Digiday – Think about it: the cost of linear TV is rising because people are watching more on demand while the cost of on demand impressions is relatively static because most advertisers are buying them at set prices. In other words, the more advertisers spend on reaching a broadcaster’s addressable audience, the more expensive it becomes to reach their linear counterparts.
“Networks will point to live events & sports as rationale, but those audiences too are migrating to streaming options,” said Craig Stein, senior consultant at independent search consultancy R3. “As such, it’s incumbent on marketers and their agencies to push the networks for more advantageous pricing for Linear TV buys, especially as spend will continue to shift digitally. Inflation alone cannot justify the current marketplace dynamics.”