Tuesday, 9 December 2014
"Yet more evidence that Advertisers are pulling money out of TV" - says Business Insider.
Business Insider UK, reports that there is now "quantifiable evidence" of advertisers switching away from TV.
It's based on the US Standard Media Index which pulls about 80% of US Ad Agency spend including the 5/6 Global Networks. In October, it showed a further drop of 9%.
Mightn't sound like a lot, but it is considerable especially in a high sales month like October.
TV viewing declined too, by -4%.
And given that it was October, it's normally the pre-booking period for Christmas which traditionally kept TV prices high. So advertisers are now switching to more flexible media such as online digital video. Digital Advertising grew +11%. Newspapers grew +5%.
So it looks like digital video is now starting to take advertising dollars away from TV. A shift that has been well predicted and in fact, was slow in coming.
Omnicom recommended to clients earlier this year, to switch 10-25% of budgets away from TV onto online video.
The audience has shifted.
Now it looks like Advertisers and Agencies are shifting too.