Mark Orton, Director – Media and Client Services at Kingstar Media
What will demand be like for Media Buyers?
Several of the major telecom networks have posted weaker than expected quarterly results recently citing lower ad demand on legacy media channels as a reason why. The Upfront season traditionally is the biggest buying season of the year but with the ongoing shifts in media consumption along with brands wanting more flexibility it is likely we will only see moderate demand for ad space with CPM’s likely staying somewhat soft. As video viewership as well becomes more fragmented, Online Video ad spend will continue to increase due to both it’s flexibility and more narrow demographic targeted abilities.
How are the current shifts in viewership affecting the TV Landscape?
The ongoing shifts in viewership towards streaming options has affected how TV content is consumed and the pivot of looking at both Linear & Connected TV as one “Total TV” platform is starting to take shape. With recent advancements in measurements by Numeris & NLogic, advertisers need to start planning video as holistic campaign and not separating into two different media channels. Linear TV audiences are declining however very minimally YoY amongst Adult 35+ who control the vast majority of buying power. With this we should expect both networks and media buyers to assert that in order to achieve maximum penetration amongst the consumer, a combined approach of both Linear TV (mass awareness) & Connected TV (narrow zone-in targeted) is the current path forward.
What Content will be the Focal Point?
Aside from sports content, we have seen more and more scripted programming shift towards the major traditional streamers (Netflix, Amazon, Disney, etc..) which can be attributed to several factors such as increased production costs & decline of appointment viewing. These factors (along with the recent SAG/WAG strikes) have lead to broadcasters putting a focus on more cost efficient programing namely Game Shows & Reality TV. Expect this to continue this year along with network focus on their Online Video offerings. In addition, there is an ongoing struggle between the broadcasters and the CRTC with current Canadian Content mandates putting a large financial strain on networks while online streamers remain relatively exempt from these mandates. Until this is resolved, there will still be a large influx on Canadian content showcased by the networks.
What about Sports Viewership?
Sports viewership remains the behemoth of live content and overall audience draws with almost every top watched program being a sports property. With this, we can expect the major sports content providers (Bell-TSN & Rogers-Sportsnet) to push big on both major upcoming sporting events (Euro 2024 & Olympics) and annual sporting leagues such as NHL, MLB & NFL. Women’s sports as well are seeing a big surge in viewership with the WNBA & recently launched PWHL taking in big audience numbers. One thing though to keep an eye on is that streamers are consistently moving in on traditional broadcaster sporting rights with Netflix recent acquisition of WWE & Amazon’s Monday night hockey deal with Rogers. Expect this pressure to continue in the future especially with the lucrative NHL rights in Canada coming up for renewal in 2026.
What is expected from streaming “battleground”?
“Battleground” That is the word to describe the current state of the endless streaming options available to Canadians. With the streamers now all essentially offering ad supported tiers at much lower rates than their ad-free options, expect fierce competition amongst these suppliers on the content side in order win the viewer. With so many options available it is inconceivable for any household to have a subscription to every streaming platform so we will see suppliers go over and above to get fresh content in an effort to lure the consumer. As this battleground intensifies, expect to see the major broadcast networks put a big focus on both their Ad Supported subscription CTV platforms (Crave, Stack TV, TSN/SN+ etc…) & FAST platforms (Pluto, Tubi, GEM, Bell FAST, etc…) as they pivot towards focusing on combined Linear & CTV marketing approach.
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