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New York, 20th Jul 2015 – The advertising market showed some positive signs by growing +2% in the second quarter, despite a flat June, global advertising data company Standard Media Index (SMI) reported today.
While the digital sector rang up +14% growth in June, the absence of ad dollars from last year’s 2014 FIFA World Cup affected major television networks on a year-on-year basis. TV revenues dropped -6% compared to the same period last year. SMI estimates that last year’s sporting event generated over $500 million in television ad revenue in June and July.
“June’s overall numbers were negatively impacted on a year-on-year basis by last year’s World Cup. However, there are some underling factors that are contributing to a deeper malaise,” said James Fennessy, SMI’s chief commercial officer. “Soft ratings and ongoing measurement issues continue to impact television’s results and we also saw a slight slowdown in the explosive growth from digital, which points to marketers focusing more closely on return on investment.””
Television dollars were down -5% year-on-year for the second quarter, in line with falls in across the board C3 ratings, signaling that this year’s TV offerings have failed to replace the large advertising expenditure that was committed to last year’s World Cup.
SMI’s latest data highlights the fact that ad spending has remained in line with consumer-spending figures recently released by the Commerce Department, which showed that consumer-spending grew by +2.6% in Q2 after shrinking in the first quarter. The figures indicate that as consumers spend more, advertisers are chasing them in the hope of capturing more of their hard earned dollars.
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.