Are Advertiser Media Mixes Stabilizing?

Standard Media Index SMIamp160receives all of the actual insertion orders from major holding companies and large independent agencies covering about 70 of national advertiser spending in the US and over 20 other countriesamp160 Their most current complete quarter of data is Q3 2018 so we used this as the basis for our latest analysis of longterm trends by looking back at Q3 2017 and further back to Q3 2016Between Q3 2016 and 2017 ad spend in US television declined 2amp160 However from Q3 2017 to Q3 2018 television was up 1amp160 Political spending was part of that picture but so was the widespread shifts of budgets back into TV by advertisers who saw ROIs declining and realized they had probably gone too far into digitalamp160 Growing awareness of brand safety fraud viewability low reach ad skipping and blocking privacy scandals agency markupsamp160and other concerns about digital were of course also contributing factorsamp160 The spate of newly successful directtoconsumer eCommerce home delivery companies are themselves making heavy use of TV along with digital although they themselves are digital companies The light of TV ROI is hard to hide under a bushel not to mention branding effectsHowever it is also possible that the period of adjustment to the existence of a vast array of digital media types is ending and that we are moving into a stable period in which the shares of major media types in the ad pie will remain reasonably stable from year to yearThis is certainly the picture one gets from the following the SMI table below showing the respective Q3 2017 vs 2018 media type shares hardly changing from year to yearDigital gained twoamp160points and magazines lost one but TV stayed the sameamp160 So did out of home radio and newspapersAs we look ahead what else do we seeamp160 Television is evolvingamp160 In a few years ATSC 30 TV won39t just be as addressable as interactive and as measurable at scale as digital it will all be digitalamp160 Television will have its leanback immersiveness and content quality advantages digital will be striving to catch up in those areas and then augmented and virtual reality will come into both media typesamp160 These changes will favor the health of TV as compared to today39s TV which is still being mostly bought based on sexage tonnage in wasteful rotations and runs of network which cripple ROIThe one category of TV which SMI shows is growing nicely is the quotOtherquot category which includes VOD OTTamp160and other new typesamp160 This category grew 219 more than tripled between Q3 2016 and Q3 2017amp160 From Q3 2017 to Q3 2018 that growth was a solid 14 suggesting that it will continue to grow double digits for some time to comeClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Are Advertiser Media Mixes Stabilizing?

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James Fennessy

Bill Harvey

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Are Advertiser Media Mixes Stabilizing?

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James Fennessy

Bill Harvey

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