The Writer’s Guild of America started its strike on May 1 to negotiate on a number of issues including pay, streaming residuals and methods of creative output. The strike has upended numerous events in the entertainment industry, shutting down late night television and upending upfront presentations and the Tony awards. While the strike has significantly impacted these events, and put into question future programming, ad spend has not yet been impacted.
In an analysis conducted in mid-May among TV and streaming advertisers, advertisers stated that it is business as usual for now. Between the pandemic and the current volatile macroeconomic landscape, advertisers have become experts at weathering disruption. In their view, disruption is the new normal and they’re confident that they can manage any potential impact on their advertising plans caused by the writer’s strike.
While there is some uneasiness about the strike and the diminished options for ad placements, advertisers don’t see the strike greatly impacting advertising decisions at this time. Most feel that there is plenty of content available between sports and non-scripted programs as well as video on demand. Very few advertisers said that they would likely hold back their ad spend due to the strike.
Additionally, advertisers that have already committed budgets to programming requiring imminent writing, filming, or production, will look to move those dollars within the programmer’s ecosystem. Advertisers, of course, will expect makegoods for any buys impacted by the strike due to low ratings and audience loss; they plan to keep their commitments with their current partners and expect their partners to meet their guarantees. As such, we do not expect a significant shift of TV spend to other media channels due to the strike.
However, should the strike drag on, especially into the fall months, advertisers acknowledge that it will result in less availability of premium inventory and potentially impact ratings and campaign deliveries. In that case, advertisers may rethink their spending and contingency plans.
Erin Firneno is VP Business Intelligence at Advertiser Perceptions
