Are you ready to sell in what might shape up to be two recovery tracks? We’re all wondering what the economic rebound will be like. While some analysts expect a U‑shaped recovery, others are hoping for a V‑shaped recovery. In truth, says C. Lee Smith, president and CEO of SalesFuel, “We may see two recovery tracks.” This prediction has big implications for TV sellers.
Growing TV Audience
We all know that consumers have been desperate for news lately. In March and during the first half of April, we were all figuring out just how bad the pandemic is. Multiple studies have shown that TV viewership is growing. Even consumers between the ages of 18–34 are tuning in to find out what’s happening in the local market. According to the TVB, “TV is coming back to being a trusted advisor for younger people, for millennials… and it always has for older people. Younger people are now being reintroduced to it.”
TV Sales Are Rebounding
Are marketers willing to buy TV advertising again after the severe cutbacks they made in March and April? TVNewsCheck reports that, for Scripps, “ad pacings are improving sequentially month-over-month.” In addition, some places are seeing “June pacing ahead of May,” which is “unusual” in a typical year. Another TV NewsCheck report indicates that stations are courting new types of advertisers to get them interested in TV. And in some cases, they are going after national spot TV to boost sales. Still, it's likely the that we're looking at two recovery tracks.
Find Opportunity in Two Recovery Tracks
The latest consumer spending data from Verisk Financial shows steep cuts for airlines (-92%), hotels and motels (-84%) and travel agencies (-82%). What does this mean for a recovery? Travel-related spending may well be on a different trajectory than other verticals, says Smith of SalesFuel. Consumers may take short road trips to non-crowded places. Now is the perfect time for tourism bureaus to promote local sites to consumers who are wary about airline travel. Smith also expects to see more of a V‑type recovery for businesses like health care, personal services and gas stations. Business at dine-in restaurants may be slower to pick up as operators scramble to establish environments that meet social-distancing guidelines.
As you work to increase TV media sales, be mindful of the two recovery tracks and the one your clients are on. And use the profiles in AudienceSCAN at AdMall by SalesFuel to show them which consumers are most likely to respond to TV advertising.