Global Ad Spending Up, TV Ad Upfront Falls Short

Global Ad Spending UpThe world continues to change. Reports are out this week that the Upfront period for TV ad spending – both for broadcast and cable – fell more than $600M from 2013. At the same time, eMarketer calculates global ad spending up more than 5.7% this year. The trends continue.

The Upfront shortfall was unexpected, as both the networks and Wall Street were banking on an improving economy to power increases in ad spending. The lower ad spending as analysts scratching their heads and coming up with a variety of reasons, including the migration of ad spending to online, General Motors and Proctor and Gamble reducing their spending for next year, and perhaps a gamble by some advertisers that rates will fall later in the year. I’d also suggest the track record for successful new series has become so low that betting on a new show is almost a fool’s bet.

Total Upfront spending is estimated to total $18.1B worth of commitments for prime-time advertising, approximately a 6% decline from 2013. Some of the lower spending can also be attributed to lower ratings at Fox, ABC, TNT and MTV. Plus, both the Winter Olympics and the recently completed World Cup took many ad dollars out of ad budgets this year.

Meanwhile, eMarketer is reporting that global ad spending will be in excess of $545B this year, with approximately $180B attributed to the US. Of that, 33.8% of the US budget will be spent on digital ads. The amazing thing about its forecast is that in 2014, that percent of US advertising spending will jump to 43.8% – nearly $80B, up more than $20B from this year. That is a large target for the “haves” of the world – Google and Facebook – and the new guy on the block, Microsoft, as it is forecast to surpass Yahoo in total advertising sales.

Big markets are great. Fast growing markets are better. Big, fast growing markets are the best. That’s where you sit. How will you get your share?

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