Viacom-CBS Merger could boost advertising ambitions

13

The merger of

CBS
Corp.

and

Viacom
Inc.

it creates a larger and better media company to advance high-tech advertising and video streaming ad-supported.

The merger logic, which would create a $ 30 billion company, is that Viacom and the CBS will have a greater scope to engage with all areas of their business – more leverage in negotiations on transport fares with distributors t cable and satellite TV, for example, and more programs for sale in a competitive streaming market. Advertising is not different; there are many advantages to more players.

Acting Chief Executive SPC

Joe Ianniello

this week highlighted the broad reach of companies among consumers. “And when you combine this relationship with our targeted capabilities, our high-level advertising opportunity will be much more than we would from one company,” he said.

For SPCs who have been successful in selling their sports and entertainment programs but were less aggressive in developing new ad capabilities, the deal could mean data infusion and high-tech capability from Viacom, according to advertising executive . Viacom, a technology platform that helps advertisers find out which TV channels reach their target groups. When Viacom reported last week that he returned to home growth after 20 quarters of the reductions, he promoted some of the advertising services.

Advertisers are, at the same time, increasingly pressing on television networks to help them find programs that reach a more specific audience, such as car buyers or beer drinkers, rather than traditional but broad demographics as women aged between 18 and 49. years of age. They are also looking for ways to control how often the same viewer sees ad.

Vantage helped a huge ad clients

Dentsu
Inc.

achieved a more specific audience over the past five years, said

Mike Law,

recruitment group president Dentsu, Amplifi. There is an opportunity for the newly merged company called ViacomCBS – to expand this type of technology across all its assets, he said, adding that SPC also has some of its own high-level products. “As we move to the permissible face-to-face world, these large-sized companies can help us reach this audience more widely,” said Mr Law.

“Viacom is definitely ahead, but necessary,” he said

David Campanelli,

co-investment officer at Horizon Media, a buy-in firm. “It is harder to reach younger viewers in television, so [Viacom] wanted to make progress in the data space to be smarter about how they reach audiences for advertisers. ”

Viacom needs data products to help advertisers optimize their spending over their many networks. “SPC has stable audiences and ratings but has not had an asset portfolio to make the most of them. Behind the scenes [CBS] are taking part in the space or staying up in space but [not needed] to put out a product there, ”he said.

The streaming video streaming ad-supported could be reinforced in a landscape where options are free from atom

Netflix

and HBO great loom. CBS was one of the first television businesses to launch a streaming service, called All Access CBS, in 2014, and this year Viacom received a Pluto TV streaming service.

Buyers said that they expect ViacomCBS, through its content libraries and individual investments in streaming services, to create a viable and unfriendly competitor.

A more robust streaming service could produce a strong additional commercial inventory in a TV market with limited supply, an ad buyer said by a large holding company.

“You can't send niche services, narrow streaming and try to compete with Netflix,” said Mr Campanelli. “You need a wide range of assets and materials to have a streaming service that can compete. The Irish Language Strategy

Disney

and Warner Media and now what will emerge will help them compete in that space, which is good for advertisers. ”

Viacom and CBS refused to comment.

Advertisers are expected to spend $ 67.23 billion on US TV advertisements in 2019, a decrease of 1.4% from 2018, according to estimates from media buyer Zenith.

But many television companies still have higher ad rates each year. Viacom stated that it has ratified percentage price increases in the individual single high numbers to double digits during the industry's latest annual period, when television networks sell most of their inventory for the coming season. Viacom described it as “the highest change in over a decade,” partly driven by commitments across its digital and high-level advertising portfolio.

CBS also said that it had received price increases in its initial talks.

Their combination could help to order higher ad prices.

In conjunction with recent combinations for example

Disney

-Fox,

AT & T

– Warning Dogs and Discovery-Scripps, leveraged leverage by ViacomCBS and negotiation with giants would buy Madison Avenue.

And through younger Viacom networks leaked like MTV together with CBS broadcasting network, which draws an older audience, ViacomCBS could offer a wider range of viewers to advertisers.

Comcast
Corp.

NBCU and Disney have already done, ad buyers said.

“This puts them in the game,” said Amplifi's.

Write Alexandra Bruell at alexandra.bruell@wsj.com

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