The Numbers are In: SMI's Ad Spend Trends to Watch

NonNational Television includes Spot TV Syndicated TV and MSO Localamp160Our January 2017 findings include a growth rate of 5 yearoveryear in US media spend This uptick is significant as it occurred in a historically slow month during a nonelection nonOlympic year marked by economic and political uncertaintyIntrigued by this development we have highlighted five trends to watchDigital ad spend continues to experience single digit to low double digit growthLinear TV remains a powerful and reliable driver of ROIThe Trump Effect on TV assumes many shapes and formsIncreased competition for Sports ad dollarsOutofHome a transformed industry becomes highly relevantDigital Growth Continues at a Cautious PaceNo one can argue that Digital and mobile are central to the consumer journey and are key drivers of the marketing arsenal With that said it is also clear that the days of steady 1520 revenue growth for Digital as an industry are gone for now Even Facebook and Google have been adversely impacted by the broader industry issues Despite a 37 YoY revenue growth rate for Facebook and 10 YoY revenue growth rate for Google when looking at top 11 media companies by volume of spend Google39s share was down 2 percentage points and Facebook share was down 1 percentage point according to our dataIn 2017 we expect marketers to look closely at digital attribution and spend as the industry works to solve its widelypublicized issues including unreliable metrics ad blocking viewability etcTraditional TV Delivers Reliable ROI With the interplay between CMO39s and COO39s more frequent and intense than ever ROI and ROAS return on ad spend data become the indisputable holy grail With attribution optimization and data intelligence taking center stage TV linear television in particular provides verifiable results to marketers and their agenciesAs you can see from the chart below eight of the ten top national television advertisers by volume showed yearoveryear growth in ad spend The rationale for this shift back to television varies by category amp8211 but in a culture that encourages innovation these smart marketers are seeing through data intelligence and ROI metrics that the medium worksTop 10 National TV Spenders by Ad VolumeThe Trump Effect on TVIn January we saw that the Trump Effect continued to positively impact ad spend across cable and broadcast news 103 yearoveryearamp160 With the increase in revenue it is not surprising that the average unit cost is up significantly across all dayparts especially in cable amp8211 FOX is 48 CNN is 288 and MSNBC is 501The Trump Effect on late night is being dubbed by some as the Golden Age of Late Night as it is an area where his attacks on the media are actually beneficial On broadcast CBS is seeing Late Night with Stephen Colbert grow in ratings and NBC is seeing big payoffs for Saturday Night Live Unit costs for the show have skyrocketed with a 30 second spot on January 14th Felicity Jones sketches averaging 111045 which is up 86 versus yearagoIncreased Competition for Sports SpendSports programming particularly live sports programming is the one reliable genre that keeps feeding linear TV both cable 111 and broadcast 63 total day yearoveryear The question is with so many new ways to consume sports content including mobile tablets OTT social media and VR360i premium video networks must be vigilant to deliver quality priced programming coupled with a marketing strategy that makes it quotmust seequotTelevision networks are up to the challenge and are fortifying their current home field advantage in the sports arena to preserve the continued value of linear televisionOOH TransformationOutofHome has transformed brilliantly through technological innovation mobile convergence and the adoption of digital billboards The change is so dramatic that advertisers are once again considering the medium a strong buy for certain categories of advertisers While OOH was 97 yearoveryear this growth was fueled by a 43 increase in spend from telecom and triple digit growth from QSR39s consumer electronic companies and automotive brands This is a trend to watch as the media type is up for three straight quarters OutofHome embodies many of the benefits associated with digital amp8211 but with maximum size and impact With BIA Kelsey predicting the growing importance of local in an ondemand economy amp8211 there is definitely a place for OOHClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this article are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated bloggersamp160

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The Numbers are In: SMI's Ad Spend Trends to Watch

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