“Back to Normal” for 2019 TV Advertising Spending
2018 was a very good year for TV advertising spending, as the Winter Olympics, World Cup and Mid-Term Elections attracted plenty of ad dollars to the medium. According to Group M’s estimate, total 2018 TV ad spending will be $79.1 billion, a 2.5% increase from 2017.
Without 2018’s stellar events, Group M’s 2019 estimate is an 0.5% increase to $79.4 billion. The 2.0% difference from 2018 to 2019 is to be expected with no Olympics, political campaigns and a positive economy. Digital will continue its significant growth curve, increasing 9% during 2019, to $79.8 billion, thus exceeding total TV for the first time, according to Group M data.
The upside for you, as a local TV AE, is the deck is cleared for more advertisers (and current clients) to take control of the airwaves with their messages and images, as your station should have more inventory available.
It’s important to remember that, as Group M stated in its estimate report, “The line between these two media types [TV and digital] grows ever less distinct, so the caveat bears repeating that nearly everywhere, ‘digital’ includes ad revenue flowing to the IP-delivered services of broadcast TV brands. This amount is rarely itemized, but surely growing.”
The other positive trend for 2019 is from BIA’s US SAM™ survey, which asks small businesses (SMBs) about their 2019 advertising spending plans. Of the businesses surveyed, 35% said they were planning to increase their ad spending during 2019.
The December 2018 article about the survey states, “TV/Cable and radio advertisers show better intentions in increasing their ad spend (approximately 50%).”
Local Advertisers’ Top Three Planned Ad Media for 2019
|
Media |
Large Businesses |
Small Businesses |
|
|
63% |
42% |
|
Video |
42% |
25% |
|
Print (newspapers, magazines, direct mail, flyers and coupons) |
25% |
22% |
BIA, December 2018
Clearly, the local advertising environment will remain competitive, but that should only motivate you to continue to increase your knowledge of the various industries of your prospects and clients and the media, consumer and advertising trends to be found on the Media Group Online Website.
