In recent years, many have believed that national TV advertising is in a steady decline. These fears were due to the shift of spending on advertising from television to digital platforms like YouTube. But, with the recent numbers from 2015 now coming in, it seems as if those beliefs were exaggerated. According to estimates by Pivotal Research, the ad revenue grew around 6-7% for national TV properties in the fourth quarter of 2015 and about 1-2% for the entire year. Also, after taking out the strong effects of political advertising and the Olympics, it looks as if total advertising grew about 2-3% in 2015.
While there has been a decline in both ratings and viewing totals for most networks, it looks as if that has had a minimal effect on ad spending. For most national brands, television continues to be the most popular option to raise brand awareness, reach a large number of people and have the ability to use video with sound. Leslie Moonves, CBS chief, explained this reasoning to the Wall Street Journal in a conference call.
“Network advertising, if you want to reach a mass audience — and we’ve said this before, not knocking YouTube, but 20 million people watch NCIS. That takes a lot of hits on YouTube,” Moonves said.
More companies dive into digital outlets such as SEO and SEM every day, however, when it comes to the idea that we are facing the end of television advertising, that notion is completely overstated.
The author, Bob Ottaway, is President and Founder of Ottaway Digital. Established in 1999, it has been a pioneer in SEO, digital advertising & social media since 2006.