Market for 2011 TV Advertising Linked to Confidence

On the heels of last week’s conservative outlook issued for TV stations by GroupM, a report  in Broadcasting and Cable gives a more balanced view of the ad market in this sector.  As we’ve been hearing all year, local TV stations say that auto advertisers are back. At the same time, spending on local elections will drive money through the doors in September and October.

Well-known forecasters such as BIA/Kelsey are still looking for an increase in TV ad station revenue this year and expect to see total spending of $17 billion. But there’s also cause for concern.  Station owners remain worried about the economy for the rest of 2010 especially with respect to the turmoil in Europe and how it may affect U.S. credit markets. Senior managers note that marketers are waiting until the last minute to purchase their ads.

And the prospect of 2011 has everyone holding their breath. TV station owners won’t be able to count on Olympic-related or political advertising. Michael Malone writes that broadcast executives realize their survival depends on “better serving viewers and marketers on all platforms, not letting costs get out of whack.” But real and sustained recovery in this market, others note, is connected to consumer confidence.  Once consumers believe the economy is better, they’ll start spending again.

[Malone, Michael. “What It Will Take to Hang Onto Recovery.” Broadcasting & Cable​.com. 28 Jun. 2010. Web. 9 Jul. 2010]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.