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From PepsiCo to GM, Big Advertisers Set to Cancel Commitments to TV Networks
The Wall Street Journal ^ | May 12, 2020 | Suzanne Vranica

Posted on 05/12/2020 8:56:03 AM PDT by abb

Big advertisers from General Motors Co. to PepsiCo Inc. to General Mills Inc. are seeking to walk back spending commitments they made to broadcast and cable networks, a dynamic that is testing the industry’s five-decade-old way of doing business.

TV ad spending fell in the initial weeks of the coronavirus pandemic, but was insulated from an even bigger drop. That is because the majority of the roughly $42 billion spent on national TV ads in the U.S. is bound by contractual commitments that are made well in advance of a new TV season, which starts each September.

Under those “upfront” deals, the first real opportunity since the pandemic struck for advertisers to cut back future spending commitments began May 1. Companies now have the option to cancel up to 50% of their third-quarter ad spending.

Many companies are seeking to take advantage of that option to varying degrees, including General Motors, PepsiCo, Cracker Barrel Old Country Stores Inc., General Mills, Domino’s Pizza Inc. and pharmaceutical giant Sanofi SA, according to people familiar with the discussions.

Ad buyers estimate that roughly $1 billion to $1.5 billion in commitments for third-quarter ad spending could be canceled. “The cuts are going to be pretty deep,” said Dave Campanelli, chief investment officer at media buyer Horizon Media.

(Excerpt) Read more at wsj.com ...


TOPICS:
KEYWORDS: adrevenue; advertisers; advertising; commercials; gm; networks; pepsi; television; tvnetworks
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It wasn't supposed to work out this way. Only Deplorables would lose THEIR jobs, so the plan went...
1 posted on 05/12/2020 8:56:03 AM PDT by abb
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To: abb

Notice that the media folks are sending women with the nasty questions.


2 posted on 05/12/2020 8:57:57 AM PDT by Sacajaweau
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To: abb

More signs that we are headed for economic trouble. The big boys are desperately trying to hide it all so they can salvage as much as they can before the leave the little people holding the bag.


3 posted on 05/12/2020 8:59:06 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: abb

This COVID is changing business models left and right.


4 posted on 05/12/2020 9:00:08 AM PDT by BBQToadRibs
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To: abb

For all I care, 90% of TV networks can shut down.


5 posted on 05/12/2020 9:01:27 AM PDT by caver
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To: abb

The networks will be demanding bailouts


6 posted on 05/12/2020 9:01:40 AM PDT by vigilante2 (Make liberals cry again)
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To: abb

Maybe a few of these corporate brands are finally figuring out that many of us do not watch the garbage news and TV shows these networks churn out day after day. Even Three’s Company looks like Masterpiece Theatre compared to a lot of the trash on nowadays.


7 posted on 05/12/2020 9:01:43 AM PDT by OttawaFreeper ("The Gardens was founded by men-sportsmen-who fought for their country" Conn Smythe, 1966)
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To: abb

Yes!


8 posted on 05/12/2020 9:03:01 AM PDT by brownsfan (Behold, the power of government cheese.)
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To: abb

It should be interesting how much, and where, the (reduced) monies may go.


9 posted on 05/12/2020 9:03:28 AM PDT by Road Warrior 04 (Boycott The NFL! Molon Labe! Oathkeeper)
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To: abb

TV sucks,We watch Blacklist,Live PD.My husband put it on last night.Nothing on,he turned it off.


10 posted on 05/12/2020 9:03:35 AM PDT by fatima (Free Hugs Today :))
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To: caver
For all I care, 90% of TV networks can shut down.

"No advertisers" pretty much means "no TV".

11 posted on 05/12/2020 9:03:43 AM PDT by Sans-Culotte (With every passing day, I am a little bit gladder that Romney lost in 2012.)
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To: MeneMeneTekelUpharsin
There's an interesting dynamic at work here.

Some of these corporate giants are cutting their ads because customers are losing discretionary income.

Others may be cutting their ads because they don't NEED ads right now. Does Domino's Pizza really need to advertise at a time when restaurants are closed for sit-down service all over the country?

12 posted on 05/12/2020 9:04:22 AM PDT by Alberta's Child ("And somewhere in the darkness ... the gambler, he broke even.")
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To: Sans-Culotte

If the host dies, the parasites starve. Every time.


13 posted on 05/12/2020 9:04:45 AM PDT by abb
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To: abb

Good bye, Liberal Main Stream Media!


14 posted on 05/12/2020 9:04:56 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: abb

Good, the networks can make their own cuts, perhaps starting with the children they send to the WH pressers.


15 posted on 05/12/2020 9:05:31 AM PDT by 1Old Pro (#openupstateny)
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To: abb

Advertising work is fundamentally parasitic, drawing resources from food in stomach, clothes on back, shelter over head. Pushing obsessive consumption of unnecessary items, by playing on a wide array of vices., and warped responses to “beauty” and pleasure.


16 posted on 05/12/2020 9:06:08 AM PDT by HangnJudge (The Democratic Party is a Pandering Plutocracy)
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To: Sans-Culotte

“No advertisers” pretty much means “no TV”.

And the downside is?


17 posted on 05/12/2020 9:06:37 AM PDT by caver
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To: abb

Hopefully this will finally sink CNN.


18 posted on 05/12/2020 9:06:37 AM PDT by Paladin2
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To: BBQToadRibs
Maybe the sponsors are waiting for the way this whole re assessment of the "O" Presidency will shake out. It's pretty definite that Liberals and for sure, the "O" Presidency are in line for a black eye. It's possible that the sponsors feel a need to 're calibrate' their promotions.😊 I sure hope so! I'm real tired of the Ra Ra Liberal message!
19 posted on 05/12/2020 9:07:21 AM PDT by SMARTY ("Nobility is defined by the demands it makes on us - by obligations, not by rights".)
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To: Alberta's Child

Thanks to recent corporate decisions, CFA recently had to begin aggressively advertising, and still does in my neighborhood.


20 posted on 05/12/2020 9:07:33 AM PDT by treetopsandroofs
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