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Is the advertising industry contracting?

The figures for July 2015 are in, and it makes for some interesting reading.

We are seeing a serious contraction of the overall spend across all the media vendors that we track. This contraction is in comparison to July 2014 numbers.

Overall advertising for July 2015 shows a contraction of 20% in total activity.

What has caused this contraction?

Is it a reflection of the shrinking advertising budgets?

Or, a shifting of budgets away from Traditional Media into Online, Direct or event channels?

It is hard to answer this definitively with the data we have available.

Taking a closer look at the numbers we see that the contraction has not been equal across media. Terrestrial TV does the best showing only a very slight decrease of 3%, but Cable TV activity collapsed with 2015 showing ~50% less activity. Going through the other tracked media Newspaper was down 30%, and Radio was down 15%.

1,962 individual advertisers were tracked in July 2014 while in 2015 this number dropped to 1,417. This is a large drop-off in individual advertisers. This could suggest that the traditional advertising market has undergone some contraction with 27% fewer individual advertisers tracked in July 2015 vs. July 2014. This would help to explain the 20% drop in overall activity that we saw.

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