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Entertainment titans talk the future of TV ads at CES

Matt Kapko | Jan. 11, 2016
The worlds of marketing and entertainment are more complicated than they were a just decade ago and there’s no indication that things will get less challenging, but executives from leading TV networks who spoke at CES 2016 say the medium has a bright future.

Technologies that originally scared the networks, such as digital video recorders (DVRs) came from consumer desire, he said. After his company got over the initial shock of DVR time-shifting and ad-skipping, it decided to embrace the change as a starting point for new opportunities, according to Rice.

John Stankey, CEO of entertainment and Internet services at AT&T, which acquired satellite TV provider DirecTV last summer, agrees that networks need to adapt to instead of resist the industry's transition. "If three years from now we're still sitting in a position where we're referring to television as selling a bundle into a household or living room, we're missing that strategic intent," Stankey said.

How mobile changed entertainment advertising

JPMorgan Chase still spends the greatest percentage of its ad budget on TV, but the mix shifted from about 60 percent at its ceiling to less than 50 percent today, according to Kristin Lemkau, the company's CMO.

The bank also faces other digital challenges. For example, despite the 22 million customers who now use Chase's mobile app, which is 21 percent more people than used it last year, Lemkau admits Chase is too focused on desktop and print.

Alison Lewis, global CMO at consumer packaged goods company Johnson & Johnson, said mobile quickly became an important component of the company's marketing strategy. Half of all online traffic to Johnson & Johnson brand website comes from mobile devices, she said, and mobile also dominates search. 

The sheer scale of content required for Johnson & Johnson to market brands like Neutrogena, Band-Aid, Listerine or Tylenol on mobile and digital outlets is growing exponentially, Lewis said. "We need a whole content ecosystem and it's a massive, massive shift for our business."

 

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