Downright boffo first quarter for ad spending
U.S. media economy grows 12 percent to start the year
June 3, 2014
It’s been 10 years since the media economy had a quarter this strong.
But before anyone declares advertising is finally healthy, there are a few caveats attached to the numbers released today by MoffettNathanson, a research company.
Its report found that U.S. ad spending grew by what it termed “an amazing” 12 percent during the January to March reporting period, double the growth rate at this time last year.
The bulk of that growth was sparked by two things, the Winter Olympics and a big surge in digital spending.
“So on the face of it, overall U.S. advertising demand looks strong,” notes the report, but it goes on to add a note of caution.
“However, we think it is worth putting an asterisk next to that conclusion given the accelerating pace of online spending combined with benefits from the Sochi Winter Olympics.”
In fact, the Olympics contributed $850 million in advertising, giving a huge boost to broadcast television, which grew by 27 percent during the quarter.
Digital was up by 22 percent, and it accounted for a third of all ad spending during the quarter.
Still, even when digital is removed, traditional ad spending was still up 8 percent during the first three months of the year.
That’s a much-needed positive for the media economy, which had a fitful 2013. While digital continued to grow at a rapid rate, other media stalled or declined, including magazines, newspapers and radio.
Even television had a lackluster year, with the lack of political ad spending hurting spot TV and broadcast suffering from steep viewership declines that limited the number of ratings points available for sale.
MoffettNathanson says there is still strong demand for television, but it’s more limited than in the past.
“We think TV ad spending trends will remain in focus as money continues to move to both digital and must-have, live events,” says the report.
“As such, the risk is that scatter volumes for non-essential opportunities continue to disappoint in the future.”
The picture is less rosy for other traditional media. Radio and outdoor had decent gains of 2.6 percent and 1.3 percent during the quarter.
Meanwhile, print continued to struggle. Consumer magazines were off 3.3 percent in first quarter, according to the report, while newspapers fell 4.5 percent.
‘Extant’ returns to a series low
Facebook monetizing booming videos
Record crowd turns out for semifinal win
What’s ailng the U. S. media economy
Dallas: TV builds on furniture spending
Wack job: A Donald Trump rantalogue
‘Hollywood Cycle,’ peddling to nowhere
Weekend TV: Women play for title
Cable overnights: ‘Haves’ hits a high
‘Avenida Brasil’ helps boost Telemundo
Microsoft eases out of display advertising
TV Land yanks ‘Dukes of Hazzard’
Okay start for new drama ‘Zoo’
- Chris Garbutt becomes global creative president at TBWA
- Steve Jun becomes CEO at INNOCEAN Worldwide Americas
- Jon Ruppel becomes creative director at Team One
- Karen Kaufman becomes managing partner at Gain Theory
- Clay Fisher becomes SVP of consumer marketing at The NY Times
- Merope Mills and Paul Lewis rise at Guardian U.S.
- Kurt Hoy becomes content strategy director at Bonnier Motorcycle Group
- Mike Zaneis becomes president and CEO at Trustworthy Accountability Group
This week’s broadcast ratings
This week’s cable ratings
This week’s top movies, songs and books
This week’s daypart ratings
This month’s new media traffic data
This week’s younger viewer ratings
Part-time media buyer job in Lake Bluff, Illinois
Media buyer/planner wanted in Louisville
Assistant media planner opening in Atlanta
Media planner position in Minneapolis
Media buyer position in Sacramento