IPG Mediabrands Strategy Leaders Weigh in on the 2024 Upfronts
As evidenced by the recent Upfronts, the broadcasting landscape is undergoing significant transformation. Although network events were light on programming schedule details, they were rich with insights into the future of broadcasting. Dan Zangrando, EVP, Integrated Investments, UM; Magnus Nisbeth, VP, Investments and Operations; and Nathalie Dupont, Group Director Investments, Media Experts, have teamed up to share three key trends and what they mean for IPG Mediabrands and its clients.
Streaming and Target Segmentation – Redefining Audience Engagement
The broadcasting industry is moving away from long-established age demographics, which become less effective as media consumption habits evolve. As broadcasters face challenges around reduced viewership, they must find new ways to engage audiences and reassure advertisers of their reach and impact. “The shift away from age demographics is less about precision targeting and more about adapting to a landscape where the old metrics no longer suffice,” says Dan. “This underscores the need for broadcasters to manage audience decline while meeting their responsibilities to stakeholders."
This shift has profound implications for our media buying strategies. With CPMs and CPPs rising due to shrinking standard demographic audiences, the decision to adopt broader demographics (e.g., 18+) can be misleading. “It's like saying the average price of groceries is lower if you lump everything together, but that doesn’t reflect the cost of items we actually need,” says Magnus. “As media professionals, we must remain critical of these changes and ensure we’re making data-driven decisions that truly benefit our clients.”
Digital Solutions – Expanding Our Reach Beyond Traditional TV
Digital integration is no longer optional. The landscape is flooded with content, making the notion of "premium content" more elusive. "If everyone claims to have premium content, the term loses its meaning. And it’s not just about content; it’s about content that resonates and retains audiences,” says Dan.
Broadcasters are recognizing that their dominance in the linear TV space doesn’t guarantee success in the digital arena. "We’re in a golden age of content, but not all of it is premium. Popularity now defines premium, and there’s a lot more popular content outside traditional TV,” adds Magnus. “The importance of a multi-faceted content strategy that leverages both linear and digital platforms to engage diverse audiences effectively is more important than ever before.”
The Rogers Disruption – Shaking Up the Competitive Landscape
Rogers Communications has secured multi-year deals to acquire Canadian rights to several lifestyle brands from Corus Entertainment and Bell Media starting in the new year, including HGTV, Food Network, Discovery, and NBC Universal’s Bravo channel launching in September, learn more here.
This move has sent shockwaves through the Canadian broadcasting industry. With Rogers now the second-largest broadcaster in Canada, there are growing concerns about the stability of the broadcasting landscape. With fewer options available, the cost of media may be driven by a smaller group, leading to increased prices and limited choices.
"We haven’t seen a move like this since Rogers took the rights to the NHL eight years ago. The positive spin is that Corus can continue to be a Canadian production house, pivoting to become a content hub for Canada versus a US content distributor,” shares Dan.
"The fight to own content is hotter than it’s ever been," says Magnus. "Backroom deals and asset trading have moved us closer to a more aggressive U.S. style market. Owning appointment viewing is critical to attracting subscribers who are forced to make choices around subscription services."
In response, Corus is rebranding affected stations and emphasizing the success of their Canadian-produced content, which has driven the popularity of networks such as HGTV and Food Network.
"We must monitor audience metrics closely and engage in informed negotiations to protect our clients’ interests,” states Nathalie. “However, this disruption also presents opportunities. Corus now has a chance to double down on its identity as a Canadian content creator. If they play their cards right, this could lead to a strong rebrand and a renewed market position.”
Looking Ahead
As we move forward, it’s critical that we adapt and capitalize on these trends. By staying informed, leveraging our expertise, and remaining agile, we can navigate these changes with relative ease and continue to deliver exceptional value to our clients.