In a recent analysis by the Standard Media Index, it was revealed that while U.S. television advertising revenue saw a 2% increase in November compared to the same period last year, overall TV ad revenue for the year has still declined by 3%. This fluctuation highlights the ongoing challenges facing traditional television in the face of shifting consumer habits and digital competition.
The report also noted that ad revenue in the U.S. rose by 5% this month, with broadcasting services up 1%, and cable TV revenue increasing by 3%. However, despite these gains, national broadcast revenue is expected to fall by 4% for the year, and nationwide cable revenue will drop by 2% by December.
Looking at the four major broadcast networks, NBC experienced a significant 16% rise in user spending, driven largely by the success of the hit series "This Is Us," as well as coverage of the Thanksgiving Day Parade and the National Dog Show. CBS saw a modest 1% increase in November, while ABC's spending dropped by 5%, and FOX's spending fell by 13% during the quarter.
When it comes to content types, sports programming saw a 5% increase in revenue in November, thanks to the popularity of college football games. However, annual sports revenue is down 11% overall, partly due to the high earnings from the 2016 Olympics. The cost of a 30-second ad during an NFL game also rose slightly, from $468,434 in 2016 to $473,775 in 2017.
Entertainment and news programs both saw a 1% increase in November revenue. However, their annual totals have declined by 1% and 8%, respectively. With the political climate remaining strong post-election, news programming continued to perform well.
Interestingly, outdoor advertising showed the most growth, with a 14% increase. Digital media revenue also climbed by 9% in November, marking a 12% year-over-year increase. This suggests that digital platforms are gaining more traction among advertisers.
The Standard Media Index study is based on actual media consumption data from various agencies, which accounts for approximately 80% of total ad budgets. As the industry continues to evolve, these insights provide valuable context for understanding where ad dollars are being allocated and how different platforms are performing.
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