posted at 02:50
Author Name: Lara O'Reilly
US TV Ad Spend Down 9% In October, SMI
There is yet more quantifiable evidence advertisers are switching off from TV. Data from The Standard Media Index - which claims to pull 80% of US advertising agency spend from the booking systems of five of the six global media global media holding groups, as well as some independent agencies - shows that television ad spending showed a "Considerable drop" in October, and was down 9% on the same period last year. The bad performance of TV during the first month of Q4 also dragged down the US advertising market overall by 4% on the previous year, SMI says. Cable TV spending declined 7% year-over-year, with the scatter market - where TV ads are sold closer to the broadcast date, rather than the big locked-in chunks of the upfront market - now representing 23% of overall spend, up from 17% in 2013. What this shows is that advertisers are waiting until far later in the day to make their TV advertising decisions and are instead choosing more flexible media. Of all the US titles, advertisers spent the most with the Wall Street Journal, which marked an 80% year-on-year ad revenue increase in October and now has an 11% share of the total newspaper revenue in the region. This week AOL CEO Tim Armstrong told the audience at Business Insider's Ignition Conference that in the past six months something has changed within the TV industry: He thinks digital video advertising is finally starting to suck dollars from TV advertising. Despite the recent drop-offs in spend, TV is still an incredibly valuable and effective platform for brand advertising. A UK econometric study released earlier this year from Ebiquity, commisioned by UK TV marketing body Thinkbox, found that every £1 spent on TV advertising in the UK generates £1.79 in profit for companies, far ahead of the next most effective medium, radio.

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