[opendtv] TV Ad Spending Drops in October | Broadcasting & Cable
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 5 Dec 2014 10:02:37 -0500
Bert
You continue to be concerned about the viability of "the bundle." But the real
challenge for both the broadcast and "MVPD" networks is holding onto the
remaining live audience, which is the primary driver of ad revenues.
Thus, stories like the following are much more important indicators than the
number of cord cutters and shavers.
Regards
Craig
http://www.broadcastingcable.com/news/currency/tv-ad-spending-drops-october/136108
TV Ad Spending Drops in October
Advertising spending on TV was down 9% in October, according to new data from
Standard Media Index.
The broadcast networks showed a 9% decline and cable was down 7%.
"SMI's latest data shows advertisers held back dollars in October which caused
a decline across the market, driven by a slow start to the new TV season. We
anticipate that falling commodity prices will flow through to more money in
consumers' pockets in the coming months and ad dollars will begin to follow,"
said James Fennessy, chief commercial officer at SMI.
With a weak upfront, scatter has become a bigger part of the television
business. For the broadcaster, 16% of revenue came from ads sold in scatter—or
close to air date—compared to 11% last year. For cable, scatter was 23% of
revenue, up from 17% in 2013.
Some categories increased their TV spending, including media, consumer
electronics and pharmaceuticals.
SMI gets its revenue data directly from the computer systems at media agencies
representing about 80% of total spending.
Total ad spending in October was down 4% from a year ago. Digital advertising
continued to grow. Programmatic digital was up 49%, mobile was up 22%, video
was up 19%, display was up 17% and search rose 16%.
So far this year, digital is up 11%.
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