A recently-released, half-yearly report gives us some interesting insights into the changing habits of the viewing public, and how advertisers are clearly realising and reacting to these changes in their sector.
According to the report by Matrix Solutions, traditional broadcasting spending by advertisers has fallen by $3.8 billion year-on-year, which represents a drop of just under 1%. This is in contrast to spending in digital broadcast, which has risen by 13.21%, translating into an additional $243 million. It should be noted that there is no further breakdown in the spending figures, so we cannot see the figures by ad type, but instead take the platform figures as a whole, including all spending on video and display advertising.
Where are the advertisers spending?
Next, the report shows us where the advertisers are spending their money (and they’ve removed political campaign spending). Although there has been improved spending in almost every digital broadcast category by an average of 13%, the biggest hitter is the service industry, with $50.5 million spent so far in 2018.
The rest closely follow, but not necessarily in order of importance:
Automotive industry Medical sector Home improvement and DIY
Interestingly, the biggest growth rate has occurred in national ad spending versus local, which this time last year was predicted to surge beyond national spending. There isn’t much in it, but it is still significant with national ads growth rate at 4.69%, and local shrinking slightly by 2.89% on average.
Some industry experts suggest that although broadcast is still a ‘viable medium for advertisers,’ the advertising sector are getting faster on the uptake and are beginning to adapt to campaign creation that ‘packages linear alongside non-linear channels.’ The idea is that digital broadcast does deliver greater opportunities, and with more detailed analysis and measurement tools, a real-time, reactive approach is not only possible, but necessary and evidently, successful.