Despite the surge in cord-cutting, traditional TV advertising remains valuable for a few reasons:
, when rights will go up for sale again. That gives traditional media companies a near-term advantage, at the very least.Even as digital companies further their dominance, advertisers are wary of the reputational risk posed by the likes of YouTube and Facebook. The platforms live in a sea of controversy, especially when it comes to the moderation of video content. Even with access to
people, the risk of a brand's ad being juxtaposed with malicious content may be too high when safer — and still meaningful — alternatives exist, like linear TV.Advertisers know that people watch TV together, and that it's the fastest way to disseminate an ad campaign with the assurance that millions of people will see it in real-time. In an era of on-demand, and services that have nixed ads altogether, advertising alongside content that creates a sense of togetherness is hugely valuable.
As ad-free SVODs proliferate, there are fewer opportunities for advertisers to reach large audiences on premium video content in a curated environment. Even though primetime viewers ages 18-49 have droppedduring the current season versus 2014, advertisers know that with networks they're getting a clear picture of their ad's impact.
That's appealing, given the present difficulty of measuring ad impact on streaming and OTT. Further, legacy networks CBS, NBC, ABC, and Fox are increasingly growing the value prop of their offerings by providing more opportunities for advertisers to simultaneously buy commercials across both streaming and linear programming.
Networks likely hope that their ability to reliably serve large audiences in real time — combined with their digital efforts — will be enough to help maintain their stature in spite of the threats posed by SVOD services and digital ad platforms.1. Sign up for the Digital Media Briefing to get it delivered to your inbox 6x a week. >>pass to Business Insider Intelligence and gain immediate access to the Digital Media Briefing, plus more than 250 other expertly researched reports.
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