Three years ago, the beginning of the end of the U.S. television business looked...
SAN FRANCISCO/NEW YORK - Three years ago, the beginning of the end of the U.S. television business looked certain when one of the largest ad buying agencies vowed to move a big chunk of its purchases to YouTube from TV budgets.
This week, the big U.S. TV networks plan to drive the knife further into digital rivals, repeating the phrase “brand safety” and exploiting YouTube’s struggle to curb unsuitable content, during the upfront ad sales period when TV networks preview the fall season for advertisers. Out of a sample of 240 companies that advertised on YouTube during last year’s first quarter and on TV networks’ online services in this year’s first quarter, 46 percent spent less on YouTube than a year ago and more on networks’ online properties, according to MediaRadar. These companies include major U.S. advertisers Pfizer Inc, Verizon Communications Inc and Adidas.
One example is “Carpool Karaoke,” a segment from “The Late Show with James Corden” on CBS which has performed well on YouTube, said one CBS executive. An executive at a major ad buying agency said networks this year are touting their strength in high quality content across multiple screens, a significant departure from trying to compete with YouTube and Facebook by talking about tech.A second major U.S. ad buying firm said its annual spending on YouTube will grow at a slower rate for the first time this year.
YouTube screens all videos available for advertising in Google Preferred, a popular batch of content set aside for advertisers making big spending commitments.
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