More local media-buying executives -- who buy broadcast TV -- are looking to make cutbacks on TV advertising in the upcoming year, according to Borrell Associates.
Nearly 18% of local media buyers say they anticipate cutting back on legacy TV. Newspapers are next with 17%, while magazine media buying comes in at 15% and radio at 14%.
Borrell says that overall, 57% of TV buyers plan to make cuts on some media in 2023.
Local ad buyers are least likely to make cuts on search-engine marketing (1.8%). This is followed by streaming video/OTT (2.2%); content marketing (2.6%) email (3.4%); social media (4.0%) and streaming audio (4.2%).
In the middle of the group are direct mail (8.7%), cable TV (6.9%), outdoor (6.3%), events/sponsorships (5.4%), print directory (5.2%) and website ads (4.6%).
Borrell’s research came from a survey of 496 buying executives in 2022 who bought broadcast TV.
“It’s not too surprising to see where they might be cutting,” says Mike Cassetta, director of business development for RevContent, which sponsored the research.
Still, Cassetta says, broadcast TV advertisers might look at this data and gain some insights, including buying digital media they have not pursued to date.
“I wouldn’t discount streaming audio or podcasting,” says Cassetta. “The typical local advertiser hasn’t advertised on a podcast because they don’t know how or they perceive it is too complicated or too expensive, or because they haven’t been pitched on it.”
It's hard to tell who the respondents were---TV time buyers, agency media directors, advertiser CMOs, ??? or a mix? But what I read from this is that brand building media---TV radio, print---will all take some form of hit as these are used more for long range impact. In contrast, media that are mainly utilized for short term sales promotion---search, DR, etc.---such as social media, email, etc.---- will not be hit as badly. No surprises there.
As for the actual percentages the TV, radio and print figures are all in the same ball park---about a 15%-20% decline but I wouldn't get too excited about the small differences as these media are not at all comparable where dollar volume is concerned.