Marketing and all things related

The Wall Street Journal is running a front page story today that Allstate Insurance and other advertisers are bucking the rules for traditional ad buys on network television. The old-boy networks traditionally wine and dine advertisers, showcase their fall line-up at lavish screening parties, and then try to lock-up year-long advertising contracts. But with network television viewership dropping 2% again last quarter, Allstate is no longer willing to gamble with a long-term upfront commitment. Instead, the WSJ reports that:

“For the current season, Allstate took a dramatically different approach, one that highlights how the industry's balance of power is shifting away from the networks. The insurer slashed its upfront spending to $10 million from $70 million two years ago. Then, rather than spread its money around to various networks, as had been the custom, it asked them to make all-or-nothing proposals to win the business.”

Allstate Chief Marketing Officer Joe Tripodi says, "the upfront is a vestige of an old world order. One day somebody will wake up and realize the business model isn't viable any more." Both ABC and CBS bid on the Allstate contract which was finally awarded to CBS. (The WSJ article entitled Marketer's Tactic Signals Big Shift In a TV Ad Ritual is only available to paid subscribers.) Marketing Blurb reminds readers that while television remains the 800-pound gorilla of the industry, the audiences advertisers are trying to reach are increasingly turning their attention elsewhere. Keep reading…we’ll tell you where smart ad money is headed.