Facebook, Apple, Amazon, Netflix and Google, denominated as the FAANG companies, collectively spent $2.6 billion on television in 2019, a CAGR of 26% in their increasing investment, according to a new study from VAB.
The investigation noted that collectively the FAANG companies ranked as the top TV spender in the United States for 2019, investing $450 million more than the second largest TV advertiser, P&G. During the year, the FAANGs focused their TV spend on overall branding and core products with video streaming, collectively accounting for 16% of spend. For Netflix alone this was 100% of spending.
Beyond increased branding, VAB found that FAANG advertised multiple products and services through TV to reach desirable, tech-enthusiast audiences at scale. In particular, several brands struck major partnerships with sports leagues which includes heavy advertising and placement exposure during live televised events.
In addition to sports, the FAANG companies were found to be investing heavily within culturally relevant live shows (specials, awards, morning/late night talk) and popular entertainment programmes.
To sum up, VAB observed in its report that the FAANGs were complementing impact with TV continuity through a mix of high-profile sports and live event programming during the year, coupled with a deep roster of broadcast and cable networks covering a variety of demographic and psychographic segments.
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