15 MAY 2020

HOW ADVERTISERS AND MEDIA BUYERS ARE RE-THINKING ITS STRATEGY?

Ad Age hosted its virtual conference, “TV Pivot: The Way Forward,” where it gathered top agency and brand executives and sales leaders who discussed to discuss the state of the TV ad marketplace and how the industry is navigating the pandemic.

15 MAY 2020

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On 12 May and 13 May, Ad Age hosted its virtual conference, “TV Pivot: The Way Forward,” where it gathered top agency and brand executives and sales leaders who discussed to discuss the state of the TV ad marketplace and how the industry is navigating the pandemic. The speakers included a representative from giants like ViacomCBS, NBCUniversal, A+E Networks, Discovery, and several others. The media giant representatives in the TV industry who continue to seek ways to cope with productions that were paused. Live sports continue to halt indefinitely, and advertisers continue to advertising plans.

The pandemic rolled around during the time TV networks were preparing to host their upfront presentations. Jo Ann Ross, President, and Chief Advertising Revenue Officer of ViacomCBS affirms that despite the differences, audiences are at home looking for new content, and communications about programming, innovations, and capabilities have already been in place, with something available every night of the week on CBS’ slate schedule. Ross also assures that the NFL schedule will return 10th September, but the marketplace is still skeptical. She is certain that although CBS members have learned that they can continue to conduct business without physical interaction,  in a consultative approach, and interact through platforms such as Zoom. the networks have hopes for the Super Bowl and an additional wild card game, and need more time to learn what the status of college football is, as it remains unknown.  A+T Networks has 1,000 hours ready to view, even as most employees work from home. The platform offers Nickelodeon  shows scheduled for the Fall, and CBS’ acquisition of a Chuck Lorre comedy, two dramas, and even classic suspense movies like “Silence of the Lambs.”  The service is renewing 80% of its shows for next season.

Ross also assures that the NFL schedule will return 10th September, but the marketplace is still skeptical. She is certain that although CBS members have learned that they can continue to conduct business without physical interaction,  in a consultative approach, and interact through platforms such as Zoom. the networks have hopes for the Super Bowl and an additional wild card game, and need more time to learn what the status of college football is, as it remains unknown.  A+T Networks has 1,000 hours ready to view, even as most employees work from home.

Peter Olsen, President of Ad Sales at A+E Networks indicates that another set of hours for next cycle, new holiday, and new slate of history documentaries and the network are at number one. “The things we have in place allow us to give marketers the flexibility they need can answer questions about offering and content,” Olsen said.  April represented a decline for ad sales, but May and June seem to be improving. The numbers won’t skyrocket after the pandemic, but rather increase gradually. Networks need more time before redefining what the framework will look like. Negotiations may start during the summer, around 4th July. Flexibility is currently referred to as a keyword, but there still has to be a commitment of dollars that is high enough to serve as a seller and publishing side since they have employees.  According to Olsen, some advertisers commit some quarter to quarter, some week to week, but there is already a large amount of flexibility. The percentage will gradually shift by quarters, dates notice before something can be canceled. According to Olsen, ad campaigns are very effective.  Jon Steinlauf, Chief U.S. Advertising Sales Officer from  Discover, stated that working remotely hasn’t been a challenge, but advertising as hit a hard stance. The network expressed new opportunities for food networks and advertisers. Some categories are still doing well, but others such as automotive and retail, including retail markets such as  Walmart, Target, Lowes, etc, have increased in terms of eCommerce; Sales and deliveries are up.  The latest productions have resulted in 50/50  and 60/40.

NBCUniversal’s Mark Marshall, President of Advertising Sales and Laura Molen, President of Advertising Sales and Partnerships, NBCUniversal expressed a sense of flexibility in the 3rd quarter. As soon as the L.A screenings were canceled,  there were about 100 advertisers and, within a week, there were conversations to either split the scheduled “America’s Got Talent,” the only show that doesn't have that is normally done is Ninja warrior, or implement plenty of programming as a replacement to the Olympics. Marshall mentioned that the NHL premier league and golf formed part of Sports’ evening news. She expressed that there were no plans regarding Sunday Night Football. Some advertisers continue to ask for real estate and putting them in programming, or sponsoring. They want five more to consumers. Peacock allows marketers to expand like never before. Peacock: are advertisers expressing concerns for commitment, with more ad-supported content. 

According to Kim Kelleher, President of Commercial Revenue and Partnerships, AMC Networks, Steve Mandala, President of Advertising Sales and Marketing, despite not having sports, the scatter market is growing, conversations and meetings are radically increasing. In a few weeks, companies may have a better idea of Q3. Several partners are ready, but others others ask for more time. Univision Communications, Steve Mandala and Rob Tuck, Executive VP of National Sales, also contributed their experience with marketing and sales during the pandemic. According to NBCUniversal representatives, the scatter market is growing, conversations and meetings are radically increasing. In a few weeks, it "will have a better idea of Q3 as several partners are ready, and others are asking for more time." The network, does, however, hold a good idea of how to represent inventories and ad-supported quality places, launched on four channels on pluto, and more partnerships with others.

Building digital and OTT audiences with partnerships that have been established. AMC does not recover until “partners recover." Some advertisers  start with scatter markets, while others start with  the 3rd quarter picking up. There have been cuttings and closer time to air to cut. Clients are looking to possibly do expansions. The agency has more data. What have you seen in terms of consumer behavior and how does that impact your strategy? What is the biggest challenge for the marketplace in getting out of this period? Answer: Both sides have “taken new states” will see more in the 3rd quarter. During the upfront quarter, Univision has increased both, its viewing linear and digital platforms.