U.S. Ad Spending Climbs 10 Percent In February
U.S. advertising revenues climbed across all media channels except print in February, reports global advertising data company Standard Media Index (SMI), pushing the total market up 10 percent compared to the same period in 2015.
While television’s ratings weakened in February, strong advertising revenues helped push the sector up five percent year-over-year. This growth was found among cable and other TV segments, as broadcast revenues slipped two percent.
“While February continued to see ratings under pressure, it looks like most of the cable networks have been able to watch a lot of their audience make good through their systems and are starting to book some pretty healthy year-on-year revenue gains. TV continues to prove it’s the most powerful medium for reaching large, easily targeted and engaged audiences,” says James Fennessy, SMI’s CEO. “Advertisers are also seeing that adding video to a TV buy multiplies the effect and ROI of their campaigns and we’re seeing this in the very considerable and consistent growth levels delivered by video on both premium sites and through social platforms. We expect to see this trend accelerate through 2016 as measurement continues to improve.”
The digital sector continues to go from strength to strength, as advertising revenues climbed 21 percent in February year-over-year. Digital’s share of total advertising spending has increased to 27 percent, up three points from the same month last year. In a surprising turn, radio advertising growth in February surpassed digital, up 22 percent, while newspaper and magazine ad revenues saw decreases of 17 percent and five percent, respectively.
Watch for key findings from PPAI’s 2015 Annual Estimate of Distributor Sales to be announced by late spring, with a full report on industry sales and forecasts, top programs and product categories, plus 2015 expenditures for selected media, to be released this summer in PPB magazine.