Television

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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TV is Finally Embracing Digital Ad Technologies

Digital ad tech is finally making its way into the TV ad market after decades of talk about making TV ads more personal, more automated and smarter. Today, addressable ads on TV are a reality at Cablevision, Dish and DirecTV. Programmatic TV advertising as a long-term strategy is being evaluated by all of the major TV media owners and media agency TV buyers. And audience-based TV ad buying, while nascent, is now being tested by virtually every TV media owner and TV ad buyer.

What’s causing the TV industry to finally move to new ways of filling the ad pods tied to their shows? Three reasons: fragmentation, accountability and digital envy. First, audience fragmentation on TV is now quite severe. Nielsen data show that 65% of U.S. TV viewing is now on shows with a rating of under 0.5. Buyers and sellers need techniques to “re-aggregate” those fragmented audiences.

Second, thanks to Wall Street and big data, ad spend is under the accountability microscope at every major consumer marketer, making ROI-based measurements and the elimination of waste in both media and in the media-buying process very high priorities.

And third, now that digital is part of every marketer’s communication mix, an appetite has been created for digital-like measurement, optimization and processes in TV ads as well, where the bulk of ad spend still goes for many brands.

What are these new technologies? Aren’t addressability, programmatic and audience-based just three different ways of saying the same thing? No. While each share a certain provenance in terms of using data to make ad placement decisions, they are quite different and are likely to have quite separate paths, timeframes and impacts on the TV ad industry.

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Source: adage.com

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Facebook to track users’ TV habits

Beginning this fall, when Facebook users watch a TV show on a cellphone or tablet, Facebook will probably know about it. The social network will scan its databases and send the age and gender of the viewer to Nielsen, the TV ratings measurement company, to help advertisers learn more about the audience watching shows online.

For decades, Nielsen has recruited families to log what they watched at home and report back to Nielsen. Now, Nielsen is expanding beyond the family unit — and beyond the TV set — with help from Facebook and other data aggregators.

The very definition of “watching TV” has been changing fast. People are going from watching “channels” on TV sets in their living rooms to taking in their favorite shows on laptops, smartphones, tablets and, soon, their wristwatches. They’re mobile, tuning in from the car, a train, the beach, the classroom or even the grocery store.

The Facebook-Nielsen partnership is part of a stepped-up campaign to get a better glimpse of how people are using computers and mobile devices for their entertainment. It also is intended to bring the art of audience measurement into the digital age.

“The world is shifting radically, and so we had to evolve our measurement so that we could capture all of this fragmented viewing,” said Cheryl Idell, a Nielsen executive vice president.

But the notion that users will be unwittingly alerting researchers about their TV habits, however disguised, makes privacy advocates nervous.

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Source: www.latimes.com

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‘Programmatic Buying Killed Us’

 “Programmatic buying killed us,” said Jill Jack in an interview the week after she closed down National Spot Sales Representative, Inc. (NSSR), the last remaining independent television and radio national sales representative company.

ABC, CBS CBS 0%, FOX and NBC’s TV station representative divisions and Clear Channel’s Katz Media Group all shut down their operations a year earlier, leaving NSSR struggling with only 5% of all TV and radio inventory sold on a direct, guaranteed basis.

“With so little inventory sold non-programmatically, we couldn’t survive,” Jack said. “There weren’t any buyers left because all the agencies used their own or independent trading desks, so we had to call direct on small- and medium-sized businesses that typically made us call on their Purchasing Departments.”

Source: www.forbes.com

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