US networks turn talent brokers to recover diminishing ad dollars

NBCUniversal (NBCU) is taking a new approach in order to strike more lucrative ad deals: acting as a broker of endorsement deals between brands and on-screen celebrities. 

As US TV networks launch into their annual round of ad sales pitches, known as Upfronts, executives know they face an uphill task, with ratings for traditional linear TV on a steady downward trajectory as audiences migrate in increasing numbers to streaming services with ad dollars following, per the Wall Street Journal.

The details

• US home-goods retailer Wayfair spent two years trying to attract singer and TV personality Kelly Clarkson to sign an endorsement partnership before, according to both NBCU and Wayfair, NBC stepped in and played a key role in brokering a deal. NBCU produces the syndicated “The Kelly Clarkson Show” and often features Ms Clarkson on its “Today” show.
• NBCU’s role in the agreement led, ultimately, to a Wayfair ad campaign deal with NBCU, featuring the star on a number of the network’s properties and a new Wayfair “Kelly Clarkson Home” product line. 
• Networks have long rolled out stars to promote shows during Upfronts week, but NBCU is developing this role, planning to showcase a strategy of featuring stars across a number of channels in order, it hopes, to partner them with brands for bigger advertising deals.

Takeaway

“The strategy reflects a movement toward fewer, longer-term TV ad deals as the continuing decline of traditional TV ratings pressures networks to think up new options for advertisers. Marketers, meanwhile, are looking for new ways to get in front of consumers as they watch less traditional TV" - Alexandra Bruell, The Wall Street Journal

Sourced from the Wall Street Journal