Digital continues to push TV down when it comes to ad spending, with TV spending dropping 4% in September, according to Standard Media Index (SMI). For the broadcast year, TV is also down 4% which is in stark contrast to the 29% increase in spending on digital advertising.
Also, according to SMI:
– Broadcast TV ad spending was down 4% in September and cable was down 5%. Syndication was off 14%.
– Among the broadcasters, the top performers in September were ABC, Univision, and Telemundo. ABC and Telemundo were the only broadcast networks to finish up for the quarter.
– The top cable networks were AMC, HGTV, Food Network and ABC Family. AMC Networks and HGTV and Food owner Scripps Networks were the only cable groups to post gains for the quarter.
– Upfront spending was down 4% overall while scatter spending was down 5%, with a 3% increase for the broadcasters offset by an 11% decline for cable.
– Overall, ad spending was up 6% in September.
– The digital gains were driven by a 105% jump at social media sites, 67% gains for video sites and 56% for Internet radio.
“September’s results again show that a healthy ad market continues to be driven by a robust digital sector,” said James Fennessy, SMI’s chief commercial officer. “Television is experiencing considerable rating challenges and this is definitely flowing through to revenue.”
Major television events like the Republican Party presidential debates and the NFL and college football season kickoffs were unable to boost TV network revenues enough to deliver gains. “The hope is that new season programming will drive audiences back to the traditional networks but we haven’t seen this just yet,” Fennessy said.
