by Richard Whitman, Yesterday, 6:58 PM
A recent report from Standard Media Index paints a grim picture of TV ad spend.
While the Super Bowl is upon us and plenty of brands are parting with $4.5 million to appear during the broadcast, a recent report from Standard Media Index paints a grim picture of TV ad spend.
TV ad spend dropped 2% year-over-year in the 4th quarter of 2014, with October and November seeing the biggest drops. National broadcast ad spend fell to $4.8 billion and cable dropped to $6.8 billion. Notably, the computer and software category saw a drop of 40% in Q4 but consumer electronics did see an increase of 24%.
Why the drop? Well, one can only surmise that finally, yes, finally, media buyers have wizened to the fact that maybe, just maybe, there's a bit of efficiency and effectiveness to a medium -- um, the Internet -- that allows for the measurement and automated management of just about everything.
While the Super Bowl is upon us and plenty of brands are parting with $4.5 million to appear during the broadcast, a recent report from Standard Media Index paints a grim picture of TV ad spend.
TV ad spend dropped 2% year-over-year in the 4th quarter of 2014, with October and November seeing the biggest drops. National broadcast ad spend fell to $4.8 billion and cable dropped to $6.8 billion. Notably, the computer and software category saw a drop of 40% in Q4 but consumer electronics did see an increase of 24%.
Why the drop? Well, one can only surmise that finally, yes, finally, media buyers have wizened to the fact that maybe, just maybe, there's a bit of efficiency and effectiveness to a medium -- um, the Internet -- that allows for the measurement and automated management of just about everything.
According to Philip Jay LeNoble, Ph.D. of Executive Decision Systems, Inc. in addition to local TV media dollars exiting traditional cost-per-point buying as a result of the rise of programmatic aka automatic buying, local-direct remains as the pillar of revenue for challenged sales departments across the U.S. He asks, "Are stations seeing softness in national as well in regional"? "Time to retune the business model," he adds.
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