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What's Next for TV Ads? TV networks in US is feeling the squeeze in future ad revenue streams as streamers drive down CPM prices in current upfront markets, putting pressure on networks. Advertisers demanding significant discounts on traditional networks' ad space while allocating more money to streaming services and live sports (per Variety) Though streamers boast large audiences and vast (fragmented) consumer data, they're also offering significant discounts on streaming ad space, up to 10%. Cost of advertising on traditional TV channels has also decreased slightly, but significantly less than streaming, around 4% or less - platforms with the most inventory, least must-have content, and weakest targeting capabilities most vulnerable. Linear national TV advertising revenue from broadcast and cable networks is projected to sink 2.7% to $27.5 billion this year (Per MoffettNathanson LLC Research) despite strong Summer Olympics and political ad spending. Excluding Olympics, the decline estimated to be steeper, reaching 7% to $26.3 billion - makes you wonder how much further ad revenue would drop without political advertising⁉️ Many advertisers want to follow consumers to new streaming platforms, but some of these platforms are built on the premise of fewer commercials than traditional TV - this creates a challenge that both advertisers and streaming services need to manage. Pharmaceutical companies, a major source of income for traditional TV, are now more hesitant to spend as much on advertising - likely looking for better deals at streamers and exploring alternative methods. ► Traditional media companies are forced into discounts for ad space in two upfronts now, are they risking permanently lower ad rates❓ ► Are some streamers offering lower rates to push the ad market to streamers❓ ► What will next years upfront look like❓ ► How will more pop-up sports 🏈 🏀 ⚽️🎾 streaming events affect CPMs❓ Varity: https://lnkd.in/dex65PeV MoffettNathanson Research: https://lnkd.in/dB_Uy_w5

TV Networks Fight for Fewer Dollars in Upfront Amid Big Streaming ‘Rollbacks’

TV Networks Fight for Fewer Dollars in Upfront Amid Big Streaming ‘Rollbacks’

https://variety.com

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