Recent surveys have pointed to the pressure that TV media companies will be feeling as media buyers shift their focus from traditional to new media. But these surveys are just one data point. What does the actual behavior of major media buyers tell us about the future? Standard Media Index (SMI) recently looked at the buying trends and confirms that TV remains a favorite format.
SMI reviewed the spending data of major holding companies such as Aegis and Havas to determine which formats are gaining market share. The firm’s index accounts for over 60% of actual ad spending, not the estimates provided by outside parties. In looking at TV, which captured 62.4% of all ad spending last year, the various segments broke out as follows:
- Broadcast TV 22.9%
- Cable TV 25.8%
- Spot TV 8.9%
- Syndication 2.5%
- Local/MSO/Cable/Satellite 1.9%
- Ad sales house/other 0.4%
The activity in TV media buying resulted in a 6.5% increase over the previous year.
While this trend is positive for the ten largest media holding companies and for TV companies, the researchers noted that by the end of 2012, these same companies held a smaller piece of the media buying pie – only 57.8%. The fragmentation was attributed to fast-growing digital groups. For the year as a total, digital experienced a 15% increase. While TV may be the current leader, the rapid growth of digital will continue to change the marketplace.
To learn more about Heavy TV Viewers, check out the Audience Interests & Intent Report available at the Research Store on ad-ology.com.[Source: Schulze, Jane. 2012 US Ad Revenue Trends. Standardmediaindex.com. 2013. Web. 19 Mar. 2013]