Broadcast-television ratings have dropped sharply this season. That, combined with the weak economy and competition from digital media, indicate a bad season for the spring TV ad-sales market, ad buyers and analysts say.
Some of them are predicting that the broadcast networks’ take will be steady to slightly lower in this years upfront, in which TV executives pitch their new shows for the coming season.
More TV ad dollars are expected to move to cable channels, a shift that has accelerated in the past couple of years. But both broadcast and cable television are facing more intense competition from online media, including Web video outlets.
The ratings declines have some marketers rethinking their ad-buying strategies, ad buyers said. Some are expected to shift money to cable channels, they said. While ratings have declined at some cable channels, ad prices on cable tend to be lower than on broadcast TV, according to ad buyers.
In some cases, the Web could take a share of those dollars. “Advertisers have seen a significant shortage of ratings, and some are willing to take some money and move it online,” said John Muszynski, chief investment officer at ad company Publicis Groupe
Publicis’s ZenithOptimedia expects TV advertising to grow just 2.8% this year to $63.9 billion. Zenith expects outlays on network-TV ads to decline 2% and spending on cable to increase 7%
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