National Advertising Market Gains 8% in First Half of 2018

First Half National Television Resultsamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 At the end of the first half of the year weamp8217re seeing TV Network Groups focus on linear television revenue vs digital rather than the traditional comparison of cable vs broadcast amp160TV Networksamp8217 combined digital revenue for the first half of the year is up 17 but only makes up a small fraction of the income from linearNational television revenue grew 3 in the first half H1 of 2018 to 22 billion however gains were due entirely to the Olympics and the World Cup amp160Excluding the revenue from both of those national TV was down 1amp160 In the first half of the year revenue from the upfront market fell 15 while revenue from scatter grew 183Despite plans by TV Network Groups to reduce ad time the number of 30second equivalized spots increased by 39 in H1 while revenue only grew 3amp160 Meanwhile the number of unpaid spots amp160also known as makegoods or ADUs amp160stayed flat at 04SportsSports programs were standout performers for the first half of the yearamp160 The genre was up 173 thanks to the Olympics and the World Cupamp160 Among TV Network Groups Comcast Corporation was the clear leader in sports this halfyearamp160 Having aired both the Olympics and the Super Bowl Comcast earned 33 of the revenue from TV Sports programmingamp160 Thatamp8217s followed by 28 share from The Walt Disney Company which saw 105 yearoveryear YoY revenue growth on ESPN during the first half of the yearamp160 The third highest revenue earner in Sports was Time Warner at 13 whose Turner Broadcasting channels amp160TBS and TNT amp160gained the rights to air the final three games of the NCAA Basketball Tournamentamp160 CBS aired the Final Four semifinals and National Championship games in 2017The biggest moneymakers in sports in the first half of this year were the NFL which earned 912 million during the postseason and the Super Bowl despite having one less week of games than in 2017amp160 Thatamp8217s followed by the NBA at 858 million the Winter Olympics at 770 millionamp160and the NCAA March Madness Basketball Tournament at 539 millionamp160 All of these figures are ingame onlyEntertainmentRevenue from entertainment programming excluding kids was slightly lower than it was in the first half of 2017 at 07amp160 Comcast Corporation was also the leader in this genre with 19 market share amp160Comcastamp8217s NBCUniversal got a boost from the smashing success of This Is Us which increased paid unit costs by 257 YoY amp160The second largest TV Network Group is the newlyformed Discovery Incamp160 Of the groupamp8217s portfolio of networks HGTV formerly of Scripps Networks Interactiveamp160brought in the most revenue amp160TLC grew the most YoY at 204Rounding out the top fiveamp160largest TV Network Groups in entertainment were Viacom Inc at 13 Time Warner Inc at 10 and CBS Corporation at 10News Cable news saw a spike in 2018 as political woes and partisan debates consumed national attentionamp160 The five cable news networks amp160Foxamp160News CNN MSNBC CNBCamp160and HLN amp160grew a combined 14 YoY in H1 amp160Among the networks MSNBC has been a powerhouse growing revenue by 60 YoY during the first half amp160The next highest growth came from CNN at 15 amp160Excluding sports programming that occurred on these networks here is a look at the revenue growth over the past four yearsMeanwhile broadcast news is down 12 in the first half of the yearamp160 In fact the genre has lost revenue every month so far in 2018amp160 All of the Big Four broadcast networks lost revenue from news programming YoYFirst Half Digital Results Among digital platforms internet radio companies saw the most advertising revenue growth at 55 YoYamp160 Pandora Media grew revenue by 66 and Spotify by 40 while iHeartMediaamp8217s internet radio revenue fell 13Meanwhile social networks grew 48 in the first half of the year largely driven by Facebook and Instagramamp8217s combined 56 revenue growthamp160 Twitter gained 38 YoYamp160and Snap increased revenue by 11Video is the new frontier for digital marketing as advances in consumer bandwidth capacity have allowed the content form to developamp160 Among video publishers legacy and pure digital Google held 20 market share all from its YouTube platform which is down from 24 just two years agoamp160 Legacy publisher Time Warner was close behind 174 driven by its sports propertyHulu 123 Comcast 120 and Disney 101 also broke the 10 share thresholdamp160amp160Of these only Hulu and Comcastamp8217s NBCUniversal properties demonstrated market share growth during H1 2018amp160 NBCUamp8217s performance remained positive in Q2 2018 even without the OlympicsAdvertisers by CategoryAcross national TV the auto industry spent the most on advertising in the first half of 2018 although that figure declined by 4 YoY amp160Among automakers the Ford Motor Company reduced its overall television spend by 26 however the company invested heavily in national TV advertising for its F150 truckamp160 Nearly all of that F150 spend amp16088 to be exact amp160went towards sports programming with 44 specifically dedicated to the NFLThe next largest spenders were prescription pharmaceuticals which increased spend by 11amp160then food produce andamp160dairy 7amp160insurance 13 and entertainment 0Looking at advertiser categories across all platforms each of the top five categories increased spend compared to last yearamp160 The telecommunications industry was the largest spender in the first half of the year increasing 6 YoYamp160 That is followed by autos 6 prescription pharmaceuticals 13 quick serve restaurants 20amp160and insurance 6amp160Among prescription pharmaceuticals BristolMyers Squibb tripled its advertisingamp160 The drug maker put 85 of its ad dollars towards the OPDIVO class of medications used to treat cancer amp160Sixtyeight percent of the OPDIVO advertising was on television 20 was digital 8 was magazinesamp160and 4 was outofhomeMethodologySMI sources its data from the raw invoices from the media agency holding groups to see the actual dollar amounts spent on each ad buyamp160 We work with fiveamp160of the sevenamp160major media holding groups amp160making up 70 of the national TV market amp160and model out the remaining 30 using occurrence data to determine revenueamp160 Market share percentages only include TV networks within our pool of data amp160To provide the highest accuracy the average paid unit cost data only includes data directly from the agency groups it does not include extrapolated numbersClick 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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National Advertising Market Gains 8% in First Half of 2018

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James Fennessy

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