Will 2013 Media Spending Survive the Fiscal Cliff?
Compared to a robust year of media spending in 2012 which was the result of the Auto Industry’s rebound, Olympics and Political spending, 2013 looks somewhat bleak. Consumer spending is high right now, but with the Fiscal Cliff looming and an uncertain economy, we expect modest growth at best in media spending next year.
Here’s how the numbers look by medium:
- Spot TV: Expected to grow by 4%
TV ad revenue will grow as the automotive industry continues to thrive. With consumer demand for new vehicles on the rise, automotive and other industries such as telecommunications, restaurants and retail will also see growth.
- Cable TV: 7% Growth per year, for the next 3 years
The lines between Cable TV and Spot TV are starting to blur. Where there used to be a great divide between spending and ratings for both, we’re seeing a leveling of the playing field. We will also see more and more events that traditionally aired on broadcast networks migrating to cable. How else could we explain why Duck Dynasty was the top-rated show on TV last week?
- Radio: Ad spending expected to increase by 2.9%
The growth of radio for 2013 will not be with terrestrial stations, but with online/digital radio platforms.
Pandora continues to gain subscribers, while Apple will launch their answer to online radio in Q1’13, adding to the competition.
- Newspaper: Small .5% increase
Newspaper spending may actually be on the rise in 2013, but mainly due to print’s online products and a “reinvention” of the medium. The local weeklies and dailies still have a unique place in the market, so we anticipate growth there as well.
- Online: Internet advertising expected to grow by 14.6%
The real media growth in 2013 will be online. Brands are already re-evaluating their spending on traditional media and shifting to the world of digital. The increasing demand for video units and innovative display advertising programs will drive much of the growth.
- Mobile/Tablet: Expected to grow by 11.3% from 2012
Retailers are starting to realize the potential of reaching consumers via mobile and tablet devices. Tablets will account for 53% of Mobile ad dollars in 2013, compared to 47% for Mobile handsets.