TV money slipping to digital


ChartAccording to a report from Deadline Hollywood, a key research group has downgraded its prediction for total television and cable advertising results in 2014, and says the lost cash is heading online.

The ad result scorekeeper is MoffettNathanson. It has knocked broadcast down from a 5% to a 2% gain, and national cable from a 6% to a 5% gain. And that is despite an anticipated flood of political advertising.

Meanwhile, almost all the measureable advertising growth there is – 98% of it – is being swallowed up by online, based on Q2 results. The research company’s Michael Nathanson said that broadcast was actually down during the same period, and cable improved by less than 4%.

The film industry, much of which has ties to big broadcast companies, was part of the problem this year, according to Nathanson – a weak summer at the box office suppressed movie advertising.

The odd-year downslope for TV will be in full effect in 2015, with total TV ad sales expected to fall slightly while local television stations take a 5% hit and the networks bleed away 3%.

RBR-TVBR observation: Competition with digital is the new reality. One of the best ways to deal with iot is to participate in it. Make sure your company has solid online content and works every day to improve the ability to monetize it. And don’t forget to use your broadcast assets to promote your online assets, a key advantage over internet-only properties.