Digital Advertising

Companies to spend less on cable TV advertising -WSJ

Advertisers could cut their spending on cable networks by 4 percent as part of a trend that is shifting ad dollars to the Internet, the Wall Street Journal reported.

The newspaper on Friday cited Procter & Gamble, the largest U.S. ad-buyer, and General Motors among the companies scaling back their television advertising.

The Journal cited sources familiar with the situation as saying the amount of advertisingdollars committed to cable networks in this month’s advance ad-selling season known as the “upfront” would be 4 percent lower than last year. Analysts and industry executives had previously expected an increase of as much as 5 percent and such a downturn would be the biggest decline since 2009.

The report said Comcast Corp, which owns NBCUniversal, was an exception to the downturn as it increased its ad dollars compared to last year’s “upfronts.”

While cable networks had been strong in overall television ad business, those owned by media companies such as Time Warner , Walt Disney Co, 21st Century Fox and Viacom Inchave suffered sagging ratings lately.

The cable cutbacks reflect a shift of advertising money to digital media, although the move is relatively small so far, the Journal said.

“Digital has finally begun to take a bite out of national TV budgets,” said one media buyer.

Source: www.reuters.com

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WhitePaper – When Mad Men Meets Flash Boys

Advertising used to be simple business. My newspaper has a million readers. My TV program has a million viewers. Now let’s negotiate what it’s worth to you Mr. Brand to put your ad in front of my audience. The web made this dynamic a bit more complicated, but early on the process was quite similar. My website gets a million hits per month and now let’s figure out what a banner ad is worth to you. The story got more complicated rather quickly as a bunch of genius coders realized that advertising is actually the perfect domain for technology because tech is capable of bringing way more measurement and accountability than ad buyers had ever seen before. It’s not a coincidence that all of those high flying tech stocks you follow are really advertising companies – think Google, Facebook, Twitter, Yahoo, Baidu. Online advertising is a $100 billion global market, or about 10x larger than it was in the early 2000s. This segment has risen from nowhere to become second only to television advertising but growing much more quickly.

What we find compelling about advertising technology is that it continues to transform in very rapid fashion. The complexity factor took another major leap about five years ago with the rise of something called programmatic buying and real time bidding (RTB). The concept here is that every single website impression creates a live auction. From the time I click my mouse to the time that the web page opens up (a few milliseconds), computers have figured out generally who I am, what I like to browse, what purchases I’ve made online, my gender, etc. This data has been delivered to advertisers and those advertisers have bid for the right to place their ad. The winner of the auction has been selected and the ad is now sitting on my web page. And once again, all of this took place over the span of 10 milliseconds a few billion times in the past hour. The technology used to make all of this happen is very cool stuff – reminiscent of the high frequency trading platforms popularized in Michael Lewis’ new book.

To read the full whitepaper, please visit the link below;

Source: differencecapital.com

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