Labels slash TV ad spending
11:47 | Thursday March 22, 2012
By Paul Williams
Record company TV advertising budgets were cut by 34.1% last year to £38.5m, despite high-spending campaigns for the likes of Alfie Boe, Andre Rieu and Joe McElderry.
The huge dip in spending is revealed in figures compiled by ESP Marketing, a company providing TV media analysis specialising in music. It amounts to a £20m fall-back in money paid out by labels across the year, while spending was just half the level it was in 2008.
All four major record companies recorded double-digit falls in their spending with Universal’s dropping 29.5% to £14.2m, Sony’s down 37.8% to £8.3m, Warner’s falling 46.0% to £5.8m and EMI 19.6% lower at £5.3m.
However, there were still a number of TV ad campaigns running into six figures and, for two artists, seven figures. These were both Decca acts, Alfie Boe and Andre Rieu, who were both subject across the year to TV budgets of around £1.1m. In each case spending covered more than one release.
XL act Adele’s 21, the year’s biggest-selling album, accounted for the highest spend for an individual title with some £646,000 paid out on advertising during 2011, according to ESP Marketing’s research. Other acts attracting big spends included Decca’s Joe McElderry, Reprise/Warner Bos’s Michael Buble and Def Jam/Mecury’s Rihanna.