Ad market off to a negative start to year as media agency TV spend falls 5.1% in January
Media agency spend was soft, particularly in television and digital last month causing the market to go down 2.4%, according to the latest figures from Standard Media Index.
The poor start, year-on-year, was driven in part because January 2015 had seen a Queensland State election, with television spend down 5.1% or $11.6m on last year, accounting for most of the 2.4 per cent fall in the market which was down $12.1m, to a total spend of $483.1m.
Among the major TV networks Nine lost revenue share to its rivals, driven in part by the capitulation of the West Indies in the test series, recording 32.3% share (down 1.9%) Seven was up to a 41.8% (up 0.4%) while Ten’s share was up to 25.9% (up 1.5%) boosted by the ratings success of the Big Bash cricket.
For the first seven months of the year SMI figures show Ten at a 23.4% (up 2.6%) most of which appears to have come at the expense of Seven who is on a 39.2% share (down 0.8%) and Nine who was on a 37.4% share (down 1.4%).
In addition to the falls in TV, the weakness in the market was driven by a flat-lining of digital spend in January for the second month in a row with recorded digital spend, among media agencies, growing just 0.1% to $111.149m.
Outdoor and cinema were the two sectors who showed significant growth with outdoor up 8% to $55.2m while cinema was up a massive 22% to $8.2m driven largely be the success of the Star Wars: The Force Awakens franchise. Radio was up 2.2% to $40.3m.
Newspapers saw the collapse of revenue arrest, reporting declines that were not in the double digits, and recording an 8.7% decline nationally to $41.9m, with SMI noting the figures for the metropolitan press market were only down just 3.5%. Magazines, on the other hand, were down 16.3%, recording revenues of just $8.6m last month.
Nic Christensen
How Nine no longer dominates Summer TV is beyond me!
They have just forgotten how to sell it!!!!!!!!
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Advertising spend is essentially static in relation to GDP, and has been for many decades – which means everyone is fighting over the same pie.
New media like Facebook continues to generate huge and growing ad revenue (and so does Twitter despite its rocky times) – making them the increasingly important competitors to traditional media.
So why every time when I turn on the TV do I see a show encouraging me to jump on to Facebook and Twitter? Are broadcasters really willing to trade away their audiences attention for a few tweets and hashtags? It’s hard to imagine a more distracting experience than a never-ending list of videos, gifs and links that friends think are interesting, and yet that’s where TV suggests I go.
Ming-boggling really…
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And the diversion of ad budgets to Facebook and Twitter sees all that cash fly out of Australia rather than retaining it with local businesses like the broadcasters.
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Given the platform the BBL gave 10 to self promote new season 2016 shows, February onwards share of the pie will be critical to their share price moving forward. Analysts don’t want them languishing at 18–20 share, a common picture in recent years. All power to them for commanding almost 26 in January but now it’s down to regular programming and they do look thin on the ground as early ratings are showing. .
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Great point from Sandra. Within a couple of clicks people could be on to Youtube or Netflix and the TV gets switched off.
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