At a time when TV viewers have more power than ever to skip past commercials. Madison Avenue is acting like it’s the heyday of the Pillsbury Doughboy, Toucan Sam and Mr. Whipple. TV ads, those 30-s…
big media owners like CBS, Walt Disney, NBCUniversal, Fox Corporation and WarnerMedia collect by the end of the year. But they do lend ballast to the notion that, despite a frenzy of calls predicting Big TV’s rapid demise, advertisers do not share that view.
“This year’s advertising upfront was one of the strongest we have seen in many years,” said Lachlan Murdoch, executive chairman and CEO of Fox Corporation, during a call with investors on Wednesday.Why are advertisers relying even more on top-priced TV than they have in the past? Part of it appears to beProcter & Gamble, Unilever and AT&T have over the space of the past year put a spotlight on unsavory aspects of some of the new ways marketers reach their target base.
“I think there is a move back” to TV from digital, said David Zaslav, CEO of Discovery Inc. Wednesday, speaking with investors. “There is a feeling of safety. What are you next to? What are you buying? Who is the talent that you’re buying? What’s the environment that you are buying? You can do that on television and in digital, there is a fear of that.”.
The momentum may not last. Paying higher rates for fewer viewers isn’t a model that can sustain itself over the long haul. And the networks may face other challenges. The new wave of digital advertisers are severe scrutinizers of consumer response. On the web, they can track what types of ads generate reaction, site visits, requests for information, and, ultimately sales.
Not everyone benefited in the same way. TV ad rates soared, spurred by high demand for ad time and a dwindling supply of viewers. With costs on the rise, big advertisers parked their money first at broadcast, leaving less money to spend on cable networks.
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