At the close of the second fiscal quarter in the US and in the ramp up to the 2018 Midterm Elections, a report from Matrix Solutions shows that the US saw a .35 per cent year-over-year contraction across broadcast, digital broadcast and radio platforms – demonstrating flat growth.
This figure comes despite the emergence of political advertising spend in primary Democrat and Republican elections, which has seen a 264 per cent growth rate. When excluding political ad spend from the findings, broadcast, digital broadcast and radio witnessed an overall 4.9 per cent contraction compared to last year at the same time.
“According to our data, overall ad spend throughout the year, to date, has remained relatively flat when including the buoyancy that always comes from political campaigns, and without there’s a clear contraction. It’s a trend that’s continued from the findings of our 2017 Ad Spend Report, which means for these traditional platforms, they need to better arm themselves to grab a larger slice of the overall advertising spend pie to remain competitive,” said Mark Gorman, CEO at Matrix Solutions. “The advertising industry is in constant flux, and understanding these trends can help media ad sales teams better anticipate how brands are investing in traditional media platforms to inform their own strategies and priorities.”
Advertising Spend by Platform
National vs. Local Spending
Even when factoring in political ad spend, local advertising is down with a 2.89 per cent contraction rate, but national ad spend is surging with a growth rate of 4.69 per cent. When excluding political ad spend, local continues to be down at a 3.25 per cent contraction rate, with national at a contraction rate of .77 per cent, demonstrating flat growth at a national level without a political factor.