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By Catholic Online (CALIFORNIA NETWORK)
12/8/2015 (3 years ago)
CALIFORNIA NETWORK (https://www.youtube.com/c/californianetwork)

Drop-off in viewers chief reason for downturn in TV adverts blamed

The TV commercial - that distillation of everything that is effective in film making boiled down to its essentials may in fact be an endangered species. An annoyance to many TV viewers - who have yet to realize that commercials are in fact the best and most creative part of television these days - the traditional TV "advert" is losing ground to digital ads.

The TV commercial - that distillation of everything that is effective in filmmaking boiled down to its essentials may in fact be an endangered species.

The TV commercial - that distillation of everything that is effective in filmmaking boiled down to its essentials may in fact be an endangered species.

Highlights

By Catholic Online (CALIFORNIA NETWORK)
CALIFORNIA NETWORK (https://www.youtube.com/c/californianetwork)
12/8/2015 (3 years ago)

Published in TV

Keywords: TV advertising, digital advertyising, cable channels, ad revenue


LOS ANGELES, CA (Catholic Online) - Seen on the Internet as well as many other platforms, the ascendance of digital ads is yet another sign that interest in traditional network TV is rapidly dying off.

In a study conducted by Magna Global, the popularity and effectiveness of TV ads may have peaked in 2012 at 39.7 percent. The study estimates that TV ads will become largely irrelevant by the year 2018.


There is no denying that TV advertising is losing steam. Global television advertising revenue fell year-over-year as digital advertising surged once again.

There is no denying that TV advertising is losing steam. Global television advertising revenue fell year-over-year as digital advertising surged once again.


It is too soon to sound the death knell for TV advertising, as there will be a definite uptick in network TV viewing in 2016. There will be the U.S. presidential elections, the Olympic Games and the UEFA Football championship in Europe to keep consumers interested.  

There is no denying that TV advertising is losing steam. Global television advertising revenue fell year-over-year as digital advertising surged once again.

Along with a separate study from ZenithOptimedia, the two new studies seem overly optimistic for digital advertising. There is no question that many TV cable channels have been losing subscribers lately - even ESPN, down seven million subs over the past two years.

Networks such as Viacom, CBS, Disney, Comcast, 21st Century Fox, Time Warner and Sony have all declined since August.

Magna Global reports that TV ad sales will fall 0.1 percent in 2015 to $193 billion while digital will rise 17 percent to $160 billion.

"This suggests an underlying slowing trend caused by decreasing TV viewing that is no longer fully offset by CPM inflation, in most markets," Magna Global reports.


"ZenithOptimedia predicts that overall advertising for all media will grow 4.7 percent globally in 2016 to $579 billion. North America will grow 3.8 percent and 'fast-track' Asia will lead all other regions at 9 percent growth," according to the Hollywood Reporter.

The largest ad market globally remains the United States with $182.6 billion in all categories in 2015, followed by China with $74.3 billion. Japan, the U.K., and Germany round out the Top Five.

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