Broadcast Spending Down, Digital Broadcast Rising, Says Matrix

Viewers are changing their TV-watching habits, and advertisers are right there with them.

According to a half-year report from media ad sales company Matrix Solutions, total broadcast spending by advertisers is down $3.8 billion year-over-year, which means a 0.83 percent decline. Digital broadcast (all spending for broadcasters’ local affiliate online properties) is up $243 million, which is a 13.21 percent increase. By the way, digital broadcast includes both video and display ads. The report doesn’t break them out by ad type, but considers the platforms as a whole.

The biggest categories for digital broadcast spending are in services, automotive, medical, and home improvement. Services charted $50.5 million in spending for the first half of 2018. Nearly every category in digital broadcast showed improvement, with an average growth of 13.03 percent when excluding political campaign spending.

The growth of digital broadcast reflects not only a change in viewing habits, but a more precise way for advertisers to reach their target viewers.

“Broadcast is still a viable medium for advertisers, but advertisers are becoming more adaptive to campaigns that package linear alongside non-linear channels,” explains Mark Gorman, CEO of Matrix Solutions. “It casts a wider net amongst audience members with more detailed measurement in an era where brands are shifting their interests in advertising spots to impression-oriented delivery. Digital broadcast offers the best of both worlds to complement linear advertising, and our research validates that opportunity as it’s the platform that has netted the most growth in comparison to last year.”

The report also looks at national versus local spending, and finds national ads are surging with a growth rate of 4.69 percent, while local ad spend contracted by 2.89 percent.

Matrix got its numbers by looking at a nationally representative $11 billion sample of ad deals that used Monarch, the company’s global ad sales platform. For more info, download “Matrix 2018 Midyear Ad Spend Report” for free (registration required).

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