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Where Is The Landscape Shifting...Borrell Associates
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May 2, 2016 by Mark Maier
You know we won't like the message when the first sentence reads "First off, to all my broadcast friends, don't shoot me. I'm just the messenger. I'm a big fan of radio and TV and don't believe for a minute that they're dying or ineffective advertising media. Quite the contrary."
When you look at the chart, you can see where the landscape is shifting according to Gordon Borrell, but that doesn't mean it has to become true at your property...
"But there's a whiff of trouble in the air I feel compelled to pass along.
Peeking at preliminary results from a massive SMB survey that's underway, I see data from 10 markets showing that 42% of TV advertisers plan to either scale back or eliminate their TV spending this year.
That's the highest percentage for all types of advertisers -- including the longstanding whipping boys of local media, yellow pages and newspapers.
There's a caveat: The results are preliminary and not likely to be the same in each market. However, when the survey rolls through 150 more markets over the next several months, it's not likely that the percentages will change more than a few points either way. Even if they dropped 10 points, we'd still be looking at one-third of TV advertisers saying they plan to cut back.
The results are from businesses who said they are buying TV advertising right now. One-fourth (25%) said they are planning to cut their TV budget, while 16.7% said they are planning to eliminate TV advertising.
For radio, the numbers were only mildly less alarming: 17.4% said they planned to cut, while 13% said they'd eliminate.
Could political advertising play a role? Is inventory too tight right now? Will these advertisers come back in 2017 when the campaigns are over?
I'd like to hear your take on this.
(If you're interested in seeing the survey data for your market, you can find more info here.) "
My suggestion is to not let this become a self-fulfilling prophecy, prospect harder, be more creative, deliver sound proposals showing ROI, over deliver results, and learn new revenue generating systems to keep your revenue growing.
