Skip to main content

TV Networks Brace For Declining Ad Sales

Dow Jones reports that U.S. television networks - CBS, ABC, NBC, and Fox - made their best efforts this week to wow advertisers with their fall programming lineups, but the hype may do little to boost advanced ad sales.

The TV ad market is changing, and the importance of the "upfront" ad market appears to be in decline. Cable, the Internet, and digital video recorders are challenging the dominance of the traditional 30-second TV spot. "The most obvious proliferation of new distribution platforms is increased leverage for advertisers, who now have more options when putting their budgets to work," Merrill Lynch & Co. analyst Jessica Reif Cohen said in a report.

But the question is whether the upfront market matters as much amid an onslaught of new media alternatives and resistance from advertisers. Traditionally, about 80 percent of broadcasters' advertising space is sold for the coming season at the upfront market, which takes place months before the shows are aired in the fall. The remaining inventory gets sold in the so-called "scatter" market, generally for a premium.

Some big advertisers are now indicating that they're not going to participate in the upfront ad market, a sign that the power is shifting to buyers. Johnson & Johnson, which spends an estimated $500 million on network TV ads, earlier this week told The Wall Street Journal that it will wait until August to make its media-buying decisions. Coca-Cola Co., which spends an estimated $191 million on network TV ads, said it was also considering skipping the upfront process.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of