TVBizwire

TV Ad Spending Nears Milestone, Even as DVRs Post Gains MediaPost

Both TV ad spending and DVR penetration posted gains in 2012, even as DVRs continue to be cited as a problem for TV advertisers.

MediaPost reports that 46% of homes are now estimated to have a DVR, up 9% from the previous TV season, according to an annual report from Nielsen. The research firm estimates U.S. ad spending in the television market in 2012 at $76.5 billion, up 6.5% from 2011.

“Without spending attached to an Olympics or federal elections, the growth rate likely won’t be as robust this year, but a less than 5% increase would still propel the total market beyond $80 billion,” the story reports. “Reality TV continues to deserve some credit. Last year, nearly 40% of all ad dollars were spent in prime time. While drama programming drew the most of any genre at $7.8 billion, the $5.6 billion spent in reality TV dwarfed the $2.7 billion for comedies.”

Nielsen also comes to the unsurprising conclusion that the higher a household’s income, the more likely it is to have a DVR -- for homes with income of $100,000 or higher, DVR penetration is 70%; for homes in the $75,000-$100,000 range, penetration is 60%.

Penetration is growing fastest in households with income of $30,000 or less, where 25% of homes have DVRs, up almost 13%.

“If last year’s growth rates repeat themselves, about 60% of homes with incomes of $50,000 or more will have a DVR by the time new shows launch in the fall,” the piece reports. “Meanwhile, for all the talk about gaming consoles -- Microsoft and Nintendo are marketing them as entertainment hubs -- growth declined in the past year, albeit by only 0.2%. Data shows 45% of homes have one.”

Prime-time TV viewing is highest in the under $30,000 household income category, with an average of one hour, 23 minutes per night. In households with $100,000 and higher income the figure is slightly more than one hour.

The story adds: “Time-shifted viewing is growing in all income segments. The daily average rose from 21 minutes to 25 among the $30,000-$50,000 income segment -- the most for any group.”