Fox News Aims to Snatch Ad Dollars From CBS, ABC, NBC in Bold Bid

by

Year after year, we see similar battles play out: Pepsi competes against Coke, Verizon clashes with T-Mobile, and Fox News engages in debates with CNN and MSNBC.

Over the past few months, Fox Corporation has been strategically shifting its well-discussed cable news channel onto a new combat zone.

In the run-up to the “upfront” period, representatives from our company are advocating to prominent advertising agencies that Fox News Channel now provides the substantial, live audiences that advertisers previously received from CBS, NBC, and ABC during traditional TV broadcasts. However, these audiences are no longer a given due to consumers’ shift towards watching their preferred television shows on broadband platforms at their convenience. This year, Fox Corporation lacks the Super Bowl broadcast to boost sales, and, like other media companies, it is grappling with market instability due to the Trump administration’s ongoing tariff initiatives.

According to Trey Gargano, the executive vice president of advertising sales for Fox News, their ratings are less expensive compared to prime-time broadcasting, yet they offer the same scope and audience reach. Moreover, there’s a high overlap in their viewership with other networks. In essence, he emphasizes that there’s nothing quite like it in today’s market.

Marketers are increasingly exploring the realm of news, given their renewed curiosity. However, the number of advertisers who feel at ease with news can be relatively small, especially as they aim to steer clear of content that might provoke controversy among a politically divided American public. Typically, news is sponsored by pharmaceutical companies, auto manufacturers, and financial services, while big household goods producers tend to avoid it, as suggested by buyers.

According to Suzanne Irving, president of integrated investment and client solutions at OMD (a media buying agency under Omnicom Group), advertisers are delving into news topics more than usual. Previously, it was strictly advised to avoid such content. However, now there appears to be a more subtle strategy emerging, as she puts it.

As a movie buff who’s always tuned in to the latest trends, I find myself intrigued by the surge in streaming for traditional content, especially live news. This shift might just make live news more attractive to advertising agencies less concerned about the immediate broadcast environment. NBCUniversal is making a strong case for their news programming, highlighting research that suggests viewers are more likely to make purchases after watching. More news networks seem open to programmatic ad sales, which could be a win-win for marketers as they can dodge sensitive topics and heated discussions.

CNN, currently seeking a new head of sales, could woo advertisers with the prospect of fresh digital products in the pipeline. On the other hand, MSNBC could promote their revamped programming lineup, offering more airtime to former Biden White House counselor Jen Psaki.

Among all news outlets, it’s only Fox News that has experienced a significant rise in viewership after the 2024 presidential election. In the initial three months of this year, Fox News’ total day audience jumped by 48%, as per Nielsen data, and their viewership among audiences aged 25 to 54, which is highly valued by advertisers for news programming, increased by 58%. Traditional broadcast networks will probably concentrate on attracting a younger demographic of viewers between the ages of 18 and 49, and they’ll emphasize their news programming as a venue free from some of the intense debates that are common in many cable channels.

Ratings for Fox News are currently soaring, which appears to be positively influencing opinions on Wall Street. In a recent research note, Alan Gould of Loop Capital stated that Fox News is enjoying record-breaking cable news ratings, attracting over 100 new high-value advertisers, likely permanently taking a share from the ad budgets of general entertainment channels on cable, and is expected to exceed its projected performance.

On previous occasions, media executives have encountered similar arguments coming from Fox News. For quite a while now, they’ve been positioning Greg Gutfeld’s 10 p.m. show in competition with late-night content from Jimmy Fallon, Jimmy Kimmel, and Stephen Colbert, and Harris Faulkner’s mid-afternoon shows against programs like “The View.

Currently, there’s a push for growth, and Fox Corp.’s CEO Lachlan Murdoch views Fox News Channel as essentially a fifth major television network. In his remarks to investors, he noted that popular shows like “The Five” are on par with established broadcast hits such as ABC’s “American Idol” and CBS’s “Survivor” and “The Neighborhood.” Bret Baier’s program “Special Report” is often compared to the “CBS Evening News,” having surpassed it in some markets since its format was updated. Similarly, “America’s Newsroom” holds its own against several morning shows on the other major networks.

Initially, I was primarily recognized by my audience due to my prime-time opinion programming. However, lately, a wider selection of shows from Fox News has been garnering more attention and recognition.

According to Gargano, our focus is on the complete timetable. A large portion of it caters to millions of individuals each hour throughout the day. It’s not just about offering top-tier programming; we’re marketing our network as a top-rated choice for the majority of the day.

(The aim here was to make the language more conversational and easy to understand, while still maintaining the original meaning.)

Advertising agencies have frequently encountered proposals labeled as “broadcast substitutes”. Over the last decade, what was then known as Time Warner proposed its TNT and TBS cable channels, filled with original dramas and a late-night show fronted by Conan O’Brien, to be treated on par with NBC, CBS, ABC, and Fox. In 2018, the ex-Discovery Networks suggested creating a schedule that would span their different networks, mimicking the reach of prime-time broadcast TV. This plan encompassed lifestyle shows from channels like Food Network and TLC, among others.

Fox News stands out by avoiding scripted or reality shows, instead focusing on content that attracts massive concurrent viewership – showcasing its wider appeal.

After offloading most of its cable and studio assets to The Walt Disney Company in 2019, Fox News’ parent company has been dedicated to developing content that boosts live viewership. With President Donald Trump in office, Fox News has benefited from its connections to the White House – many of its former employees now hold key positions within the Trump administration – as well as its knack for attracting high-profile figures such as Elon Musk, a White House advisor, and astronauts Suni Williams and Butch Wilmore.

As a supporter speaking from my perspective, I can confirm that Fox News indeed presents an intriguing narrative in their negotiation strategy. During the election period, if you observe closely, you’ll notice where the usage and viewership were strong, where they were increasing, and where they were not. Whether or not this pitch will be successful, according to media buyers like me, depends on a variety of factors. These include the state of the economy, the pricing strategy Fox News adopts compared to other broadcasting outlets, and potentially other strategic moves they might make.

In the shifting landscape of television news, Fox News and its primary cable rivals, CNN and MSNBC, are encountering choppy waters as viewers transition from linear TV to streaming platforms. While Fox News, often leading in ad revenue among traditional networks, is estimated to generate $1.19 billion in advertising revenue by 2025 (as per Kagan, a research firm under S&P Global Intelligence), this is slightly less than the projected $1.23 billion in 2024. Typically, cable news networks experience a decrease in ad revenue during the year following a presidential election due to reduced viewership generated by the event.

According to Kagan’s predictions, CNN’s ad revenue is anticipated to decrease from $663.4 million in 2024 to $587.2 million in 2025. Meanwhile, MSNBC’s advertising income is expected to drop to $699.2 million next year, as compared to $752.4 million in the previous year.

One particular broadcast network might escape from Fox News’ new initiative, as this network is owned by their parent company. It’s worth mentioning that Fox News and the Fox broadcast network do not share any concurrent programming, and Gargano highlights that when it comes to dealing with advertisers, they operate collaboratively but separately.

Read More

2025-04-09 17:52