• by Paul Gough , June 3, 2003

The war and the lack of Olympics and election ads led to a flat quarter for broadcast television, according to Television Bureau of Advertising analysis of TNS Media Intelligence/CMR estimates.

In the top 100 markets, local broadcast TV revenues rose 0.3% (to $3.7 billion), network TV ad revenues dropped 3.5% (to $5.54 billion); and syndicated TV rose 14.5% to $812.1 million. Overall, total broadcast TV revenues dropped 0.8% to $10.11 billion in the first quarter compared to the same period last year.

Local broadcast's top category remained automotive, with a 4.2% increase in spending to $813.8 million in spot TV buys during the quarter. Car and truck dealers came in third with a 4.5% increase to $209.1 million for the first quarter. Of the top 10 categories buying local TV spots, only restaurants (-3.5%) and financial (-0.9) were down. Telecommunications, furniture, food/food products, motion pictures and leisure-time activities had increases as well. Spending in the travel/hotel and government/organization categories dropped in double-digits, as did soft drink/candy/snacks and computers/software and home electronics.

TVB President Chris Rohrs said the runup to the war and the war itself, combined with the lack of political/Olympic spending and a weak economy, provided for a difficult first quarter for local TV.

"I call this a market looking for momentum, which can be said for television and the advertising market in general. It may be finding it, finally," he said. He pointed to a robust upfront, an economy that looks like it might be improving, an uptick in consumer confidence and a stabilizing stock market. Rohrs said it remained to be seen whether advertisers would hold onto their commitments but "this looks to me like a marketplace where people will hold their commitments."

A solid economy would help ad revenues, which TVB projects will increase between 1%-3% with projections right now on the lower side.