Federal Credit
In Telecomm/Utilities:
Verizon, Comcast, T-Mobile, US Cellular, AT&T, Comcast Cable
Fast Food
 Burger King, Panera, Bonefish, Denny?s, Sonic, Taco Bell, Jack in the Box, Buffalo Wild Wings, Dunkin? Donuts
Professional Services
 Horizon BCBS, Kaiser Permanente, Portfolio Media Mgmt, Cephalon, LCA Vision, Ace Cash Express, Living Essentials
Entertainment
Sony Pictures, Fox Broadcasting, ESPN, USA Network, Walt Disney Motion Pictures, Half Price Books, NBC

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