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 industrys 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, Dominos 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 ...
I was going to say they'll always have airports, but I think air travel will be down as well...
If that is the case, we will see cheaper programming like movies that are more than 20 min years old, classic TV shows, and lots and lots of re-runs.
I hope many outlets of the Ministry of Propaganda go bankrupt.
“We are all Covidians now”
CNN is a tiny part of AT&T Warner Media. They dont need it to generate revenue. Its just a way to donate to the DNC.
Wow, thats a pretty Marxist view you have there!
[[[If that is the case, we will see cheaper programming like movies that are more than 20 min years old, classic TV shows, and lots and lots of re-runs.]]]]
Sounds good to me. The model needs to change anyway as far as pay TV. The internet is shifting the paradigm.
A good beginning.
Why would any sane corporate board member waste valuable $’s in ads that pay for fake news and po’s at least 40% of their potential customers.
I finally quit cable because the constant perversion felt like I was rolling around in the gutter every time I turned something on.
I saw Jesse Watters last night and he said something that shocked me.
He said that The 5, has a bigger audience than Sunday's 'Meet dePressed' with F. Chuck Todd.
A nightly cable semi-news, semi-comedy show out draws the "most watched" Sunday news talking head show.
That means, that for all the hype about 'meet depressed', it doesn't draw flies.
Who is advertising on those low rated shows, and why?
ESPN is the largest cost for cable and dish providers. Call your provider and ask for a price cut since your not getting any live sports on ESPN/Disney. Lets put the hurt on ESPN.
I’ve been watching the 1959 to 1961 series “The Rebel” on YouTube. The nostalgia channels would likely not have this title on (having to do their silly quotas of Murder, She Wrote or The Golden Girls or Cheers), but some very good episodes with some familiar faces as guest stars (watched one on Saturday that had Claude Akins in it).
OK, comrade.
So they are going to cut down from 22 minutes of ads per hour?
Maybe if the commercials weren’t so bombastic & preachy.
The Rats forgot that while they were trying to sink the ship, they’re on the ship.
Yep, well said. The effects are starting to spill over into Liberal Land.
Unintended consequences...
Let the destruction be creative!
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