Matrix Local TV Sales Report

2012 Ad Recap: Total, +19.3; Core, +4.6

The core growth was particularly impressive given that political advertising displaced much of the other advertising in the fourth quarter, says Matrix Solutions President D.J. Cavanaugh, noting that the total revenue was up 30%, but core was flat with most categories negative in the quarter.
TVNewsCheck,

Local TV broadcasters expected that 2012 would be a big year with politicians and their supporters directing hundreds of millions of advertising dollars to them.

And it was.

Story continues after the ad

Advertising revenue for the year rose 19.3% over 2011, according to Matrix Solutions. Even with the political advertising factored out, "core" revenue was up 4.6% year-over-year, thanks almost entirely to the resurgent automobile industry, which continues to see TV as the best bet for making people aware of their brands.

The core growth was particularly impressive given that political advertising displaced much of the other advertising in the fourth quarter, says Matrix President D.J. Cavanaugh, noting that the total revenue was up 30%, but core was flat with most categories negative.

"So I look at all the [negative] categories in the fourth quarter and pretty much throw those out because, in some cases, they just couldn't afford to buy television," he says. "Political just sucks out inventory."

Matrix is a Pittsburgh-based supplier of customer-relations and sales management software.

Brand Connections

Matrix's quarterly local TV sales report, exclusive to TVNewsCheck, is based on sales data from more than 400 client TV stations. It includes revenue from station-specific websites and digital subchannels.

Political spending was nearly seven times (650%) greater than it was in 2011, according to Matrix.

[In a separate report last week, TVB said that TV stations took in $2.9 billion in political advertising in 2012. That represents 80% of money spent on TV overall (local and network) and 85% of the money spent on local TV (broadcast and cable).]

Auto in 2012 was up 16.1%, according to Matrix. However, Tier 1 (factory) auto spending was down 3.2% for the year after sharply falling 31% in the fourth quarter.

The Tier One decline was more than offset by healthy increases in Tier 2 (dealer associations) and Tier 3 (local dealer) spending. They were up 22% and 25%, respectively. In the fourth quarter, when most other core categories were running in the red, Tier 3 spending grew 35%.

Over the years, the automakers have vacillated between spending marketing dollars themselves on the network advertising and pushing them down to the associations and local dealers, Cavanaugh says. "Now, it looks like there's a shift, putting the money back into the local market, which I think is good for TV stations."

Other than auto, the only categories posting increases in 2012 of more than the overall 4.6% were furniture ( 4.9%), government and organizations (up 5.7%) and travel (7.%).

Without heavy political spending, Cavanaugh says, total revenue will be down in 2013, but the core should continue to be strong — around 5%. He points out the National Association of Automobile Dealers is forecasting an increase in car sales of 7% this year, from 14.4 million vehicles to 15.4 million. And that should produce a commensurate increase in advertising spending, he says.

It's hard to say how the other ad categories will perform, he says. "We're going to start to see [health insurance] exchanges popping up and start advertising in '13. If interest rates stay low, are we going to see more advertising around home buying, refinancing? And I think the other wildcard in this is telecom. Verizon, Sprint and AT&T — are they really going to continue to battle each other?"

Spot TV's challenge is to stay ahead of overall economic growth, he says. "If it can continue to show 4% or 5% growth year-over-year when the economy is doing 2% or so, I think they're doing really well. It bodes well for the business."

Tags

Comments (0) -

Marketshare Blog Playout Blog

Twitter

TVNewsCheck

Ratings

Overnights, adults 18-49 for September 27, 2016
  • 1.
    3.0/11
  • 2.
    1.8/6
  • 3.
    1.2/4
  • 4.
    0.9/3
  • 5.
    0.6/2
  • 6.
    0.2/1
Source: Nielsen

Reviews

  • Rob Owen

    Easily fall’s best broadcast network comedy pilot, NBC’s The Good Place offers a clever high-concept premise that’s complemented with intelligent, sometimes absurdist humor. Created by Michael Schur, co-creator of NBC’s Parks and Recreation, The Good Place is a highly serialized series that’s essentially set in heaven and stars Kristen Bell and Ted Danson. NBC made five episodes of The Good Place available for review, and the show not only holds up, but also it improves, deepening characters that initially feel one-note and frequently leaving viewers guessing with cliffhanger endings to many of the episodes. The combination of snappy dialogue and winning but flawed characters makes The Good Place a great bet for fans of smart TV comedy.

  • Maureen Ryan

    Pitch has swagger, for good reason. It gets the big things right; the Fox drama about the first female baseball player in the Major Leagues is one of the year’s most assured and exciting debuts. But part of what impresses about the pilot is also the way it confidently strings together so many small but telling details. Ginny (Kylie Bunbury) is the first woman to be called up from the minors to the big leagues, and no show since Friday Night Lights has done a better job of portraying the internal and external pressures that weigh heavily on young athletes asked to do much more than merely succeed on the field. Pitch will likely do a good job of getting viewers to root for it. The hope is that the show won’t be an impressive, short-lived curiosity, but rather a long-term phenomenon.

  • Kevin Fallon

    In a fall TV season that’s already making a splash for championing diverse, distinctive voices in an array of projects that they created, wrote, and starred in, Better Things on FX stands out. The show is created by, written by, and starsPamela Adlon. She plays Sam Fox, the single mother of three daughters modeled after her own reality-show-ready experience raising three girls in Los Angeles following a divorce. Sam is also, like Adlon, a working actress — on shows both raunchy, a la Californication, and animated for children, like her role on Recess. It’s a refreshingly blunt take on single motherhood without sacrificing the warmth of parental love, portraying the dance between selfishness and selflessness that’s at the heart of being a parent — especially one weathering the hormonal fireworks of a household of four women at different ages.

  • David Wiegand

    The fall TV season doesn’t count as much as it used to — we already know that. But no matter how many retreads the broadcast networks throw at viewers in the next few months, this fall will be memorable because of the premiere of Atlanta on Tuesday, Sept. 6, on FX. The half-hour comedy created by and starring Donald Glover (Community), simply and brilliantly recalibrates our expectations of what a TV comedy is and how black lives are portrayed on the medium.

  • Louisa Ada Seltzer

    The second reboot of the 1980s John Candy movie Uncle Buck, bumped by ABC from midseason, has the same tired jokes you'll find on any second-rate sitcom. Too bad, because Mike Epps is appealing and ABC would be wise to keep him around for future shows, but there’s just not enough to this show to suggest it will last past summer. It also airs against NBC’s America’s Got Talent, summer’s No. 1 program on broadcast, which may make it even harder to find an audience.

  • Neil Genzlinger

    Bryan Cranston brings his Tony Award-winning interpretation of President Lyndon B. Johnson to television in an adaptation of the Robert Schenkkan play All the Way, and it’s still quite a sight to behold, just as it was on Broadway in 2014. Nothing beats witnessing this kind of larger-than-life portrayal onstage, of course. But the television version, presented by HBO, offers plenty of rewards, allowing Cranston to work the close-ups and liberating him from the confines of a theater set. Cranston’s performance is a gem — in his hands, this accidental president comes across as an amazing bundle of contradictions, someone who seems at once too vulgar for the job and just right for it.

This advertisement will close automatically in  second(s). You will see this ad no more than once a day. Skip ad