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InterMedia Insights 6.6.2016

2016 Political Advertising Environment

Hot Media Trends for June 6, 2016

  • The U.S. subscription-video-on-demand (SVOD) market could be nearing saturation, says a new report from Strategy Analytics, a data analytics consulting company. The firm says 2016 will be the first year the percentage increase in SVOD is less than the years before it. Strategy Analytics predicts that spending on services including Netflix, Amazon Prime Video, and Hulu will grow in 2016 by about $1.19 billion, or 22%, to $6.6 billion –slightly slower than 2015 growth of $1.21 billion. “Although the change in increase is relatively small, its direction is extremely significant,” said Michael Goodman, Strategy Analytics’ digital media director. “We put market saturation at 85% of broadband households – similar to saturation levels for pay TV. Within five years, annual growth will fall below 8%,” he added. (Read More on Response Magazine)

  • In further evidence of an improving advertising market, luxury ad spending is on the rise. Luxury companies will spend $10.9 billion in advertising in the top 18 markets, or countries, this year, up 3% from $10.6 billion a year ago, according to a new report by Zenith Media. The forecast includes a boost for TV and radio. That’s stronger growth than in 2015, when luxury advertising increased 1.9% following 2.9% growth in 2014, and the deceleration was a result of market slowdowns, local conflicts and terrorism, the report says. Among the top markets, the U.S. and China are the No. 1 and No. 2 luxury ad markets and attract the bulk of the category’s advertising dollars. The bulk of new ad dollars will be spent on digital media, Zenith says, with luxury manufacturers allocating about $837 million for digital advertising. Television and radio advertising will grow as well, with an additional $26 million being directed to those mediums. Luxury brands are trimming their outdoor and print advertising, although print remains an important medium for luxury ads, particularly for fashion, accessories, watches and jewelry makers. (Read More on InsideRadio)

 

  • In the world of evening news, May 2016 sweeps belongs to NBC. NBC Nightly News with Lester Holt won its 35th consecutive sweep among total viewers and its 4th consecutive sweep in the A25-54 demo. ABC World News Tonight with David Muir took No. 2 spot among total viewers and A25-54 and CBS Evening News with Scott Pelley held No. 3. (Read More on TV Newser)

 

  • NBA’s networks TNT, ESPN and ABC all witnessed higher national advertising revenues so far through three rounds of the NBA playoff season. So far this year, NBA networks through the conference finals have pulled in $436.7 million, up 12% from $390.2 million a year ago, according to iSpot.tv. Top national TV advertisers include: Kia, at $14.3 million; Samsung Mobile, with $14.0 million; Taco Bell, at $11.6 million; State Farm, with $10.6 million; and American Express at $9.7 million. TNT, which aired the most playoff games at 42 contests, pulled in some $257.2 million, up versus the $224.6 million the network pulled in a year ago. This year, Kia, Samsung Mobile, American Express, GEICO and Autotrader were TNT’s top five TV NBA Playoff advertisers. (Read More on MediaPost)

 

  • Looking to re-establish its relevance to young voters, MTV is jumping into the election fray with a campaign that emphasizes issues over the candidates that have been making headlines during this year’s unusual primary season. MTV has a rich 25-year tradition of urging viewers to participate during election years, but new MTV president Sean Atkins says “our audience is more engaged in this one than the last one.” To demonstrate that the network is in tune with how millennial voters feel about politics, MTV’s initiative uses the theme “Elect This.” The issues that are important to young viewers include jobs, the economy, student debt, racial injustice, healthcare and national security. But contrast, they think that the election cycle this year has been more like a bad reality show than a referendum on what’s important to them, Atkins said. The campaign kicks off with a 60 second “Elect This” Anthem that features imagery and footage that highlight the issues that research has found is important to MTV’s viewers. The spot was created by production company Lost Plan. (Read more on Broadcasting & Cable)

Don’t Forget…

Read our 2016 Political Advertising Environment Report

InterMedia Advertising has just released our updated 2016 Political Advertising Environment Report. Learn the steps you can take to ensure your TV advertising is seen during this highly competitive season! Download the Report Here

2016 Political Advertising Environment


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