The Future of TV Advertising: Insights from Jon Steinlauf, Chief U.S. Advertising Sales Officer at Warner Bros. Discovery
In a recent episode of The Speed of Culture podcast, hosted by Suzy's CEO Matt Britton, Jon Steinlauf, Chief U.S. Advertising Sales Officer at Warner Bros. Discovery, delves into the evolving landscape of TV advertising. Jon shares his insights on the current trends, challenges, and future directions of the industry. With a career spanning decades and extensive experience in ad sales, Jon provides a unique perspective on how brands can navigate and thrive in the rapidly changing media environment. This blog post captures the key takeaways from their conversation.
Embracing Change in a Dynamic Industry
Jon Steinlauf's career began in the mid-1980s as Director of Ad Sales at ESPN. Since then, he has witnessed and adapted to numerous technological and market shifts. From the rise of cable TV to the current dominance of streaming services, Jon's ability to stay ahead of industry trends has been instrumental in his long-standing success.
"I think what made this a very long career for me is I like all the changes," Jon explains. "You get a competitive advantage if you are ahead of it."
The Enduring Importance of Relationships
Despite the technological advancements, one aspect of Jon's job has remained constant: the importance of relationships. Networking and maintaining trust with clients and partners are crucial in the ad sales industry.
"It's a relationships business," Jon emphasizes. "You don't get to stay in power in this industry for the long term if you don't have the trust of the people in the marketplace."
The Evolution of TV Advertising
The TV advertising landscape has become increasingly complex with the proliferation of streaming services, devices, and platforms. Advertisers now prioritize targeting and addressability to eliminate waste and reach their desired audience more effectively.
"To me, the biggest change in the last five years has been the importance of targeting, addressability, and being able to eliminate waste," Jon notes. "Streaming allows for more of a waste-free approach."
The Role of Sports in Linear TV
Jon believes that sports will continue to be the "glue" that holds the linear TV bundle together. Major sports events like the NFL, NBA, college football playoffs, and the Olympics ensure that there will always be a demand for traditional broadcast and cable TV.
"I think the big glue to the linear bundle is going to be sports," Jon asserts. "The sports fan will always want to have the bundle."
The Shift to Streaming and AVOD
Streaming has significantly disrupted the traditional TV model, with services like Netflix and Hulu leading the charge. Jon highlights the growing trend of ad-supported video on demand (AVOD) as a critical area for the industry.
"Streaming has been disruptive, maybe more so than anything in my career," Jon says. "AVOD is becoming the trend. I think this is one of the stories of this year – who's going to do well with AVOD?"
Innovative Advertising Strategies
Warner Bros. Discovery is leveraging its extensive portfolio to create unique advertising opportunities. Jon shares an example of how they integrated GMC's Sierra truck with the HBO series "True Detective: Night Country," creating custom content that seamlessly blends with the show.
"We created custom content with this truck," Jon explains. "There's billboards and bumpers that say, 'This episode of True Detective: Night Country is brought to you without commercial interruptions by GMC Sierra.'"
The Future of Linear TV
While the rise of streaming poses challenges for linear TV, Jon remains optimistic about its future, particularly due to the enduring appeal of sports and live events. He envisions a stable cohort of affluent viewers and sports enthusiasts maintaining their cable subscriptions.
"I think the big glue to the linear bundle is going to be sports," Jon reiterates. "The true sports fan or the true sports family is going to need to be in the bundle for the long term."
Insights for Future Leaders
Jon's success is rooted in his adaptability, deep industry knowledge, and strong relationships. He advises future leaders to focus on listening more than talking and to be genuine in their interactions.
"Listening more than you talk is probably an interesting way to think about sales," Jon suggests. "Being unflappable as a leader, having the trust of your team and clients – those things really matter."
Conclusion
Jon Steinlauf's insights provide a comprehensive look into the future of TV advertising. As the industry continues to evolve, embracing change, leveraging relationships, and focusing on targeted, innovative advertising strategies will be key to success. With a robust portfolio and a commitment to adapting to new trends, Warner Bros. Discovery is well-positioned to navigate the challenges and opportunities in the rapidly changing media landscape.
