Michelle Clancy | 10-09-2013
Second-quarter TV ad sales revenue in the US grew by 6% to hit $18.4 billion, according to a new report from Kantar Media. This means that TV accounted for 51% of the $35.8 billion spent on media advertising in the period.
Total ad spending for the first six months of the year grew 2% to $68.9 billion.
"Ad spend has now increased for six consecutive quarters and in reaching 3.5% growth for Q2, and had its best performance in a non-Olympic period since the end of 2010," said Jon Swallen, chief research officer at Kantar Media North America. However, he cautioned that the gain may not be what it seems.
"On one side, year-ago spending was deflated by major advertisers who conserved budgets in advance of the Summer Olympics, and this makes current year growth appear larger," he said. "On the other side, there were more NBA playoff games this year, and it generated a sizable windfall of extra TV ad revenue.
"Without these factors, Q2 ad spend growth would have been lower by about one full percentage point," he concluded.
In terms of segment, cable TV spending jumped 14.9% due in part to a larger number of NBA playoff telecasts as well as higher primetime ad prices at leading networks. Network TV expenditures rose 4.9%, with comparisons helped by the extra revenue from a seven-game NBA championship series (versus five games in 2012). An additional benefit came from a timing shift that moved ad money for NCAA Final Four basketball games out of March and into April.
Spanish Language TV spending increased 6.1% in the second quarter on higher budgets from direct response marketers, auto manufacturers and restaurants. Hispanic networks continue to see stronger results than local market Hispanic stations, Kantar said.
Spot TV expenditures declined 3.5% in the period. The reduced volume of political ad spending that regularly occurs in odd-numbered years is becoming more of a drag for local stations as the year progresses. Excluding the political category, spot TV ad spending in Q2 was level versus a year ago.