Big advertisers such as GM and PepsiCo are "seeking to walk back spending commitments they made to broadcast and cable networks, a dynamic that is testing the industry’s five-decade-old way of doing business," according to Suzanne Vranica of the WALL STREET JOURNAL. TV ad spending "fell in the initial weeks of the coronavirus pandemic, but was insulated from an even bigger drop." The "first real opportunity since the pandemic struck for advertisers to cut back future spending commitments began May 1," as companies now have the "option to cancel up to 50% of their third-quarter ad spending." Sources indicated that many companies are "seeking to take advantage of that option to varying degrees," including GM, PepsiCo, Cracker Barrel, General Mills, Domino’s Pizza and pharmaceutical giant Sanofi. Ad buyers estimate that roughly $1-1.5B in commitments for Q3 "could be canceled." Some ad execs expect that the pandemic will "accelerate the shift of TV ad dollars to other marketing channels including streaming-video services and tech giants." A General Mills spokesperson said that the company is "shifting some TV advertising dollars into digital video and e-commerce, areas where it is seeing people spend an increasing amount" (WALL STREET JOURNAL, 5/13).
