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Media Agencies: Making The Call

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Where The Media Dollars Go, Plus The Numbers On Telephone-Company Ad Spending
With the recent spate of mergers and acquisitions (Bell Atlantic-GTE, SBC-Pacific Telesis, MCI-WorldCom, AT&T-British Telecom, among others), the telecommunications industry continues to consolidate. In an effort both to distinguish themselves-and their numerous services (long distance, cellular, etc.) from the competition and to show that, even in these changing times, business is still local, telcos spent more than a billion dollars on advertising in the first five months of 1998, a 15 percent increase over the same period last year. MCI led the way, spending $235 million, a 32 percent rise. The largest increases, according to Competitive Media Reporting: No. 11 Sprint Cellular ($32 million, +144 percent); US West ($28 million, +136 percent); Pacific Telesis Group ($33 million,+123 percent); and AT&T Wireless ($77 million, +86 percent). Five companies in the top 15 spent less this year than last: No. 12 Primeco Personal Communications (-24 percent); No. 14 Bell Atlantic Mobile (-20 percent); No. 10 Cellular One (-18 percent); No. 9 BellSouth (-5 percent); and No. 13 Bellsouth Mobility (-3 percent). -Mark Lang
THE BIG PICTURE - Where the media dollars go:
Spot TV: 19.1%
Cable TV: 8.1%
Radio (includes network and national radio spots): 3.4%
Syndicated TV: 3.5%
Network TV: 22.2%
Outdoor (Adweek and OAAA estimates): 2.7%
Newspapers (includes national newspapers): 23.3%
Sunday Magazines: 1.3%
Magazines: 16.4%
THE BREAKDOWN
NEWSPAPERS (includes national newspapers):
1/98 - 5/98: $7.41 billion
1/97 - 5/97: $6.81 billion
NETWORK TV:
1/98 - 5/98: $7.07 billion
1/97 - 5/97: $6.35 billion
SPOT TV:
1/98 - 5/98: $6.06 billion
1/97 - 5/97: $5.47 billion
MAGAZINES:
1/98 - 5/98: $5.23 billion
1/97 - 5/97: $4.87 billion
CABLE TV:
1/98 - 5/98: $2.58 billion
1/97 - 5/97: $2.32 billion
SYNDICATED TV:
1/98 - 5/98: $1.10 billion
1/97 - 5/97: $.99 billion
RADIO (includes network and national radio spots):
1/98 - 5/98: $1.09 billion
1/97 - 5/97: $.96 billion
OUTDOOR (Adweek and OAAA estimates):
1/98 - 5/98: $.86 billion
1/97 - 5/97: $.79 billion
SUNDAY MAGS:
1/98 - 5/98: $.42 billion
1/97 - 5/97: $.41 billion
MEDIA SPENDING:
1/98 - 5/98: $31.82 billion
1/97 - 5/97: $28.97 billion
THE BIG SPENDERS: Media spending in billions
Rank ..... Spending: Jan. - May 1998 ..... % change vs. 1997
1. Cars and light trucks, factory sales and leasing: $2.98.....+8.2
2. Cars and light trucks, dealer sales and leasing: $2.36.....+9.8
3. Home and building retailers: $1.32.....+2.2
4. Financial products and services: $1.17.....+19.3
5. National restaurants: $1.16.....-4.9
6. Telephone companies and utilities: $1.09.....+15.3
7. Motion pictures: $0.78.....+10.9
8. Resorts and travel accomodations: $0.59.....-2.1
9. Prescription medicines: $0.48.....+32.5
10. Public transportation: $0.42.....+5.1
TELEPHONE COMPANIES AND UTILITIES: Media spending in millions
Rank ..... Spending: Jan. - May 1998 ..... % change vs. 1997
1. MCI: $235 ..... +31.9
2. AT&T: $117 ..... +1.2
3. Sprint: $116 ..... +2.2
4. AT&T Wireless: $77 ..... +86.3
5. Bell Atlantic: $37 ..... +66.4