Why cable revenues are up: More ad time
Cable ad revenues have been growing at a faster rate than broadcast over the past several years. There are a number of reasons for that, including the increasing number of cable channels and the migration of sporting events from broadcast to cable. Now another, very interesting reason has come to light: Cable is increasing the amount of ad time being offered.
A new study by Jon Swallen, chief research officer at Kantar Media Intelligence North America, finds that cable has added one 20-second spot per hour each year since January 2010. The total volume of commercial time has increased 2 to 3 percent annually in that span. At the same time, broadcast has been mostly even.
Why cable revenues are up: More ad time