One of World's Largest Advertisers Pulls One-Fifth Marketing Budget Away from Television

futurelab default header

by: Josh Hawkins

The Independent reports Unilever will pull one-fifth of its television advertising budget, providing yet another indicator that the traditional television advertising model is in trouble.

Alan Rutherford, the vice-president of global media at Unilever, one of the  world's largest advertisers, said the value of television advertising was  dropping in the face of audience fragmentation and the proliferation of new  channels. He told the conference that advertisers have to spend 10 per cent more in the US to achieve the same "weight" of impact available five years ago. "Advertisers cannot continue to fund that [traditional] type of television," he said, pointing to new platforms available to advertisers and their ability to create their own content. "The advertiser-dependent model can not survive. Those broadcasters who cannot resolve this will die."

Given the tight regulations restricting product placement in European television programming, expect to see an aggressive campaign focusing on branded entertainment, interactive media, and CGM in US markets.

Original Post: