TV Advertising To Sink 8.2% In 2023 Amid Economic Concerns

Amid looming economic concerns, total TV advertising for 2023 is expected to slip 8.2%, according to S&P Global.

“Overall advertising showing signs of weakening, with limited visibility heading into 2023,” according to the report’s authors. “Upfront remains resilient because advertisers need TV’s reach but scatter weakened over the second half of 2022.”

TV upfront advertisers' spring/summer deal-making typically books ad inventory for upcoming the TV season starting in the fall. For upfront deals inked in the summer 2022, this means media placement occurs from September 2022 through August 2023.

Network TV is projected to drop by 5.1% this year, while cable TV will see a modest 3.5% decline.

Local TV advertising will be a major reason for the overall decline, and is expected to drop by 18.8% this year. This follows the big political advertising election year of 2022, which witnessed advertising rising by 19.1%.

The 2023 total TV advertising decline would be a reversal of the 5.2% increase in 2022, according to S&P’s forecast.

With regard to linear TV, S&P says: “Recession increases vulnerability of linear TV with higher cord cutting, declining audience ratings, and weakened advertising.” It adds that: “Sports is a double edged sword--revenue is holding up, but fixed broadcast rights fees impair cash flow and margins.”



Next story loading loading..