Things are not easy for those responsible for televisions, at least at the moment. Audiences are falling and the ‘influence on popular culture’ factor has already gone directly to streaming platforms. The series that everyone is talking about are now the heritage of Netflix, HBO or Disney +, instead of being it of the televisions as it happened before. Taiwan Email Lists The platforms have also achieved that their great successes are global. As this happens, advertising revenue, the key element of TV accounts, is also declining. The televisions came out very badly from the coronavirus crisis and its effects on advertising investment, but they were already bad from before. Their problems did not start with the pandemic, which simply aggravated them and made them you could almost say more terminal.
The televisions have to renew their accounts or expose themselves to die. The question is how to do it and what steps to take.
European televisions are somewhat on the trail of market changes, perhaps because they are not yet facing as bloody a situation as American televisions and their cable cutters, or perhaps because they have been in denial for a long time. This does not mean that European televisions are not in trouble, they are. What you have to read about this situation is that US televisions are the ones that are working as pioneers in making the migration to a new model.
This new model implies, on the one hand, entering the VoD universe to play. The major US majors have been launching their own streaming platforms, also playing with the AVoD element. They continue to sell advertising, to cut prices and reach a subscription-fatigued audience.
On the other, the new model must mean rethinking what they do in the advertising market. They must improve how they make their income, something that is not easy. Televisions have tried to incorporate techniques and proposals from the digital universe. Now they are also trying to get advertisers to pay them more, which does not seem to be very easy.
The upfronts season has already left several movements. Television is trying to maintain the same position of power and the same high prices of yesteryear, although it is not really where it was before and its audiences do not justify those fees. TVs expect advertisers to pay prices worthy of classic prime time for their streaming platforms, but advertisers are not exactly in for the job.
Raise prices for regular advertisers
Neither are they because of the last saving move that TV tries to apply. As has been knowing Insider , big TV networks want to raise prices to advertisers of all life.
Until now, advertisers with a long history have benefited. Loyalty to the medium – and having been advertising for decades – guaranteed them discounts. What Unilever paid for a television campaign was not the same as what Facebook or the latest hot DTC paid. The latter paid a full price, because they did not have that common past, while the former paid a lower price.
The big American televisions want to end this practice now and make each other pay the same. This implies, according to a source to the US media, that large advertisers pay between 20 and 30% more than what they paid last year for their television campaigns.
The idea is not exactly new. The chains have apparently been looking for five years to apply this increase and match prices, making, above all, Unilever and Procter & Gamble pay more for their ads. This year, they are pushing a lot harder to do it.
Advertisers, of course, are not willing to take on those new fees. Your pressure point is streaming. If prices are raised, they threaten to abandon advertising on TV streaming services.