SMI: Auto Advertisers Go Off the Beaten Track

Outside factors are favorable interest rates for new cars have been extremely attractive new light vehicle sales have been on a steady climb and gas prices have droppedYet if you look under the hood of this category by delving into our data itamp8217s clear the ad sector is providing some challenges for the networks although there has been some improvement in the most recently completed quarterFirst letamp8217s look at auto within the larger context of the Top 10 ranked ad categories when judged according to overall ad spend and how buying habits have changedIn broadcast year BY 201314 eight out of the Top 10 ad categories for cable channels showed revenue growth The same held true for broadcast networks In BY 201415 only three Top 10 cable channel ad categories showed revenue increases only two grew for the broadcast networksAuto was among the sectors that suddenly went negative in 201415 For broadcast networks it averaged a 15 revenue decline during BY 201415 The previous year it increased by a whopping 19Auto exhibited the same upyeardownyear pattern for cable channels but with less dramatic movements a rise of 6 in 201314 followed by a decline of 2 in 201415Admittedly a large part of the decline during the last broadcast year can be attributed to a double whammy that took place in 201314 the World Cup and Winter Olympics in SochiThereamp8217s also been a strong directional current toward digital and that tug was markedly different in 201415 than it was the year beforeWithin TV networksamp8217 digital properties auto revenue zoomed up 28 in 201314 only to decline 2 in 201415 For total digital which includes social media sites video sites such as YouTube and ad networksexchanges auto grew by 26 and then moved up 16 in the same years respectivelyMore recent quarterly information shows that auto buyers are shifting their spending patterns even further The third quarter 2015 was the broadcast networksamp8217 best quarter this year for auto results with an ad spend decline of 4 compared with the same period in 2014 In contrast it dipped 21 in Q1 and 7 in Q2Meanwhile cable networks lost ground with auto revenue in the second quarter but then registered 5 growth in third quarter 2015Not surprisingly given what is happening across the sector total digitalamp8217s auto spend has grown rapidly in 2015 with the best spend results in Q3 up 26 The major networksamp8217 digital assets were a major contributor to this growth which is a real highlight for the networks and is forecast to grow exponentially in the coming yearSome networks have a huge bright spot on their calendars next year the Summer Olympics in Brazil which will be a magnet for auto advertising The challenge for linear television will be to find new and innovative ways of attracting auto advertisers and their customers in an increasingly fragmented marketThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillageMyersBizNet management or associated bloggers

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SMI: Auto Advertisers Go Off the Beaten Track

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James Fennessy

Empowering Women in Media: Insights from Industry Leaders (Video) - By E.B. Moss

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SMI: Auto Advertisers Go Off the Beaten Track

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James Fennessy

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