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Streaming Steals the TV Ad Spotlight

Plus, How to Treat SEO Like A Game of Poker

September 03, 2024

Welcome to The TV Room. Your weekly digest of television, streaming, and digital media insights that matter.

This week we're covering:

  • 👑 Streaming Takes the TV Ad Market Crown

  • 🎒 The Impact of TV's Back-To-School Spending

  • 🎥 Creative Spotlight: CarMax - "The Way It Shouldn’t Be"

  • 🃏 Treating SEO Like A Game of Poker.

Streaming Steals the Spotlight in TV Ad Wars

The 2024-25 TV upfront market shows a clear shift in ad spending, with streaming platforms coming out on top. While the overall market grew, traditional linear TV continues to fall behind.

Media Dynamics reports that total primetime ad commitments rose 8% to $29.5 billion, fueled by a 35% surge in streaming commitments, which hit $11.1 billion. For the first time, streaming has outpaced both broadcast and cable in upfront dollars.

Key takeaways:

  • Broadcast primetime commitments fell 3.5% to $9.34 billion

  • Cable primetime dropped 4.8% to $9.07 billion

  • Linear TV declines were somewhat cushioned by strong sports demand

CPM rates declined across the board:

  • Broadcast: -5.6% to $43.35

  • Cable: -6.8% to $20.60

  • Streaming: -16.7% to $29.50

The sharp drop in streaming CPMs highlights advertisers' demand for TV-like rates, helped by new inventory from ad-supported platforms like Amazon Prime Video.

Although most major media companies reported overall gains, they were vague on details. Disney anticipates a 5% increase in total commitments, while NBCUniversal and Paramount expect flat or slightly higher linear volumes.

As viewers continue to migrate to streaming platforms, advertisers are following suit. However, the industry faces ongoing challenges in sustaining ad revenue amid changing viewer habits and pricing pressures.

Read More:

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TV Industry Updates

  • Sports streaming surge: Netflix and Apple lead in sports streaming, eyeing deals like FIFA’s $1 billion World Cup-style tournament rights.

  • Nielsen alternatives: Despite independence efforts, alternative TV currencies mostly supplement rather than replace Nielsen.

  • Streaming-centric viewers: Samsung Ads reports 63% of Smart TV viewers now prefer streaming over linear TV, shifting ad strategies.

  • TV's back-to-school impact: TVB finds TV ads crucial in back-to-school shopping, with NRF predicting $38.8 billion in spending.

  • Circana’s acquisitions: Circana acquired NCSolutions and Nielsen’s Marketing Mix Modeling business to enhance MMM solutions amid industry signal loss.

  • Simplifying walled gardens: iSpot CEO Sean Muller discusses integrating data from walled gardens with advanced identity mapping to ease advertiser challenges.

Stay up to date on the latest in TV advertising by joining our Slack community!

Creative Spotlight: CarMax - "The Way It Shouldn’t Be"

CarMax teamed up with Warner Bros. for a spooky 90-second spot promoting the new "Beetlejuice Beetlejuice" movie while showing CarMax's superior car buying experience.

The Details:

  • The Martin Agency's ad, directed by Ulf Johansson, features a family visiting a haunted "BeetleMax" dealership run by ghouls.

  • The spot contrasts BeetleMax's shady practices with CarMax's trustworthy service, using the tagline "the way car buying shouldn't be."

  • A ghostly "Day-O" sing-along pays homage to the original Beetlejuice film, showcasing the partnership's creativity.

What We Loved: The ad seamlessly blends CarMax's brand with Beetlejuice's quirky horror, creating a memorable and entertaining promotion for both the movie and CarMax's services.

Marketing Mix

  • Perplexity's ad move: AI search platform Perplexity will introduce ads in Q4 2024, potentially challenging Google's search dominance.

  • DEI pullbacks: Lowe's and Tractor Supply are scaling back DEI initiatives, despite strong consumer support.

  • SEO strategy shift: Experts advise approaching SEO like a game of poker, focusing on adaptability and strategic decisions amid uncertainties.

  • AI search surge: ChatGPT hit 2.9 billion monthly visits in July 2024, highlighting the rise of AI-powered search platforms.

  • Evergreen content tips: Define evergreen content based on your unique priorities and update it regularly to sustain relevance and traffic.

The TV Room is your go-to source for staying ahead in the world of television and digital media. Want to chat about these stories with other industry pros? Join our Slack channel to continue the conversation.