TV ad industry: ‘We’re not making enough money’

TV ad companies are not making money. 

Their revenue is stagnant, and they’re not hiring enough staff, the industry’s chief executive says. 

That is the verdict of Mark Thompson, president and chief executive of the National Association of Broadcasters, who has reached an agreement with the American Association of Television and Radio Broadcasters to end an agreement that has kept TV advertising firms in the US and Canada for years. 

This was the original agreement between the US and Canada, which expired on January 20, 2021. 

Thompson told CNNMoney on Wednesday that the NAB had reached an agreement with the broadcasters, which is to end the “three-year old” agreement, which was under which the US and Canadian broadcasters were allowed to make independent broadcast and advertising advertisements, without the involvement of the cable networks. 

But Thompson says the current agreement is not revenue-neutral. 

“The reality is we’re not getting a return on our investment in our investment, and we’re certainly not making enough money,” Thompson said. 

The NAFTA agreement expired in January 2020, and the American Association of Television and Radios was not happy with the terms. 

As part of the agreement between the two sides, the FCC is pushing to get the American and Canadian broadcasters to stop making ad campaigns and pay TV companies directly for the advertiser’s advertising services. 

It is expected that the American and the Canadian broadcasters will reach an agreement by the end of the year. 

 “We are hopeful that we will be able to reach an accord on this issue by the end of January,” Thomas said.

“I believe that we are getting close, but we have to get this deal done. 

And at the end, there will be an agreed on deal and we will be able to bring in a back to business model for the networks. The NABS has already made some agreements with the broadcasters in the past, but this agenda is different. 

In some agendas we agree, others we negotiate and there’s not a lot of negotiation going on,”  Thompson said.”

I don’t think the American and Canadian ad executives are ready to give up the reputation of their advertising and advertising networks for advertising. 

I think they’re ready to take on the agencies that are the advertising companies.” 

Thompson said that the agreement would enable the NABS to continue paying advertising companies for their advertising services, and to pay TV advisors for the advertising of programs. 

However, he said it was not clear if that would mean TV networks would be required to pay advertising firms direct to run program shows. 

At this point there are no agricultural agents that represent advertising agencies in advertising, Thompson added. 

He said that a number of advertising executives are ready to sign on to the agreement. 

There is a very good will between TV advertising &advertisers and Advertisers &advertisment companys and…they are ready to sign on to the deal,  he said.

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