The article covers the increasing shift away from the
standard commercial format and the difficulty networks are having finding a
model to replace advertising revenue. This will be an ongoing issue, for not
only the networks but, for advertisers who will still want to run traditional
advertising spots but not pay significantly higher amounts.
For networks, they have already begun experimenting with
different length spots or ads that run in the beginning or end of the show. NBC
is working to incorporate shorter ads with targeted formats and content to
afford marketers the ability to still reach consumers and make the advertising
spots still valuable. Sporting events have been experimenting with different
variations for the last few years, running ads concurrently with footage of the
event during a timeout or change in possession.
For marketing firms, there must be a concerted effort to
stay relevant on multiple platforms. While a shift to all-digital has been
projected for years, but internet capabilities are still far from being able to
replicate the exact experience of traditional TV, especially for live events
like news and sports.
Overall, large networks like NBC (who have multiple
channels) and brands like PG or Pepsi will figure out a model that will be able
to link ads and content to different shows and media platforms, while also
leveraging brand integration. There could be a greater challenge for smaller or
more specialized firms who need to utilize a specific platform, as traditional
media ad buys increase, they will be forced to pay or find other effective
methods to reach their target customer.
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