One of the most respected forecasters in the TV business says the broadcast networks are in for a surge in advertising dollars in 2016. MediaPost reports that David Poltrack, Chief Research Officer for CBS Corp., sees the ad business posting gains close to double digits.
Poltrack talked about the outlook this week at the UBS Global Media and Communications Conference in New York. The veteran researcher said broadcast networks will post 9.5% increases in advertising next year. Removing the Summer Olympics from the equation, the increase will still be pretty strong, at 5%, he said.
“He adds that there is a possibility with a strong Olympics that broadcast networks could see a double-digit percentage gain — which would be the first double-digit percentage advertising increase since 2004,” the report notes.
Other forecasters have cited figures more in the range of 1% to 3% for next year, the report notes. But Poltrack pointed out that — at least at CBS — the scatter market has been booming, as we reported earlier this week. Large increases in scatter prices now should translate to more demand for upfront inventory next summer.
“Networks are also benefiting from more inventory to sell this scatter season, due to lower sellout levels made during the upfront market last summer — when the marketplace was weak,” the report adds.