Streaming-Era Commercials Invade Forbidden TV Territory: Presidential Debates, HBO Shows and Other Content Once Deemed Off-Limits

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For quite some time, Donna Speciale has held a significant position among the ranks of influential figures in the advertising sector. However, despite her extensive experience and influence, there have been certain tasks that have eluded her capabilities throughout her career.

Approximately twenty years ago, Speciale, who was a senior media buyer at MediaVest responsible for negotiating commercial time prices and terms, proposed an interesting concept to TV networks: Could her company purchase an entire ad break and arrange it with client ads in such a way that viewers wouldn’t change the channel or go get a snack? For instance, the trailer for a movie might play before an ad for a floor cleaner. This strategy could potentially keep viewers engaged – and ratings might increase as a result.

Television networks had compelling motives to gain her goodwill, as it turned out that Speciale’s clientele encompassed significant players like Procter & Gamble and Walmart, in addition to other big-spending entities. However, no one permitted her to conduct the experiment, for the reason being that the networks sought to maintain control over their primary commodity – the content broadcast on television.

Initially reluctant, they’ve decided to ease their control. Last year during the Paris Olympics broadcasted by NBC, a media buying firm named GroupM was unexpectedly given the opportunity to purchase an entire commercial break and fill it with advertisements from its clients such as Google, Target, and Coca-Cola. This was likely facilitated because one of the companies involved was NBCUniversal’s own Universal Pictures.

Speaking as the current head of U.S. advertising sales and marketing for the multinational Spanish-language network TelevisaUnivision, Speciale reflects that in the past, there was no necessity for everyone to perform the task we were attempting. However, she notes, with the advent of streaming, times have significantly shifted. Now, everyone is striving to restructure the system. In her opinion, all possibilities are open for discussion.

2024 presidential debate commercials, once aired commercial-free as a public service, are now being sold to advertisers by both CNN and ABC. Similarly, Netflix, which had previously refused to run ads, has started allowing marketers into its live sports broadcasts and scripted favorites on its lower-tier subscription plan. Amazon Prime Video is aggressively seeking TV advertising dollars, as is HBO, whose programs were traditionally commercial-free but now contain ads on Max, a streaming platform backed by Warner Bros. Discovery. Additionally, Paramount Global has made deals that allow companies like Ram Trucks and Duluth Trading Co. to create adverts themed around “Yellowstone” that appear during the show’s ad breaks.

Even the notorious ad-averse ‘Saturday Night Live’ has joined the trend during its 50th season. In collaboration with brands like Capital One, Allstate, and Volkswagen, the show’s creators and performers have permitted these companies to incorporate well-known characters into their advertisements.

It seems that media giants are becoming less rigid and more willing to make deals, primarily due to the surge in popularity of streaming platforms. As streaming services begin to incorporate advertising, they are now open to negotiating various business arrangements. This observation was made by Brian Sheehan, a professor of advertising at Syracuse University.

In today’s environment where viewers often tune out ads, advertisers like Michelle Deignan, Vice President of Mondelez’s Oreo, suggest that they should present themselves in unique and attention-grabbing ways. As much advertising blends into the background, our task is to stand out from the crowd.

Media firms are not only welcoming areas previously considered taboo, but they’re also consenting to intricate and challenging advertisement breaks, which can be quite tricky to set up.

Disney recently made an arrangement with PepsiCo, where they sold a third of their commercial airtime for one whole day on ABC. This allowed Frito-Lay, a subsidiary of PepsiCo, to broadcast eight separate ads featuring actor Stephen Tobolowsky across various shows like “Good Morning America,” “GMA3,” “General Hospital,” “Shark Tank,” “20/20” and “Jimmy Kimmel Live.” This was a unique instance where ABC had a full-day sponsorship agreement with a single advertiser for the first time.

According to Chris Bellinger, the current direction of advertising involves many individuals disregarding the rules. However, our focus has always been on ensuring that everything functions smoothly until it stops working effectively. Chris Bellinger is the chief creative officer at PepsiCo’s food operations, which encompasses Frito-Lay.

As a dedicated fan, I’ve noticed a potential shift in my favorite streaming services. For instance, Disney has recently hinted at a possible increase in commercials across Hulu, ESPN+, and Disney+ starting from March 24. They mentioned that as they expand their content offerings, certain titles or types of content might include advertisements, even within subscription tiers labeled ‘no ads’ or ‘ad-free’. Historically, this move has been associated with live events or sports broadcasts, where the content is similar to what one would see on traditional television.

