Total US spending on television advertisement is basically flat from last year, but there is good news for the cable TV sector—as spending has declined for network television, it has actually grown for cable television and for Hispanic television.
More from CNBC:
Network TV spending declined 5.2 percent thanks in part to weaker ratings and a shift in the calendar which moved certain NCAA game ad dollars out of the quarter. It’s no surprise that newspapers continue to suffer: local newspaper revenue dropped 3.3 percent and national newspapers really suffered, down over 9 percent. Another big loser: network radio, down 15.2 percent.
The big winners were media targeting the growing Hispanic market. Spanish language TV saw a 13.5 percent increase in ad spending. Hispanic magazine bucked the downward trend in the magazine business, growing 12 percent. That bodes well for privately-held Univision and Telemundo, which is owned by CNBC’s parent, Comcast.
Cable TV also continues to thrive as advertisers shift their dollars to follow ratings and more niche audiences, with spending up 5.2 percent. Winners here include the likes of Discovery (DISCA), Food Network’s parent Scripps, plus the larger cable-heavy companies like Viacom and Time Warner.
Total spending may be flat, but the top ten largest advertisers spent nearly 6 percent more than a year ago. Procter & Gamble spent more than any other advertiser and 9 percent more than last year. The next two biggest spenders, AT&T and L’Oreal, also spent more than 25 percent more than the year-earlier quarter.
Which companies pulled back their spending? Comcast’s spending declined more than 17 percent largely because its movie studio released fewer films. While automotive was the top-spending category, total spending declined fractionally, with General Motors spending 2.6 percent less though Ford spent nearly 13 percent more.
With cable television advertising thriving due to sports programming and more original programming, it shows that the cable TV industry is not going away anytime soon.