Posted on 05/12/2020 8:56:03 AM PDT by abb
Big advertisers from General Motors Co. to PepsiCo Inc. to General Mills Inc. are seeking to walk back spending commitments they made to broadcast and cable networks, a dynamic that is testing the industry’s five-decade-old way of doing business.
TV ad spending fell in the initial weeks of the coronavirus pandemic, but was insulated from an even bigger drop. That is because the majority of the roughly $42 billion spent on national TV ads in the U.S. is bound by contractual commitments that are made well in advance of a new TV season, which starts each September.
Under those “upfront” deals, the first real opportunity since the pandemic struck for advertisers to cut back future spending commitments began May 1. Companies now have the option to cancel up to 50% of their third-quarter ad spending.
Many companies are seeking to take advantage of that option to varying degrees, including General Motors, PepsiCo, Cracker Barrel Old Country Stores Inc., General Mills, Domino’s Pizza Inc. and pharmaceutical giant Sanofi SA, according to people familiar with the discussions.
Ad buyers estimate that roughly $1 billion to $1.5 billion in commitments for third-quarter ad spending could be canceled. “The cuts are going to be pretty deep,” said Dave Campanelli, chief investment officer at media buyer Horizon Media.
(Excerpt) Read more at wsj.com ...
Notice that the media folks are sending women with the nasty questions.
More signs that we are headed for economic trouble. The big boys are desperately trying to hide it all so they can salvage as much as they can before the leave the little people holding the bag.
This COVID is changing business models left and right.
For all I care, 90% of TV networks can shut down.
The networks will be demanding bailouts
Maybe a few of these corporate brands are finally figuring out that many of us do not watch the garbage news and TV shows these networks churn out day after day. Even Three’s Company looks like Masterpiece Theatre compared to a lot of the trash on nowadays.
Yes!
It should be interesting how much, and where, the (reduced) monies may go.
TV sucks,We watch Blacklist,Live PD.My husband put it on last night.Nothing on,he turned it off.
"No advertisers" pretty much means "no TV".
Some of these corporate giants are cutting their ads because customers are losing discretionary income.
Others may be cutting their ads because they don't NEED ads right now. Does Domino's Pizza really need to advertise at a time when restaurants are closed for sit-down service all over the country?
If the host dies, the parasites starve. Every time.
Good bye, Liberal Main Stream Media!
Good, the networks can make their own cuts, perhaps starting with the children they send to the WH pressers.
Advertising work is fundamentally parasitic, drawing resources from food in stomach, clothes on back, shelter over head. Pushing obsessive consumption of unnecessary items, by playing on a wide array of vices., and warped responses to “beauty” and pleasure.
“No advertisers” pretty much means “no TV”.
And the downside is?
Hopefully this will finally sink CNN.
Thanks to recent corporate decisions, CFA recently had to begin aggressively advertising, and still does in my neighborhood.
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