Despite the prestigious Super Bowl’s reputation, even it wasn’t exempt from commercial tie-ins this year. Fox Sports played a part in three different promotional campaigns for the Big Game, such as granting announcers Tom Brady and Kevin Burkhardt to feature in a battery advertisement from Berkshire Hathaway’s Duracell. Additionally, sportscasters Julian Edelman and Charissa Thompson were approved to appear in Super Bowl previews for Georgia-Pacific’s Angel Soft. Moreover, Fox Sports collaborated with Rocket Cos. to capture fifteen seconds of live footage from the Caesars Superdome, aiming to create a live-crowd sing-along that complemented a commercial they ran during the event. Initially, Fox executives were skeptical about the success of this stunt, and their doubts seemed justified as the crowd largely disregarded attempts to get them to sing John Denver’s “Take Me Home, Country Roads.

Previously, such occurrences were uncommon and not everyday events. This is why Procter & Gamble garnered a lot of attention in 2017 when Fox let announcer Terry Bradshaw appear on camera with a conspicuous stain on his shirt. In mere seconds, he was off to clean his clothes, part of a Super Bowl commercial for Tide laundry detergent. The transition from real-life action to Madison Avenue messaging was unusual. However, according to Mark Evans, executive vice president of ad sales for Fox Sports, “we’re seeing more of it now.

Overrelying too heavily on these packages can potentially lead to trouble. If news organizations sell all their exclusive ideas, what unique content will they be able to provide down the line? Now that advertisers have tasted the forbidden fruit, might they demand even more offerings in the future? And how long can a business survive when it relies frequently on “one-time” perks such as commercial-free hours during events like the Olympics and hard-to-get extras?

In a recent turn of events, I’ve been appointed as the President of U.S. advertising sales at Warner Bros. Discovery, and let me tell you, it’s quite an interesting ride. Lately, we’ve been witnessing some truly spectacular marketing deals gracing our industry, but here’s the catch – not every day can be a repeat of these jaw-dropping packages. The reason? They might not align with the viewing preferences of our audience or even the longevity of our partnerships.

Now, you might wonder what I mean by that. Well, we at Warner Bros. Discovery engage in thought-provoking discussions with advertisers and their representatives, and believe me, they don’t shy away from making bold demands. On occasion, brands ask us to do things that, in our professional opinion, may not serve the best interests of user experience or the sustainability of our collaborations. Needless to say, these talks aren’t always a walk in the park.

Although we might think that’s all, there could be even more [of them]. As Bridget Sponsky, executive director of brand and sponsorship marketing at financial-services company Ally Financial, explains, today’s media landscape is drastically changed. It’s no longer sufficient to air traditional ads, disrupting viewers’ experience. Instead, we must seamlessly blend our messages with the purpose behind their presence, demonstrating how our sponsorship investments enhance their viewing enjoyment.

In today’s climate where traditional ad revenue is less stable, confronting major sponsors becomes more challenging due to an increasing trend of advertising dollars shifting towards streaming platforms. Essentially, Madison Avenue’s funds are moving significantly towards streaming services. During the latest “upfront” market, a period when most video commercials are sold, there was a significant increase of 35.3% in ad commitments for streaming video platforms, reaching $11.1 billion, as reported by consultancy Media Dynamics Inc., compared to $8.2 billion in the previous year. For the upcoming TV season, more money has been pledged for streaming video than for primetime broadcast ($9.34 billion) or primetime cable ($9.065 billion), marking a first for the industry.

In the realm of streaming, advertisers have limitations due to its nature. For instance, those who subscribe to ad-supported tiers are drawn there partly because commercial breaks are less frequent compared to traditional TV. However, one challenge with streaming is that media firms may repeatedly show the same advertisement to a single subscriber, an effort to ensure viewership impressions in a platform where viewers often choose their own viewing times. This repetition can be a concern. As more people switch to streaming, advertisers are increasingly eager to optimize their investments in content by making smarter choices. Dario Spina, Chief Marketing Officer of Paramount Global’s advertising division, notes this trend, suggesting that advertisers are now focusing more on major events and live programming to maximize their reach.

Previously, advertisers would broadcast the same commercial across various platforms, a method called “scattershot approach” or “shoot and hope.” The goal was to create numerous impressions among a large number of viewers in order to encourage them to make a purchase. Nowadays, advertisers like Rita Ferro, president of Disney’s ad-sales operations, aim to establish personalized connections with specific programs to ensure that their advertising dollars are effectively reaching and impacting the target audience.

According to Ferro, there’s no advertising partner who doesn’t initiate discussions by expressing the desire for something uniquely innovative.

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2025-02-19 22:48