You can thank the X-Files and the NFL for a particularly strong January, ad-wise, Standard Media Index (SMI) reports. Total advertising spend in the television industry rose a full 1 percent during the first month of 2016.
According to SMI, broadcast TV ad spend grew by 9 percent YOY during January, while cable advertising spend fell by about 3 percent YOY. Television currently holds about 59 percent of total advertising market share.
Besides the re-launch of the classic X Files series and the massive television audience that tuned in to watch Peyton Manning and Tom Brady duke it out in the AFC Championship game (SMI reports the game was viewed by 53.3 million viewers, which was the second largest audience in 39 years), SMI also attributes January’s strong ad spend to a strong scatter market.
“The scatter market had a bonanza month – increasing 16 percent YOY overall,” SMI explained in its press release. “This has come as a result of ratings declines, which has meant networks have for months owed advertisers ‘make goods,’ or free ad time to compensate for the shortfall, meaning the inventory that is available is attracting a much higher price.”
The press release also indicates that the top six broadcast networks had ad sales growths of 10 percent YOY in January, 2016. NBC and CBS both had double-digit raises, while on the cable side HGTV, TBS and Freeform all reported double-digit gains.
It will definitely be interesting to watch how ad spend continues throughout the remainder of 2016, as the market continues to fluctuate and companies shop around for the best place to spend their marketing dollars.
We want to know: What is your network doing to attract the attention of advertisers?