Phoenix: TV ad spending is down

Low gas prices are helping provide a boost to the overall economy in Phoenix, but the market’s media economy is mixed, with TV spending down so far in 2015 and radio spending up.

TV is down about 4 percent year-to-year, and buyers expect more of the same for the rest of the year before things pick up in 2016 with political and Olympics spending.

“For the rest of the year, we predict these trends to follow suit,” says Joey Macasaet, senior media buyer and digital analyst at the Phoenix agency Owens Harkey.

“But in 2016 overall spending on TV should increase significantly.”

The primetime, evening news and late news dayparts are experiencing significant demand, while early morning, early fringe, daytime and late fringe are generally negotiable.

Retail, automotive and telecommunications are the top spenders, with pharmaceutical up significantly versus a year ago. Restaurants, financial services and retail categories are all off.

They are off despite a strong local economy made even stronger by a $1 drop in the price of gasoline over the past year and increases in consumer spending on dining and drinking, up 18 percent, groceries, up 10 percent.

But while TV ad spending is down, radio spending has been very strong, up about 8 percent year to year.

Macasaet notes that’s exactly the reverse of 2014, when TV was up and radio down.

“In essence, net growth in both these areas has leveled out,” he says.

As always, the morning and afternoon drive times are the most in demand. Evenings tend to be a bit more negotiable than mornings on most stations.

The midday, evening and midnight dayparts are the most open and offer buyers the best deals.

Phoenix is a strong radio market. In October there were 22 stations that posted at least a 2.0 average quarter-hour listener share, according to Nielsen Audio portable people meters.

Two stations came in with at least a 6.0 AQH share during the month.

The market leader was iHeartMedia adult contemporary station KESZ-FM with a 6.6 share during the month, followed by Hubbard Radio’s classic rock station KSLX-FM with a 6.1.

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