Digital Media, Television Buoy U.S. Ad Market In January
Advertising demand overcame economic uncertainty to surge upwards in January, climbing four percent year-over-year in Standard Media Index’s (SMI) data. The advertising spending data provider attributed the market’s positive performance to television, up one percent, and digital media, up 16 percent year-over-year.
Within the television sector, broadcast advertising revenues climbed nine percent, year-over-year, as the networks’ programming generated strong ratings. However, cable television’s advertising slipped three percent.
Digital commanded 27 percent of the total ad market in January, up three points year over year. Advertising was up across the sector, with social media (56 percent), video sites (39 percent) and internet radio (29 percent) showing the most significant jumps compared to last year.
Out-of-home advertising also returned a year-over-year increase in January of 11 percent, while newspapers slipped 17 percent and radio declined 16 percent.
“January’s results are encouraging given current market uncertainty,” says James Fennessy, SMI’s chief executive officer. “Improved ratings, driven by the outstanding performance of the NFL, have delivered healthy growth for major broadcasters, even with a slight dip in ratings for the month. Cable hasn’t been as fortunate as revenue declines are tracking closely with softer ratings. Digital continues to deliver healthy double-digit gains and, while this growth looks to be mostly organic, there is little doubt that the print and radio sectors are being negatively impacted. The one other bright spot is out-of-home advertising, which continues to build on the great momentum generated in late 2015.”