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State of the Screens

Fox Wants to Reduce Ad Time to Two Minutes per Hour by 2020

By March 12, 2018No Comments

Fox announced a goal of reducing TV ad time to 2 minutes per hour by 2020.

Current/Proposed ad time per hour (% change):
1)
2018 – 13m
2)
2020 – 2m (↓ 85%)

How could Fox potentially make up the lost revenue from fewer minutes of ads?
1) Increase the cost of each remaining ad
2) Run shorter ads (6s, etc.)

How would the math for #1 work?
1)
2017 Primetime — $43/CPM
2)
2020 Primetime — $280/CPM

A 3rd option. Hulu is testing interactive ads that let the user buy products such as movie tickets directly in the ad. Ads that lead directly to sales would command higher prices (think Google search CPMs).

Flashback. NBCU Cuts Ad Time in Original Prime-time Shows by 10%

More. TV Nets Cut Ad Time, And Time-Shifting May Be To Blame

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.