Why TV Ads Will Dip After Rio


RIO2016While political ads and the Olympics give television an advertising boost in the first-half of the year, how will the second half fare?

Bernstein Research predicts television ads will soften following the Rio Olympics in August.

He predicts increasingly tough revenue comps compared to the second-half of 2015, when the TV scatter market improved, reports MediaPost.

Longer-term television audience guarantees are changing, along with viewer habits.

Past year guarantees have been too high, and while Bernstein Research believes ad agencies will spend more at the TV upfronts, that will only happen with realistic audience guarantees.

“So while the reports coming out of the upfronts will be about increasing CPMs [cost per thousand viewers], ultimately, revenue is a function of price times quantity and we believe quantity has to come down,” according to Todd Juenger, senior media analyst for Bernstein Research.