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The Changes In TV Advertising

by Ellen Fruchtman, President

It’s no surprise to anyone that people love streaming services. Amazon Prime Video, Netflix, and Hulu are growing exponentially. What people don’t love is watching commercials. What they don’t love is being “sold” to. Streaming platforms like Netflix or Hulu replace most of their commercial revenues within show blocks by charging subscriptions. Watch shows on your computer and you’ll see ads running on their digital platforms. But, there are typically one-two max, with several being :15 seconds in length. The truth is, consumers may not love watching ads, but this revenue stream is what pays for production and salaries.

The TV Networks are watching the subscription-based models and looking for ways to enhance the viewing experience. What is being considered (and currently being executed by some) is a model with fewer commercials. Theoretically, fewer commercials might also mean more attention to those commercials you actually see. Less clutter. More retention and effective ads. Know what else it means? Potential higher commercial costs for advertisers.

Here are some reported changes in the last few weeks and where you’ll find fewer ads next season. Check with your local TV reps to see how this might affect your local TV media buys:

FOX NETWORK GROUPS

You’ll see up to 40% fewer commercials within shows on Sunday nights. Shows like The Simpsons and Family Guy will only feature they call “ A and Z pods” with just two spots running no more than one minute in each break. Shows won’t extend to fill the time. They are selling longer format branded content to air before or after a show – filling the additional six minutes of reduced commercial airtime.

NBC UNIVERSAL

Big cuts are coming to NBCU. They will cut the number of ads in at least 50 original prime-time shows across their broadcast and cable channels by 20 percent! And, they will shrink ad time by about 10%. They are planning on extending the content of the programs where the ads have been reduced.

Here’s something else they are pitching for national ads: They will be using A.I. to match advertising with show content. For example, there might be a sad scene in an upcoming This Is Us, and you might see a relevant ad from Kleenex. Pretty cool, huh?

Suffice to say, changes will be coming. Keep that in mind as you plan your media in the future. It might not affect local breaks for now. But, it’s inevitable change is coming.

Looking for an effective media plan for your business? Contact suits@fruchtman.com and see what we can do for you!

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