BusinessMay 13, 2024
Retail Media Ads Have Grown Nearly 50x Over the Past Decade, Challenging the Dominance of Linear TV.
Marketing Pivot
Victor Lei
Discover
It’s not just viewers getting tired of traditional TV commercials; advertisers are also tuning out. Hershey’s US head of media and analytics revealed that the portion of ad dollars allocated to TV has fallen from 80% to 30% over the past few years (WSJ), a trend mirrored across other consumer goods companies. Instead, advertisers are redirecting their marketing budgets towards social platforms like Instagram and TikTok, which are increasingly making their way into “retail media.”
The last pillar of TV: One aspect of linear TV that remains resilient is sports programming. In 2023, sports broadcasts accounted for a staggering 96 out of the 100 most-watched broadcasts. Yet, even this arena is witnessing a transition to streaming platforms like Amazon and Apple — and ad dollars could follow. Molson Coors, for instance, has significantly adjusted the portion of its TV ad budgets allocated to sports, from nearly half to 80% over the past five years. That’s sent the value of TV deal rights skyrocketing — with the NBA set to sign a $76B broadcasting deal over 11 years, marking a threefold increase in value from its current agreement.
