TV Ad Revenues Grow Despite Stagnating Reach

source: http://www.marketingcharts.com/wp/television/data-dive-us-tv-ad-spend-and-influence-22524/?utm_campaign=rssfeed&utm_source=mc&utm_medium=textlink

US-TV-Ad-Spend-vs-Audience-Growth-Rates-Q1-2011-Q2-2013Leaving other media out of the equation for the moment, research shows that TV ad spending continues to rise even as audience size remains flat or declining, speaking to the value advertisers continue to place on TV commercials. (A separate MarketingCharts analysis suggests that advertisers are spending roughly $225 per year on each TV viewer, versus $144 to reach each online user.) Indeed, comparing the figures provided by Kantar Media with Nielsen audience estimates reveals that TV ad spending growth continues to be relatively solid amidst an apparent saturation in audience size. The size of the TV-viewing population (Americans aged 2 years and older) has dipped on a year-over-year basis for 8 consecutive quarters – even as TV ad spending growth rates were positive during each of those quarters.

Some of that may be due to TV consumption rates remaining intact. Overall, traditional TV viewing time is inching up, though there are stark demographic differences at play: older segments continue to increase their viewing time, while younger segments are slowly turnin! g away from traditional TV and upping their consumption of online video. (See here for an in-depth look at TV consumption rates for youth, and here for a comparison of TV and online video consumption.)

By: Dr. Augustine Fou Thursday, September 26th, 2013 news

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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