May SMI Report Shows Signs of TV Advertising Rebound

amp160For Upfront spending exhibit 2 Cable showed the greatest improvement from April improving 13 points from April39s decline Broadcast39s improvement was more moderate only 3 pointsFor scatter spending exhibit 3 the situation was exactly reversed Broadcast showed the greatest improvement from April improving 20 points from April39s decline The decline in the Cable scatter market stayed consistent with AprilNote Syndication Scatter is relatively small making up only 15 of total syndication ad spendThe improvement in the market in May was widespread across most key advertiser categories exhibit 4 Only Apparel ampamp Accessories and Travel Services cut spending more in May than April 6 major categories spend almost 300 million more on national TV in May than April showing some increased signs of advertiser optimism CPG and Retail Categories increased their national television spend by over 60 million compared to April Entertainment ampamp Media and Technology added over 40 million each Automotive and General Business added over 30 million eachMarchMay HighlightsAcross all national TV the market was down over 27 billion from MarchAprilMay 2019 and down over 29 billion from SMI39s MarchAprilMay 2020 forecast exhibit 5For all of national TV spending was down 23 from last year39s actual spending and 24 from SMI39s forecastBecause of the lack of sports programming broadcast actually witnessed greater declines for both Upfront and scatter spending than cable exhibit 6 especially for Upfront spending And the greater decline for broadcast is a reverse of JanuaryFebruary where broadcast grew and cable declined leading to broadcast being down 11 billion from last year and 13 billion from forecast Cable is down 16 billion from last year but only 15 billion from forecast Syndication is actually outperforming both MarchAprilMay 2019 and SMI39s MarchAprilMay 2020 ForecastAs previously mentioned COVID19 has materially changed consumer video consumption with the heightened interest in news and shift of viewing time away from professional sportsSMI is estimating that there was over a 16 billion shortfall in sports ad revenue across March April and May exhibit 7 with approximately twothirds of that difference due to Upfront and onethird due to scatterOverall the news programming genre is performing well for both Upfront and scatter compared to MarchAprilMay 2019 amp160In spite of having more available GRPs due to higher ratings the entertainment genre is down 14 compared MarchAprilMay 2019 depressed because of the overall market decline As SMI has shown in their standard releases advertising in Entertainment programming as a share of total has grownAside from national TV SMI has line of sight to ad spending on digital video and social There is interest in the industry in terms of how those media are faring because they have shorter commitment periods and some platforms especially Connected TV have seen dramatic consumption growth since the onset of COVID19From a share perspective MarchApril had witnessed a material change in share for digital video from digitally centric companies and social In MarchApril those platforms commanded a combined 22 share of national media spend up 3 points from 2019 And while spending on digital video from traditional media companies grew slightly that growth wasn39t enough to offset the decline in linear TV spending Those trends continued in May with Linear TV falling to 618 share down nearly 4 points from MarchApril 2020 Social was the biggest beneficiary of linear declines exhibit 8The shift of share away from traditional media companies to digital video from digitally centric companies and social continued for Automotive moving an additional 7 share points to digital video from digitally centric companies and 2 points to social exhibit 9 In contrast Pharma kept share relatively flat in May compared to MarchAprilClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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May SMI Report Shows Signs of TV Advertising Rebound

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James Fennessy

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