TV Ad Sales Lose to Online in July, Reports Standard Media Index
TV ad spending was down slightly in July, while online video sites soared, reports research firm Standard Media Index (SMI) in its latest findings. SMI creates a comprehensive overview of ad sales by monitoring 80 percent of total U.S. ad spending. Today, it reported that TV ad spending was down 2 percent in July 2015, as compared to July 2014. Broadcast sales fell by 2 percent while cable sales rose by 1 percent. SMI notes that multiple high-profile TV events that month—such as FIFA Women’s World Cup, Special Olympics 2015, and the ESPY Awards—didn't help TV achieve stronger ad sales.
In contrast, SMI notes that digital sales are driving the market, and that online video sites were up 63 percent in ad revenue compared to the previous year. Social media sites grew by even more, charting a 93 percent year-on-year increase. Advertising verticals pumping money into those ads include pharmaceuticals, non-alcoholic beverages, and quick-serve restaurants.
"The digital sector continues to drive the overall market, with social almost doubling its revenues on an annualized basis and video also up more than 60 percent,” says James Fennessy, chief commercial officer at SMI.
Ad spending overall was up 7 percent in July compared to the previous year.
The company finds 35 percent month-over-month growth in the industry, says TubeMogul's senior director of marketing.