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How Much Do Local Tv Commercials Cost

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The report assesses the impact of the coronavirus pandemic on the financial performance of the US media industry. It analyzes financial data using the same methods as media news pages. In all cases, salaries are not adjusted for inflation.

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Information about newspaper and local television news comes from the assets of publicly traded media companies and from Exchange Commission filings. Companies in each industry reporting quarterly financial data up to June 30, 2020 are included (six for newspapers, five for local television); See the full list of organizations. Together, these companies own 300 daily newspapers and over 600 local television stations. (As a result, the results of individual newspapers or stations are often not reported.) Companies for sale publicly owned newspapers or local television stations but do not report station revenue (eg, advertising revenue).

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Data are reported at the individual firm level, and when aggregated across firms, average results (ie, the average of all firms ranked from top to bottom) are reported. Annual adjustments are made to avoid seasonal differences in economic activity – usually comparing the second quarter of 2020 with the second quarter of 2019. Figures for a particular year are reported in that year’s quarterly papers; Revised figures included in documents for subsequent years are not valid.

There have been many acquisitions of local newspaper and television news organizations during the 14-year period studied here, so an increase in revenue for a particular company in some cases may indicate that the company is acquiring additional assets. of the media when it meets or receives. . However, efforts have been made to ensure year-over-year comparisons for 2020 and 2019. In March 2020, Lee Enterprises acquired Berkshire Hathaway’s newspaper group and its single-site brands, showing What is the income? As with no price – valid for 2020. New Media and Cannet merged in late 2019, renamed Cannet, and combined Cannet’s and New Media’s revenue for previous years (and overall are called “Cannet”).

Nexstar merged with Tribune in September 2019 in the local TV segment and it is down to 2020 to calculate what it would have received if these other stations had not been acquired.

Information on cable and network TV content comes from Kantar. Because this data covers the universe of major cable news providers and television networks, revenue numbers can be grouped into three groups (cable, Fox News, CNN and MSNBC and networks, ABC, CBS and NBC ). Industry income (neutral). The internet can also be checked separately.

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Univision is prolific in the Spanish media industry, but is not included here to avoid focusing on just one agency.

The coronavirus pandemic has hit the US economy hard, ending five years of growth in the second quarter of 2020.

Media outlets have responded to these financial pressures with new closures and layoffs, and events in recent years may have been relieved by the government’s payment protection program. But not all industries or organizations are equally affected.

Newspaper companies were hit hard. Advertising revenue for the six publicly traded newspaper companies – the largest chains with 300 daily papers – fell an average of 42% last year (that is, compared to the second quarter of 2020 and the second quarter of 2019).

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On the other hand, total ad revenue was roughly the same for the three major news networks, but there were significant differences between the networks: ad revenue for MSNBC and CNN was nearly doubled, while Fox News Channel’s revenue doubled.

An average is the middle number in a list of numbers arranged in ascending or descending order. For example, [1, 2, 3, 5, 8] has a ratio of 3. If there is an even number of numbers, the ratio is half between the two numbers; [1, 4, 6, 7] an average of 5. In this report, the total income of newspapers and local television companies is not combined to calculate the industry. Instead, changes were calculated at each center and these annual changes were averaged as described above. Throughout this report, the average annual turnover (six for newspapers and five for local television) is reported as a means of summarizing the earnings picture among publicly traded companies surveyed in the industry by one. Because each company represents a different issue (for example, Belo represents one newspaper, Gannett represents many), the summary provides an overview.

Advertising revenue for the five local TV news organizations studied (those that own or operate at least 600 individual stations) fell in the second quarter of the year, but was offset more by renewal fees.

Meanwhile, ad revenue for nightly newscasts across the three broadcast networks (ABC, CBS and NBC) increased as viewers turned to television for broadcast news.

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The rest of the report looks at each of these four areas of the media industry in detail.

American newspapers have long been in recession. While some national newspapers have reported increases in viewership in recent years, advertising revenue across the country (including hundreds of local papers across the country) has experienced a sharp decline in advertising revenue during of the Great Depression and has not yet recovered.

Advertising revenue has long been the industry’s main source of revenue, but in recent years many newspapers have shifted their business models to efforts aimed at generating revenue directly from readers, such as online or print subscriptions. . However, overall tax returns and provisions have decreased over the past 10 years.

Now, with the impact of the coronavirus, the six publicly traded newspaper companies reviewed here (which collectively own 300 newspapers) have seen revenue decline year-over-year in both of these categories.

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Average ad revenue for these wholesale newspaper companies fell 42% in the second quarter of 2020 compared to the second quarter of 2019. This trend was similar for the six companies of the newspapers reviewed here, and Gannett, which was slightly affected, showed a 35% drop in advertising revenue compared to last year.

Digital marketing is a new source of income for newspapers as their circulation is shrinking. Such advertisements will not only reach subscribers but also those who see free offers on newspaper websites. But the digital ad tax has provided little relief in the early days of the pandemic. Digital advertising revenue fell by an average of 32% in the second quarter compared to last year. (See the Appendix for tables with detailed information.)

Operating income, which had been stable in recent years, fell by an average of 8% in the second quarter of 2020. Among the worst affected firms (Ganet and Lee), operating profit fell by less than 14%. As a result, three out of six companies now make a significant amount of money from advertising—a situation that would have been unthinkable a decade ago, when all revenue was The advertising income was two and a half times more than the total amount.

For example, Belo generated revenue from bookings, traffic and advertising (about $16 million each) in the second quarter of 2020. In comparison, in the second quarter of 2010, Belo had 77 million in advertising revenue and $35.5 million in advertising revenue. From subscriptions and traffic.

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Each quarter, newspaper companies reporting profits in both periods worsened during the Great Recession from December 2007 to June 2009. 11% and 30% of these companies in the second half of 2008 and 2009, respectively (see Appendix for detailed tables).

However, this was not consistent with a 42% year-on-year decline in the second quarter of 2020. In 2008 and 2009, cycle earnings were relatively flat, and in the second quarter of 2020, it was down an average of 8% over the year.

Some newspaper companies are turning to other sources of income to fill the gap left by declining advertising revenue. This includes event royalties, advertising services, commercial advertising, product endorsements, according to The New York Times, at least some income from television appearances. But those tools didn’t help much in the second quarter of 2020, as many companies saw “some” of their earnings decline. This is especially true for the Times, which experienced a significant year-on-year increase in this “other” revenue in the second quarter of 2018 and 2019 (40% and 30%, respectively) before falling to 5% in 2020. .

In times of declining revenue, companies cut costs

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