U.S. Media Spend Up 7% In 2016

 Image result for radio and television advertising 2016

by Wayne Friedman, of Media Post

U.S. ad spending slowed toward the end of 2016 — especially in the last month.December was virtually flat, with a 0.7% increase over December 2015, according to Standard Media Index estimates. For the year as a whole, 2016 was up 6.8% over the 2015. The last three months of the year witnessed a 4.3% rise over the same period in 2015.

While digital media was again the star performer among all media categories, it was only up 13.3% for the year. In 2015, it was 50% higher over 2014. When taking out the two biggest digital media platforms — Facebook and Google  — from the digital media category, the sector’s growth dropped to a gain of 8.7%.

In particular, digital media suffered in the fourth quarter, rising only 7.1%. Retail and telecommunications marketers cut back digital media, as retail digital spending dropped 3.5% and telco digital spending was cut down by 2.4%.

Where did those media dollars go? Back to TV.

James Fennessy, CEO of SMI, stated: “Retail, telcos, and consumer electronics [marketers] have not seen the outcomes they expected from digital and have moved back to the medium they have trusted for decades.”

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