TV Ad Revenue Down Again, Dollars Flow Online

Dollars Flow OnlineReporting on obvious trends sometimes seems too easy. As we have been reporting for some time, more and more advertising dollars flow online from TV. The latest news out last week is the trend continues.

Ad buyers and media analysts are both reporting that there was no upturn in TV ad spending in Q3 2014, even in light of the new television season and political advertising. Specific weakness was cited in the entertainment and automotive sectors.

Standard Media Index, who collects data on the bulk of US ad-agency spending, reports that network TV ad spending was down about 4% in Q3, compared to 1% in Q2. A bit of good news came from cable TV, which grew about 3%, though still down from its 10% jump in Q2.

However, hope springs eternal. Experts are forecasting a growth in the 4th quarter as holiday retail spending invades the airways, but likely not enough to overcome first half weakness.

With these numbers in hand, Jeffries cut its US advertising forecast for 2014, from a 4.7% growth to just over 4%.

Stay tuned as Q3 online ad dollars start to be shared. All indications are it continued its torrid growth.

Whether the reporting is too easy or not, the facts are undisputed. Dollars are moving online, and as we have encouraged before, if you run a website, keep working hard to get your fair, or unfair (but legal) share.

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