State of the Industry: Video
2020 has been quite the storm, leaving networks and advertisers in uncharted waters.
2020 has been quite the storm, leaving networks and advertisers struggling to navigate uncharted waters. As the first half of the year wraps up, here's what you need to know:
- The blanket cancellation of all live sports (including the 2020 Tokyo Olympics) combined with production delays have left viewers starved for new content
- Stay-at-home orders have caused huge spikes in news viewership, up between 10 and 180 percent YoY during the first half of 2020
- All major partners have their own streaming services up and running
- Hulu, Peacock, CBS Everywhere, Turner’s HBO Max and Tubi have all seen viewership spikes
- New programs that have been able to launch have broken viewership records altogether, including Last Dance and NASCAR 7MM
- Tourism, Travel, Auto, Retailers and Theater Releases have been hit the hardest, forced to cancel, or shift to the second half of the year
- With networks still scrambling to fill programming gaps, opportunistic pricing launched in the Scatter market, dropping lower than Upfront and even Direct Response pricing
- Agencies are now pushing networks to extend option lead time, allowing them drop high-priced Upfront inventory and rebuy in the soft Scatter market
Throughout the month of May, major networks and partners held modified Upfront Presentations. What did they all have in common? Uncertainty.
Here are the major takeaways:
- Broadcast networks have slated Fall Lineups loaded with new content, returning franchises and a handful of new shows to fill the fourth quarter
- The MLB, NBA, NHL, NFL are currently discussing modified seasons and playoff scenarios with empty stadiums
- Tentpole events like the PGA and Tennis Majors are considering date shifts
- The November presidential election will bring another uptick in news and information programming, driving viewership to Linear TV
- Live sports advertisers that have pushed campaigns from the first half of 2020 will artificially tighten the sports marketplace in the second half of the year
Advertisers and agencies are being faced with never-before-seen challenges in the planning and buying of TV inventory. New strategies and innovative thinking will be critical in tackling the standard Upfront, where historically 70-80 percent of TV inventory is purchased for the broadcast year.
Conversations around flexibility and “out clauses” will certainly be crucial for 2020 strategies, assuming the pandemic will continue to affect the market to some degree for the rest of 2020.
Finally, broader deals between Linear, Digital, Digital and OTT/ CTV will be constructed as cord-cutters and older viewers become one. It’s important for advertisers to view Video holistically across all screens, allowing them to utilize TV’s massive scale and Digital’s precision targeting to capture fluid audiences.
Live Sports: The Remix
Content-starved fans are getting their fix through social, live streaming and 'historical' content online.
People are commuting in new ways as lockdowns lift
Walking, biking and rideshares are up in major cities across the country.
Stay in the know with Modco :)
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