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Marketers Increase Ad Spending In Q2; Growth In Digital And Primetime TV


By: BY H.B. DURAN | [a]list | July 23, 2018

Marketers Increase Ad Spending In Q2

The national advertising market gained five percent in the second quarter, led by digital platforms and cable TV, according to data provided by Standard Media Index.

Marketers poured their budgets into digital platforms in the second quarter, increasing spend in the category by 12 percent. Out-of-Home spending wasn't far behind with an increase of nine percent. National TV and radio experienced modest drops of one percent each, while print declined 22 percent.

The Telecommunications industry was the largest spender in the second quarter spending two percent more year-over-year (YoY) across platforms. The automotive industry increased its overall spending by 10 percent YoY but 12 percent less on TV than the first quarter. Similarly, Quick Serve Restaurants increased YoY spending by 23 percent across all platforms but just three percent more than the first quarter.

National TV revenue declined in the second quarter due to a 3.4 percent drop in the average paid unit cost for a 30-second commercial.

"As upfront season comes to a close, the industry now needs to quickly move its attention to the Scatter market," James Fennessy, CEO of Standard Media Index said in a statement. "In Q2, revenue from the Scatter market grew by 11 percent YoY while revenue from Upfronts fell four percent and Direct Response advertising remained flat."

Primetime Original Programming led the way in terms of TV ad revenue this quarter. Of all the TV networks, 21st Century Fox grew the most, gaining nine percent revenue thanks to shows like Empire and The Big Bang Theory. At $322,659, TV spots for Empire were the second most expensive after AMC's The Walking Dead.

June marked the premieres of several talent competition programs across NBC and Fox. New episodes of America's Got Talent, World of Dance, So You Think You Can Dance? and The Four: Battle for Stardom earned $76.9 million combined.

Excluding the World Cup, revenue from Sports fell 6.6 percent YoY in the second quarter. Standard Media Index attributes this drop to changes in basketball schedules both at the professional and college level.

"This year's NBA Finals only lasted four games compared to five last year, causing the series to earn 12 percent less revenue YoY," noted the analyst firm. "However, when looking at average revenue per game, this year was up 10 percent, having brought in $45.7 million per game for ABC."



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