Per-transaction fees and resistance by walled gardens are hampering the development of tools to streamline the complicated world of buying and selling spot TV advertising.
A user’s guide to automation development at Hudson MX, ProvantageX, Videa and WideOrbit.
The total growth is pegged to political advertising, while the drop in core will be due mostly to dwindling dollars from automotive, retail and quick service restaurants. That’s the consensus of station groups and industry watchers surveyed annually by TVNewsCheck.
A dismal first quarter had auto spot spending down nearly 10% compared to the prior year because auto ad spending moves in lockstep with actual sales of cars and light trucks and those have been trending down. However, even though auto sales are down, they are still at a pretty high level and if 2019 results come in at 16.9 million as predicted, that’s up over 60% in 10 years.
DOJ antitrust chief Makan Delrahim slots the event for May 2-3 and says the event may result in Justice changing how it looks not only at mergers, but also at spot advertising and retrans.
Publicis Media is making a $50 million local TV buy for one of its most challenging clients using an automated platform system, involving 90 markets across the country. This is just one of the strategies to improve the automated ad buying process to increase the relevance of local spot discussed at TV2020 on Wednesday.
Wells Fargo analyst Marci Ryvicker sees station groups’ core advertising, which excludes political, growing 2% next year. In addition, she says broadcast stocks are also likely to get a boost from the FCC’s easing of the media ownership restrictions that will lead to further consolidation of the industry.
S&P Global’s 34th annual Radio and TV Summit last week addressed a range of topics, including the lack of consolidation following the FCC’s spectrum auction; the state of retransmission consent and reverse comp; and an overview of the good and bad news coming from the spot TV ad market.
Lower-than expected spending by the Trump campaign is causing some groups to reforecast their political revenue and depressing stock prices. More important, it highlights the need for adoption of ATSC 3.0. The new broadcasting standard will allow stations to offer zoned, targeted and interactive advertising and maintain their lion’s share of the political advertising dollars.
More and more stations and groups are taking the initiative in securing and growing the crucial auto category at a time when stations’ share of ad marketing dollars are not keeping pace with booming auto sales as they have in the past. One tack is an increasing interest in programmatic buying and selling, while another is to aggressively follow auto dollars into the digital realm. Publisher’s Note: Deep Dive is a new, branded feature of TVNewsCheck.com. It is offered free today as a sneak preview of the kind of in-depth content soon to be offered in the our Premium Member Center. To read the first part, click here.
The old rule of thumb that TV station auto revenue will mirror the growth (or decline) of auto sales no longer seems to be holding true. Experts say it’s due to lower overall auto spending on advertising, an unmeasured shift of money to mobile and continuing hard-nosed competition from the scores of basic cable networks. In Part II, which will post Aug. 26, we’ll look at how some broadcasters are working to rev up their auto business. Publisher’s Note: Deep Dive is a new, branded feature of TVNewsCheck.com. It is offered free today as a sneak preview of the kind of in-depth content soon to be offered in the our Premium Member Center. Details? Stay tuned.
Core spot spending will remain flat in the third quarter, according to the latest from Wells Fargo Securities, and the reason is not clear. The good news is political spending will start pouring in in the quarter with Nexstar and Sinclair the chief beneficiaries among the pure-play station groups.
Those percentages, from Matrix Solutions, are a marked improvement over the firm’s first-half figures and the 4.5% core growth is tied directly to continued strength of auto advertising. Matrix President D.J. Cavanaugh: “Obviously, political is driving this business right now — some might argue that it’s driving it crazy — but even when you take political out, 4.5% growth is pretty healthy, particularly in this economy. I think it bodes well for the business.”
Heavy political spending and the recovery of the auto market account for the growth in the six months ending June 30, according to actual sales data collected by Matrix Solutions. Auto was up 18.4% with dealer associations contributing a 24.3% gain. But many other categories sunk. Packaged goods and telecommunications were off 11.36% and 10.06%, respectively.