The industry has seen traditional TV advertising spend continue to grow even in the face of increasing technological disruption, a proliferation of video sources and changing viewer habits. We wanted to understand what we could expect over the next five years. We believe that these trends are not sustainable, that the changes in viewer behavior will accelerate and that(…)
There is a non-stop buzz amongst agency media buyers and digital media sellers to espouse the term “programmatic” as the inevitable and enviable future of all media buying. AdExchanger does a nice job of bringing together what digital industry leaders consider to be theright definitions of programmatic, but even those who sell based on this(…)
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.
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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