Commentary

How Media Buyers Can Take Advantage Of The Changing Daytime TV Landscape

It seems every day brings a new development in the recent revolving door of TV anchors. Consider the list of uncertainties: Oprah's top-rated talk show is leaving syndication in May, but the uber-popular host may launch a variation on her Oprah Winfrey Network on cable next fall.  Regis is moving on from "Live with Regis & Kelly."  Ann Curry will take over as a "Today" host when Meredith Vieira leaves this year.  Matt Lauer may also exit the morning show when his contract expires, and his former co-host Katie Couric has confirmed that she is signing off from the "CBS Evening News." She may possibly join ABC in a $20MM deal.

While the current landscape resembles a "Wheel of Fortune" episode, one thing we know for sure is that it will mean further erosion of the broadcast networks' stranglehold on daytime TV, leaving the media industry to debate, "Where will viewers go?"

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Recent speculation that Couric may return to TV on a syndicated talk show potentially endangers yet another beloved soap, "General Hospital."  Already, ABC has canceled two long-running soaps, "All My Children" and "One Life to Live." The network will replace the scripted programs with a food show called "The Chew," hosted by Mario Batali that will premiere in September after "All My Children"'s finale, and a health/lifestyle show called "The Revolution" that will debut in January when "One Life to Live" bows out. 

CBS eliminated two of its classic daytime dramas, "Guiding Light" in 2009, and "As the World Turns" in 2010, but continues to air "The Young and the Restless" and "The Bold and the Beautiful."  NBC broadcasts just one soap, "Days of Our Lives."  Why is this happening?  Fewer housewives are watching scripted dramas, and the talk show format is less expensive to air than soap operas, which have large casts and production crews.

However, fans of the soaps are not taking these changes lying down.  After ABC announced the demise of "All My Children" and "One Life to Live," Los Angeles Times columnist Meg James wrote, "Soap fans are making noise, and, as a result, powerful people are listening. They have reporters who cover every industry from the economy to psychology scrambling to get an angle on what's going on and the impact it will have."

Indeed, Facebook and Twitter are full of outraged viewers leading protests against ABC; in fact, they have been the primary medium for rallying the troops. While this outcry may fall on deaf ears, it has shown that daytime TV consumers are anything but myopic in their media preferences. 

What's next?

Media buyers are busy analyzing the changes to come, but daytime viewers aren't gone yet.  Viewers will flock to the series finales for the ABC soaps and to the last shows of Oprah, Regis, Meredith, Katie and Matt. Advertisers will pay a premium for these final episodes, but they are also in the negotiating catbird's seat with the networks for the new programming to come. 

Industry experts are debating whether the forthcoming daytime reality shows will hold viewers, creating new opportunities for advertisers, or whether viewers will gravitate away from network-based shows to cable programming, where pricing is as competitive as ever.

Step one: Research

Those who know their customers are devising various approaches to the next six months of their daytime media planning. The soap backlash has shown it's not safe to assume that daytime TV watchers equal sedentary stay-at-home moms, while TV networks' research has told them that producing non-serialized shows that do not have to be watched daily is less costly, more convenient, and more relevant to today's daytime viewers. Networks are seeing that in the success of shows like Dr. Oz and going with it. These shows appeal to a younger and broader audience. Does your target customer fall within this new range?

Step Two: Planning

When events such as the realignment of daytime TV threaten the strategy for reaching target audiences, media specialists need customized research tools to discover whether consumers are tuning into new soaps, gravitating to talk shows, or switching to other options. 

When looking at media buys in the future, "Oprah" will remain the example in daytime for why an advertiser would pay a premium for the same rating it could get from a "Judge Judy" or other show. Oprah's formula was eloquently simple: quality content + loyalty to on-air talent = influential brand association = product sales.  Ultimately, it meant paying a premium for a spot in her show because "Oprah" delivered a positive brand association and high awareness for sponsors, typically leading to increases in sales.   

Step Three: Better Buying

Cable is already strategizing to siphon away daytime network viewers and is looking to play "Let's Make A Deal."  Meanwhile, demographically targeted websites and blogs are consolidating and growing, offering promising placement opportunities for advertisers who know how to find the best avenues for their messaging.  Strong negotiators who understand both network and cable TV -- and their multi-dimensional aspects -- are in a position to deliver superior value for their clients in the coming year.

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