US TV ad spend fell 5% during the second quarter as marketers continue to shift more of their dollars into digital media.
According to Standard Media Index, which tracks 80% of US agency spend, the absence of ad dollars from last year’s men’s FIFA World Cup affected the major networks this year as TV revenue was down 6 per cent in June compared to last year.
SMI estimates that 2014’s World Cup brought in more than $500m in TV ad revenue last June and July.
Cable spend fell three per cent during the second quarter year-over-year, while broadcast spend dropped ten per cent. Digital ad spending grew 21% compared to last year.
While digital ad spend posted double-digit growth of 14% in June, the sector as a whole failed to grow at the same speed it has in previous months. In April and May of this year, the digital ad market grew at double that rate.
James Fennessy, SMI’s chief commercial officer, said: “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. 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.”
In June, out-of-home advertising experienced its strongest month in the year to date, posting a 16% increase. Radio, magazine, and newspaper ad spend all dropped year-over-year.
