Post Type:post VIAlytics: Unique Regional Economic Patterns Revealed in Study of Local Cable Television Advertising | Viamedia

 

In a sign of marked regional differences, Viamedia has identified significantly varied spending patterns by product category based upon a 2-year internal revenue analysis that covers over 20,000+ local cable advertisers, who aired 140 Million commercials across the country.

All four of the major U.S. Census Regions (Northeast, South, Midwest and West) paint a unique picture of economic strengths (and weaknesses), as well as regional preferences for certain products and services.

Food is a prevalent theme for the Midwest Census Region. Both local grocery store AND restaurant advertisers exhibit very strong spending indices of 150+. In other words, these category “Food” advertisers are spending at a 50% greater rate in the Midwest than these same category advertisers across Viamedia’s nationwide footprint. No other Census Region of the country comes close to the Midwest when it comes to food! The Northeast Census Region, for example, indexes at only 73 (27% below the national average) for local grocery store and restaurant cable advertisers combined.

In turn, the Northeast Census Region exhibits the highest index (112) for local automobile advertisers (far and away the largest local spending category across the U.S.) The Midwest may be experiencing a surge in “food” advertisers, but local auto advertising is the lowest of all four Census Regions (81).

If ever two areas of the country exhibited almost the exact opposite in local advertiser expenditures, the Northeast and South Census Regions would be prime candidates. Far and away the two highest indexing advertiser categories in the South are Attorney (and other Professional Services) and Health Clubs (and Fitness / Diet products and services), spending +50% above the national average (152 Index). In contrast, these same local category advertisers are spending 25% below the national average in the Northeast (75 Index).

At the other end of the advertiser spectrum in the South, there is pronounced weakness in the Travel & Entertainment and Media advertising categories, spending 33% less on a relative basis versus the entire nation (67 Index). These two local advertising categories in the Northeast exhibit no such sign of relative weakness (105 Index).

The West Census Region, which includes the State of California, is just a little different than anywhere else. Local furniture & floor retail advertisers, for example, are spending on a relative basis twice the level in the West Census Region than nationwide (206 Index). These same retail category advertisers across the other three Census regions are on average indexing well below 100.

So, if there is such a thing as national preferences that impact our national economy, a closer look reveals a nation of very different regional consumer choices that are influencing local cable TV ad spending patterns across the nation.

    Jonathan Sims
    Vice President Media Research, Viamedia