TV AD SPENDING REMAINS STRONG
Despite the economic uncertainty brought on by inflation and a potential recession, early reports from multiple sources indicate that budgets are remaining “relatively stable” and “the state of TV advertising is far from grim.” According to Standard Media Index, “upfront media investment in the second quarter was up 3% compared to the same quarter in 2021.” The watchword for marketers continues to be “flexibility”. For one buyer it means “reaching a broader audience with lower investment” while for another it’s about fluid budgets across partners and platforms. (Ad Age: 8/19/22 – requires subscription)
STREAMING EMBRACES TRADITIONAL TV
As streaming services become more competitive with prices, ads, and the creation of new platforms, they are scrambling to keep profitability. “With so many choices now available to consumers, it seems like the media landscape is reverting back to the cable TV bundle of years past.” Services like Walmart (partnered with Paramount) and YouTube TV are set to offer subscriptions with packages similar to Roku, Amazon, and Apple, because “consumers do need convenience, and one place where they can look at all of their options.” (Yahoo Finance: 8/17/22)
THE IMPORTANCE OF OTT AND LOCAL
“Advertising is going to become a much bigger factor in streaming than it is now.” As prices for streaming services continue to rise, they’re becoming more of a burden on household budgets. For Netflix, this resulted in the loss of paid subscriptions and ultimately money. So with streaming services incorporating more ads in their lower-cost subscriptions, advertisers should consider partnerships with local stations which give marketers access to “trusted relationships that no national service can duplicate.” (TV NewsCheck: 8/22/22)
A NEW FIRST: STREAMING ON TOP
In July, streaming surpassed cable and broadcast “with a leading 34.8% share for the first time since the launch of Nielsen’s ‘The Guage’ over a year ago.” In the report from Nielsen, “streaming is now 22.6% higher than in July 2021.” Cable is behind streaming with a 34.4% share and Broadcast follows with a 21.6% share, which can be partially caused by the typical dips in viewing in the summer months. As Netflix, YouTube, and Amazon Prime Video services continue to rise in share, Broadcast and Cable are “showing declines of 9.8% and 8.9%, respectively.” Note the top comment which clarifies the article headline. (MediaPost: 8/18/22)
HAPPY BIRTHDAY FROM HARRY STYLES
Harry Styles called on his MSG audience to sing “Happy Birthday” to his friend, James Corden. “Corden obviously appreciated the gesture, writing on Instagram, ‘I can’t believe you did this, H! It was the best part of my birthday. Thanks to everyone at MSG for joining in.’” Styles and Corden are close friends, with Styles often appearing on The Late Late Show, whether it’s being a guest host or participating in “Carpool Karaoke.” (Rolling Stone: 8/24/22)
