Several TV ad sales execs — who have already weathered billions in lost ad revenue since March as live sports and Hollywood productions remain on lockdown — say they are concerned that the biggest ad sales revenue hits are actually yet to come. That’s because no one knows when regular business operations will be able to resume, and more importantly, whether consumers will return to their pre-pandemic spending habits — particularly the 30 million people who have filed for unemployment since the coronavirus began to shut down the country.
October’s national ad market was up 7% over the same period a year ago, according to Standard Media Index. Breaking down the national TV category, broadcast networks dropped 7% in media spend, with cable networks 5% higher. Digital was up 17%.
The second-quarter earnings season of 2017 has wound down for media companies and broadcasters. Here’s a roundup of the developments that highlighted the reports: OTT, retrans, subscriber losses and ad revenues under pressure.
Interpublic research arm Magna has upgraded its U.S. ad revenue forecast and now predicts that media owners’ net advertising revenues will grow 6.3% to $179 billion in 2016, the strongest growth rate since 2010.
A year that started off with promise ended with a clunk, with advertising revenue growing at the slowest rate in six years. Total 2014 spending was up 3% percent, but when you take out political spending and the Winter Olympics, that number shrinks to just 1.6%, or $161 billion, according to Magna Global.
CEO Dunia Shive says the TV station group’s core revenue should be up 9% for the year in addition to the more than $55 million in political ad money. She sees growth ahead next year, but not quite as strong as in ’10.
Speaking at UBS’s 38th annual global media and communications conference in New York, CBS Chief Research Officer David Poltrack said that network television advertising revenues are up 6.2% in 2010, up from his previous forecast of 5%.
It projects that media suppliers around the world will grow their advertising revenues by 5.4% next year to a total $412 billion. Video retains its dominance around the world, with more than 40% of advertising — a total of $169 billion — relying on TV in 2011.