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Gluck's product-infused formula is rapidly becoming a model for network TV's survival. Thanks in part to technologies like TiVo-which growing numbers of folks are using to blitz past commercials and watch TV on their own schedule-the ad-driven prime-time business model that has existed for decades is under assault as never before. In New York City last week, broadcast execs showcased their best hopes for luring viewers back this fall, unveiling dozens of new dramas, sitcoms and reality shows. If history is any guide, most of them will flop, with shows aimed at young...
While the gloomy financial picture may have something to do with a lack of must-see TV, it's hard to overestimate the challenges posed by ad skipping. At least 6.4 million households now have digital video recorders (DVRs) like TiVo. Cable and satellite providers are pushing the technology hard-40% of households are expected to have DVRs by 2009-while the cable guys are also pitching video on demand (VOD), another technology consumers use to watch content on their own schedule. "VOD is the ultimate worry for us," says Jon Mandel, chairman of the ad-buying firm MediaCom...
...wonder some advertisers are turning off the tube. American Express has slashed the TV share of its ad budget from 80% a decade ago to less than 35%, replacing commercials, in part, with online mini-films. Pepsi recently relaunched Pepsi One without any TV advertising, which execs at the firm say wouldn't have been the case five years ago. Reebok has also shifted marketing dollars to new media, partly at the expense of the TV budget. "If you look at youth and how they consume media, TV is still an important part of the mix, but especially for young...
Madison Road Entertainment, a self-described "advertiser-driven television studio," is one of several new companies that specialize in matching the interests of Madison Avenue and Hollywood. "This is a new creative space," says Tom Mazza, president of the Los Angeles start-up, which conceives and plots shows with ad clients in mind and pitches the resulting "advertainment" to the networks. Mazza's firm was behind the Rolaids plug in The Bernie Mac Show and brought Levi's, Crest and Mars to The Apprentice. His company also co-developed a reality show called The Treasure Hunters that NBC picked...
...muscling in on the development of scripted shows sounds scary, get ready for the next wave. While the networks were presenting their fall lineups last week, media buyers for Sears, for instance, were working up product-integration deals as part of their traditional ad buys. Already a big presence in ABC's Extreme Makeover: Home Edition, Sears was eyeing new sitcoms like the WB's Supernatural, and the company isn't interested in providing an appliance as a background prop. "That's not enough to make people shop at Sears," says Perianne Grignon, vice president of media services for Sears...