What to Know About TV Ad spend in 2018

By: Corien de Jong

As we approach the summer months, we wanted to take a look at trends in television advertising spend as cord-cutting and over-the-top viewership both continue to grow. Here’s what to know for the rest of 2018.

According to eMarketer’s advertising forecast, spending on television advertising will continue to decline. Its forecast estimates spending will fall to $69.87 billion this year. TV’s share of U.S. ad spending is expected to drop from 33.9 percent in 2017 to 31.6 percent in 2018.

And, it’s a trend that’s expected to continue, as consumers increase their use of services like Netflix for their television screens, or apps to stream content on their devices. By 2022, the report predicts TV’s share of ad spend will be less than 25 percent. It should however, show an uptick for the U.S. presidential election and the Summer Olympics in Tokyo in 2020. 

Meanwhile, digital ad spend continues to rise and could top 50 percent of ad spend share by 2021. Growth in spending there is expected to rise across mobile, display and search advertising.

A symbol of how much our viewing habits have changed? Easy, the Super Bowl. It’s interesting that TV advertising’s biggest day was no longer appointment viewing for fans of commercials, most were released – or at least teased – online and on social platforms before the game even began.

On the flip side, one interesting brand bucking the trends: American Express.

So far this year, American Express is spending big on its “Don’t Live Life Without It” and “Don’t Do Business Without It” campaigns on TV and outdoor channels. Over the past three years, AmEx has increased broadcast ad spending, as well as outdoor and print ad spending. Alternatively, it decreased spending on digital advertising. So far this year, AmEx has spent more than $14 million on TV spots, focusing on sporting events and “Jimmy Kimmel Live.”

AmEx, as of May 2018, is one of the leading TV advertisers. Other brands that are still loving the small screen: GEICO and Progressive, carmakers and telecommunications companies including Verizon, T-Mobile and Apple iPhone.

About Ideas Made Measurable!

At IMM, creating action isn’t just what we do — it’s who we are. Our agency is built to deliver full service capabilities while also delivering measurable results. Big data is the marketing buzzword everyone talks about but few understand. We are here to explain in plain English how data-driven, bottoms-up marketing strategies can help generate leads, drive sales and build your brand. We leverage the expertise of the staff at IMM, a data-driven, full-service digital advertising agency based in Boulder, Colorado.

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