Originally published in Digiday, by Michael Bürgi
With the Newfront presentations recently finished and the TV networks’ upfront presentations taking place next week (not including those who pitched agencies and clients individually), the marketplace — and the expected contentious negotiations over that marketplace — will spring to life not too long afterward.
So what are marketers, and the agencies that negotiate on their behalf, to do? Omnicom Media Group recently issued a report to clients that paints a picture of diminishing returns on linear TV (40 percent erosion of adults 18-49 gross ratings points from 2015-2020).
“When we look at pricing, there are enormous spreads between what we’re paying for long-tail user-generated content and some of the long-tail channels on Roku, for example, versus what we’re paying for premium scripted content. We think there’s a supply crunch on the latter, [and] we’re not as convinced there’s as much a crunch on video ads on connected TV more broadly,” -Ben Hovaness, OMG Senior VP, Market Intelligence
To find out more about Omnicom’s suggested alternatives and more click here.
