2017 is shaping up to be a tough year for the TV ad business, with Magna, the research and investment unit of Interpublic Group, reporting that the global TV business will see a drop in ad sales revenue for the first time since 2009, The New York Post reports.
“The strategy firm’s spring update to its annual forecast says ad sales at the main TV broadcast networks will fall 6 percent, to $13.7 billion, in 2017, excluding Spanish-language outlets, as demand tanks for spots selling everything from beer to department store duds,” The Post reports. “In cable, the number will drop 1 percent, to $25.8 billion, according to Magna.”
Some of the decline can be attributed to the absence of political ads and the Olympics, both of which pumped up last year’s numbers. “But it’s also a result of ratings declines coupled with softer price increases, the firm noted,” the story reports.
The Post adds: “This spring’s upfront negotiations, whereby TV advertisers commit their ad dollars in advance of their ad placements, have been slow. Sources tell The Post that advertisers are prepared to pay a premium to hold on to their money and place it when they need to in the so-called scatter market.”