Reader's Corner

Behind the slowdown in ad spending

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Third quarter ad spending was flat last year, according to Kantar Media, and the big reason why was cutbacks by the top 100 advertisers. Some were making up for money moved to first quarter of last year, when they advertised in the Winter Olympics. But others pulled back for different reasons. A handful of auto manufacturers simply didn't have any big car launches to hype. A few companies are still feeling cautious following the brutal recession. And a couple are moving money from more expensive media, like television, to cheaper ones, such as mobile, which means they aren't spending as much overall. The big question, though, is whether those cutbacks in spending will continue into 2015. There's a chance that they will, as advertisers worry about being caught off guard by another recession. Jon Swallen, chief research officer at Kantar Media, talks to Media Life about the latest spending numbers, what they mean for big advertisers, and why the very smallest advertisers pulled back as well. Read more from Media Life.

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