When entertainment industry strikes occur, full-service paid media agencies and media outlets must adapt to navigate the landscape.
As an example, the 2023 Hollywood strikes against the Alliance of Motion Picture and Television Producers (AMPTP) sent shockwaves through the entertainment industry. Although the Writers Guild of America has reached an agreement with AMPTP, SAG-AFTRA is still on strike.
As strikes evolve and resolve, what are the impacts on paid media platforms, media plans, and advertising strategies?
Potential Impact on TV Broadcasters and Streamers in Paid Media
During lengthy strikes such as these, broadcasters and streamers may experience a surge in profits. While many popular, scripted shows are on hold during strikes, viewers turn to alternative programming options offered by these platforms. This presents an opportunity for media planners to recommend broadcasters and streamers to capture a larger share of audience attention during this period. A tactic that is current with the times and possibly short-term media behaviors.
TV broadcasters become particularly vulnerable when strikes extend beyond six months. Prime time advertising, traditionally a lucrative segment, suffers as long as scripted content is on hold. Advertisers relying on prime time slots may need to explore alternative strategies or reallocate campaign budgets to ensure maximum reach and effectiveness. The longer strikes continue, the more difficult this becomes as inventory becomes increasingly tight. Combine tight ad inventory with what is shaping up to be a record-setting election cycle in terms of ad spend, and we end up with even more pressure on specific, nuanced campaign tactics.
The Effect on Media and Entertainment Advertising
There are inevitable challenges when advertising across various formats during strikes. In the entertainment industry, advertisements tied directly to affected shows or productions are often reevaluated or postponed until normal operations resume. Brands operating within this space must closely monitor developments and make necessary adjustments to their media plans.
A prolonged strike could drive more English-language production outside of the US. Studios sometimes seek locations with fewer labor restrictions to ensure uninterrupted filming schedules. In this scenario, media plans might require fewer adjustments over time as new shows are still being produced.
Paid Media Opportunities for Streaming, Sports, News and Social Platforms
While traditional television grapples with strikes, streaming and social platforms witness a resurgence in viewership and ad revenue. When audiences seek alternative content options, these platforms capitalize on the increased demand. While there are consistent benefits to adopting an omnichannel paid media plan, marketers should prioritize diversifying their paid media strategies even more during strikes to include advertising on streaming services and social media platforms.
Sports and news content often emerge as valuable commodities during strikes. NBCUniversal has seen advertising sales for the Paris 2024 Olympics nearly double compared to the Tokyo Olympics in 2020. When scripted programming is on hold, media planners and buyers often turn their attention to live sports events and news broadcasts. These segments could command a premium for ad placements, presenting an opportunity for brands looking to maximize exposure in a limited advertising landscape, albeit a bit costlier than usual.
Uncertain Future of Advertising Investment
While the full advertising impact of the 2023 strikes remains uncertain, pivots and realignments are certainly necessary. It is imperative your media agency closely monitors developments, adapts strategies accordingly, and remains agile in response to changing market dynamics.
Need help navigating today’s paid media landscape? Contact us to maximize your advertising budget with contextualized and informed media planning.
When entertainment industry strikes occur, full-service paid media agencies and media outlets must adapt to navigate the landscape.
As an example, the 2023 Hollywood strikes against the Alliance of Motion Picture and Television Producers (AMPTP) sent shockwaves through the entertainment industry. Although the Writers Guild of America has reached an agreement with AMPTP, SAG-AFTRA is still on strike.
As strikes evolve and resolve, what are the impacts on paid media platforms, media plans, and advertising strategies?
Potential Impact on TV Broadcasters and Streamers in Paid Media
During lengthy strikes such as these, broadcasters and streamers may experience a surge in profits. While many popular, scripted shows are on hold during strikes, viewers turn to alternative programming options offered by these platforms. This presents an opportunity for media planners to recommend broadcasters and streamers to capture a larger share of audience attention during this period. A tactic that is current with the times and possibly short-term media behaviors.
TV broadcasters become particularly vulnerable when strikes extend beyond six months. Prime time advertising, traditionally a lucrative segment, suffers as long as scripted content is on hold. Advertisers relying on prime time slots may need to explore alternative strategies or reallocate campaign budgets to ensure maximum reach and effectiveness. The longer strikes continue, the more difficult this becomes as inventory becomes increasingly tight. Combine tight ad inventory with what is shaping up to be a record-setting election cycle in terms of ad spend, and we end up with even more pressure on specific, nuanced campaign tactics.
The Effect on Media and Entertainment Advertising
There are inevitable challenges when advertising across various formats during strikes. In the entertainment industry, advertisements tied directly to affected shows or productions are often reevaluated or postponed until normal operations resume. Brands operating within this space must closely monitor developments and make necessary adjustments to their media plans.
A prolonged strike could drive more English-language production outside of the US. Studios sometimes seek locations with fewer labor restrictions to ensure uninterrupted filming schedules. In this scenario, media plans might require fewer adjustments over time as new shows are still being produced.
Paid Media Opportunities for Streaming, Sports, News and Social Platforms
While traditional television grapples with strikes, streaming and social platforms witness a resurgence in viewership and ad revenue. When audiences seek alternative content options, these platforms capitalize on the increased demand. While there are consistent benefits to adopting an omnichannel paid media plan, marketers should prioritize diversifying their paid media strategies even more during strikes to include advertising on streaming services and social media platforms.
Sports and news content often emerge as valuable commodities during strikes. NBCUniversal has seen advertising sales for the Paris 2024 Olympics nearly double compared to the Tokyo Olympics in 2020. When scripted programming is on hold, media planners and buyers often turn their attention to live sports events and news broadcasts. These segments could command a premium for ad placements, presenting an opportunity for brands looking to maximize exposure in a limited advertising landscape, albeit a bit costlier than usual.
Uncertain Future of Advertising Investment
While the full advertising impact of the 2023 strikes remains uncertain, pivots and realignments are certainly necessary. It is imperative your media agency closely monitors developments, adapts strategies accordingly, and remains agile in response to changing market dynamics.
Need help navigating today’s paid media landscape? Contact us to maximize your advertising budget with contextualized and informed media planning.
