New York, 21st Apr 2016 – March and the first quarter delivered strong gains for television and digital media’s advertising revenues, a positive result as the industry heads into the all-important upfront and newfronts, according to Standard Media Index (SMI). The total advertising market grew 4% year-on-year in March and was up 8% for Q1 2016 when compared to 2015.
Intensified spending on premium digital properties accelerated in March and drove the digital sector to another stellar month (16%) and ensured the digital sector delivered another outstanding quarter (20%).
Thanks in part to television’s growth in March (2%), the sector also surged ahead in the first quarter of 2016 (4%) as this year’s crucial upfront negotiations approach, which are poised to be the strongest in several years.
“These results continue to reinforce the strength of the major TV networks in an increasingly fragmented market. Large, engaged and measurable audiences that advertisers have confidence in have seen the medium deliver terrific results in recent months. Our data clearly shows a number of major categories, like CPG and auto, moving money back into TV after a lot of experimenting with digital last year. Concerns around viewability and measurement have caused marketers to reassess their mix and we’ve seen television as the major beneficiary here,” said James Fennessy, SMI’s CEO.
“The overall news hasn’t been so great for many of the cable networks with continued soft ratings biting into revenue growth. Hopefully, new total audience measurement initiatives will soon provide a more holistic picture of viewership on all platforms, which should translate into better revenue for everyone in the sector. Premium video and social are the key growth drivers for digital and it’s clear that more reliable measurement make these mediums far more attractive for advertisers.”
SMI recorded slower performances for its other media sectors in March. The magazine, newspaper, out of home and radio sectors all weathered sharp year-on-year percentage decreases in the single to double-digit range.
SMI captures 80% of total U.S. agency spend exclusively from the booking systems of five of the six global media holding groups, as well as leading independents. It reports monthly on actual spend data and is the clearest picture of the flow of dollars across the sector.