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MATRIX LOCAL TV SALES REPORT2013 Spot Recap: Total, -17.4%; Core, -1.2%
Without the heavy political spending, total spot revenue dropped 17.4% in the third quarter compared to last year, according to Matrix Solutions. And core was dragged into negative territory by weakness in a host of categories, including including quick service restaurants (down 42.5%), retail (down 28.5%), legal services (down 22.5%) and telecommunications (down 6.2%). Auto was up nearly 5%.
Feeling the full effect of the political advertising comps, total spot revenue dropped 17.4% in the third quarter compared to the same quarter last year, according to Matrix Solutions.
Core revenue, which factors out political spending, was also down compared to 2012, but only 1.2%.
Matrix is a Pittsburgh-based supplier of customer relations and sales management software. Its quarterly local TV sales report, exclusive toTVNewsCheck, is based on sales data from more than 400 client TV stations. It includes revenue from station-specific websites and digital subchannels.
The auto spending continues to be strong, rising 4.6% in the quarter, thanks mostly to a 21.3% gain from local dealerships (tier 1). That and a 5.8% increase from dealer associations (tier 2) more than offset a 17.6% drop in direct spending from the auto makers (tier 1).
"Matrix has been predicting that automotive will continue to grow through at least 2013 and that seems to be happening," said Matrix President D.J. Cavanaugh.
Another bright spot was services. It was up 50.4% for the quarter.
But core was dragged into negative territory by weakness in a host of other categories, including quick service restaurants (down 42.5%), retail (down 28.5%), legal services (down 22.5%) and telecommunications (down 6.2%).
Healthcare was off 14.1%, despite the roll out of Obamacare.
"Many people are expecting a rise in healthcare advertising, but Matrix hasn’t seen it in 2013, with a few market-specific exceptions," Cavanaugh said.
Broadcast TV Sales, Third Quarter Comparisons
Core revenue, which factors out political spending, was also down compared to 2012, but only 1.2%.
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The auto spending continues to be strong, rising 4.6% in the quarter, thanks mostly to a 21.3% gain from local dealerships (tier 1). That and a 5.8% increase from dealer associations (tier 2) more than offset a 17.6% drop in direct spending from the auto makers (tier 1).
"Matrix has been predicting that automotive will continue to grow through at least 2013 and that seems to be happening," said Matrix President D.J. Cavanaugh.
But core was dragged into negative territory by weakness in a host of other categories, including quick service restaurants (down 42.5%), retail (down 28.5%), legal services (down 22.5%) and telecommunications (down 6.2%).
Healthcare was off 14.1%, despite the roll out of Obamacare.
"Many people are expecting a rise in healthcare advertising, but Matrix hasn’t seen it in 2013, with a few market-specific exceptions," Cavanaugh said.
Broadcast TV Sales, Third Quarter Comparisons
| Category Group | 2013 vs. 2012 | 2013 vs. 2011 |
|---|---|---|
| Alcoholic Beverages | +56.2% | +128.0% |
| Auto Total | +4.6% | +34.0% |
| Auto — Tier 1 | -17.6% | -7.2% |
| Auto — Tier 2 | +5.8% | +80.5% |
| Auto — Tier 3 | +21.3% | +20.5% |
| Department Stores | -1.4% | -27.3% |
| Education | -9.3% | 2.2% |
| Financial, Insurance, Real Estate | -0.9% | -4.5% |
| Food | +5.0% | -7.4% |
| Furniture | +11.4% | +31.1% |
| Government & Organizations | -50.4% | -34.0% |
| Health Care | -14.1% | -5.9% |
| Home Stores & Products | -8.5% | -13.3% |
| Legal Services | -22.5% | -25.3% |
| Leisure & Entertainment | +6.1% | +7.5% |
| Media | -1.1% | -6.1% |
| Non-Alcoholic Beverages | -0.3% | -2.5% |
| Political | -93.6% | -40.8% |
| Products | -6.3% | +8.0% |
| Restaurants — All | -9.5% | -19.7% |
| Restaurants — Quick Serve | -42.5% | -51.0% |
| Restaurants — Dining | +134.3% | +153.7% |
| Retail | -28.5% | -22.8% |
| Services | +50.4% | +88.5% |
| Supermarkets/Grocery | -11.9% | +3.1% |
| Telecommunications | -6.2% | +8.9% |
| Travel | +4.3% | +19.2% |
| GRAND TOTAL | -17.4% | +6.4% |
| EXCLUDING POLITICAL |
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