Marketers Shifting from Broadcast to Cable TV

Kantar Media has just released its measured ad spending numbers for the first quarter of 2013. It’s worth looking at the numbers to see if they coffeeshopreveal any patterns that hint at advertising activity for the rest of the year. So far, overall spending in the formats measured by Kantar Media has remained steady compared to last year but Spanish language media is recording big gains, as is cable TV, national spot radio, and out-of-home.

Kantar Media analysts say that spending has remained flat mostly because 2012 experienced falsely high numbers linked to the Olympics and politics. However, the big growth in cable TV (5.2%)  appears to be happening at the expense of broadcast TV. While some of the 5.2% drop in network TV is a timing anomaly with respect to March Madness programming, there may be a more ominous trend afoot – restaurants and auto marketers are shifting spending to cable TV, to chase their 18 to 49 year-​old audience.  According to Nielsen, broadcast TV experienced a steep ratings drop during this time period. Restaurant advertising, along with local services and retailers, was also linked to the 4.3% increase in out-​of-​home marketing.

In general, telecom, restaurants, and personal care products all represent growth opportunities for media sales companies this year. The Kantar Media report shows that mid-​sized marketers, those in the 101–250 position on their list are increasing their spending the most, by 6.3%. In contrast, small advertisers are cutting back, by 9.2%. It’s important to note that smaller advertisers are ‘more variable and sensitive to the economic climate.’ As the year progresses, these advertisers, which comprise 20% of spending, could open their wallets wider.

As you are selling media this year, have you noticed similar trends?

[Sources: Crupi, Anthony. Ratings Slump Dings Broadcast Sales. Adweek​.com. 25 Jun. 2013. Web. 1st Quarter Ad Expenditures. Kantarmediana​.com. Jun. 2013. Web. 3 Jul. 2013] 
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.