Real losers in the Digital Age – TV

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Everyone knows money is leaving traditional media for new media.

But just how much money was being shifted and exactly where it was coming from has not been clear, until now.

In a new study, ad tracking firm Standard Media Index finds online advertising has taken a significant bite out of traditional advertising, with $2 billion being shifted from old to new media over the past nine months.

TV is taking by far the biggest hit, the study says.

National television is down $1.1 billion during that span, with broadcast losing $960 million and cable out $140 million.

And other TV, which includes local and syndication, has lost $400 million to digital.

“This is a shift that’s been going on for some time,” Scott Grunther, executive vice president of media at SMI, tells Media Life.

“A big part is continued fragmentation of the media landscape and more options for consumers and viewers. Metrics certainly play a role in terms of accountability. There are a lot of factors.”

In recent months, TV spending has been down sharply, and many hypothesized that the dollars were being shifted to digital. But that wasn’t known for sure.

Grunther notes all the dollars being moved from television aren’t going straight to digital video. They’re being spread out among a number of different subcategories.

“They’re going all over,” Grunther says.

“Some of the biggest growing sectors have been social networking sites and the pure-play digital video sites, such as YouTube. Those sites as a collective bucket have been increasing at a significant clip.

“The other group that’s growing significantly are the players in the programmatic space. They’re growing at healthy year over year increases, although that area did soften up a bit in June.”

Digital is also stealing dollars from other traditional media, though none of the others have been hit nearly as hard as TV the past nine months.

Print has lost $350 million, and radio is down $150 million.

Meanwhile, $1 billion in organic money, or dollars that have been added to ad budgets rather than shifted from other media, has gone to digital.

The one medium that hasn’t been hurt by digital’s gains is out of home. It actually rose 1 percent during the survey period.

“Out of home is one media sector we left out on this, in terms of contributing to digital growth, because they are actually up slightly. They’ve had a slight resurgence of late,” Grunther says.

 

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On July 31, 2015
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