Advertising and Marketing

Broadcast Ad Revenues Up 16% in Second Quarter

SMI says all TV sales rose by 10% 7/18/2013 07:08:41 PM Eastern

Big ad sales increases in June contributed to strong revenue
growth in the second quarter for the broadcast networks, according to new
figures from research company Standard Media Index.

Total television spending was up 10% in the second quarter
from a year ago. For first half of the year, TV ad revenue is up 4%.

The broadcasters racked up a 16% increase in ad revenues in
the second quarter, including more than 30% jumps at ABC, CBS and NBC in June,
when the NBA Finals and the finale of The Voice aired. CBS'
revenues increased 27% in the quarter, ABC rose 19%, NBC gained 13% and Fox was
up 8%. Univision revenues increased 28%.

The gains reversed a 5% decline in the first quarter and
left the broadcasters up 5% for the first half of the year.

Cable network advertising revenue was up 6% in the second
quarter. For the first six months of 2013, ad revenues are up 4%.

With a 31% drop in June, ESPN's ad revenues were down 7% in
the quarter and 2% so far this year. ESPN's ratings were down 32% in the
quarter, a plunge ESPN described as an aberration caused by a drop in NBA games
and Euro Championship soccer matches. The drop meant that for the quarter, ESPN
fell to second place in ad revenue behind TNT, which was up 9%.

Big gainers in the quarter among the top 20 cable networks
by revenue included History, up 16%; HGTV, up 15%; FX and Lifetime, up 11%; and
Discovery, up 10%. Big declines were registered by E!, down 20%; AMC and
Nickelodeon, down 10%; and ABC Family, down 7%.

Syndication was flat in the second quarter and is down 1% so
far this year. Spot TV was up 9% in the quarter and is up 5% for the half, and
local cable was up 12% in the quarter and 11% for the half.

SMI extracts data from the billing systems at media agencies
representing about 60% of all ad spending. Most of the major agencies, except
GroupM, are represented.

SMI says ad spending on digital jumped 34% in
the quarter as overall as spending rose 16%. For the first six months of the
year, overall ad spending is up 10%.

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