United States - Slight recovery of advertising in May

Area: All | 07/21/2020 |


A study by SMI shows that the fall in advertising investment on TV in the US during May was 23% compared to the previous year.

Although TV consumption showed historical records in March, April and May, linear channels with advertising were among the sectors most affected by the coronavirus due to the drastic drop in advertising investment.

The crisis, however, is beginning to show signs of recovery, as the latest Standard Media Index report on TV advertising investment in the US points out.

According to it, the fall of the advertising investment in TV during May in the USA was 23% with respect to the previous year.

Although the data is negative, it marks a recovery with respect to April, the month in which the drop had been 27%.

By sectors, pay TV fell 24%, broadcast TV 23.9% and Syndication increased 2.5%.
Although the advertising market remained stagnant in May, there have been some hopeful signs that advertising dollars may return in the second half of the year, especially with the comeback of live sports. We have high hopes for a speedy recovery,”said James Fennessy, CEO of SMI.

In fact, if you take live sports out of the equation, the advertising drop would have been just 15%. May is a key month in sports like the NBA, NHL and MLS.

Thus, a year ago, sports represented 17% of advertising investment in TV and its fall this year was 66%.

Entertainment shows, meanwhile, generated 24% less advertising investment in broadcast TV and 16.1% less in pay TV this year.

Prime time, meanwhile, fell 23.9%: with one exception. In the five English-speaking networks, the drop was more than 20%. But for Univision, the month was not so bad: it improved by 12.6%.

Finally, news was the only segment where investment grew: in broadcast TV it did so by 1.1% and in pay TV 9.7%. Fox News was the one that grew the most: 28.8%. CNN followed with 26.7%.

Source: TodoTVNews

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