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Studio TV Ad Spending to Drop in 2014 Amid Trimmed Release Slates, Analyst Says

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Magna Global's Vincent Letang also predicts $3.6 billion in political and Olympics ad spending next year.

NEW YORK – Hollywood studios' reduced release slates are likely to contribute to lower spending on TV advertising for films in the U.S. next year, an ad forecaster said here Monday at an investor conference.

Magna Global executive vp Vincent Letang said though that U.S. TV ad spending would be healthy overall in 2014.

Speaking at the annual UBS Media and Communications Conference, he said political spending next year could hit $3 billion, roughly a third higher than in 2010. And he projected an ad haul of about $600 million for the Winter Olympics in Sochi, Russia.
He cited NBCUniversal's success with maximizing audiences during the 2012 Summer Olympics in London.

Overall, Letang predicted U.S. broadcast TV ad spending would grow 9.3 percen in 2014, a swing from this year’s 5.7 percent decline. Cable TV ad growth will accelerate from 4.4 percent to 7.8 percent this year, he said.

Technology companies' marketing of new video game consoles and tech devices will be a positive ad driver, Letang argued.

ZenithOptimedia global CEO Steve King said in the same ad panel that China is now by far the fastest-growing BRIC country and moving ahead of India, Russia and Brazil. It will be the only country to show double-digit growth in the next three years, he said, arguing: "China really has to be considered as separate now…separate from the (other) BRIC markets."

He said there are six "youthful" markets – Indonesia, Mexico, Philippines, South Africa, South Korea and Turkey – that will contribute 16 percent of world growth in the coming years and therefore become more important growth engines.

E-mail: Georg.Szalai@THR.com
Twitter: @georgszalai