Tuesday, January 15, 2008

Chrysler Shifts Ads to Sports, Web as Writers Strike

Now if the AMPTP have a reason to worry, it might just be that the writers strike will be the tipping point to monies leaving TV for new media. Automobile advertising is one of the largest segment of ad dollars for broadcast, cable, and spot sales. As interesting and compelling programming stops being produced, the viewer seeks out fresh alternatives and the ad money follows. In the case for autos, opportunities exist on new video sites like NextNewNetworks niche channel Fast Lane Daily, as well as dozens of other websites. Opportunities also exist on VOD; networks like Lifeskool (formerly MagRack) have niche channels like Auto Access, a perfect "new" place to target ad dollars.

So television appears to lose from the writers strike and new media appears to gain. In reality, as far as the AMPTP is concerned, it may simply be shifting dollars, lost from one pocket but added to another. These same corporations tend to be equally as diversified, with their assets spread across new media. CBS as an example owns Wallstrip, and has just moved their host, Lindsay Cambell to a new video website, moblogic. Time Warner offers automobile programming on demand across their cable systems. So these conglomerates simply have to push their ad sales groups harder to take these ad dollars. And with deep pockets, they can handle the loss of revenue knowing that their costs are being cut too. Web divisions tend to need fewer people to operate so the margins may be able to grow at a faster rate.

Yes, the entertainment landscape is changing, but the big fish stay big for a reason. They can manage through the shift and maintain their strength in the long run.