Business Insider cited three unnamed sources at the company as saying that it paused its TV advertising. That follows a report by Variety saying that Microsoft will sit out TV upfronts, the opportunity to buy network inventory in advance. When reached for comment, Microsoft said in an emailed statement to Barron’s that it had “nothing additional to share here.”
One person with direct knowledge said the company made the advertising cuts in the face of rising interest rates and supply chain challenges to avoid layoffs, according to the Business Insider report. The company allegedly told media buyers and TV networks that it would not participate in the TV upfronts, which is a period of time where television networks and advertisers negotiate marketing and ad deals, according to Variety. Microsoft spent an estimated $294.8 million on TV advertising in 2021. Other global advertisements for Microsoft companies like Xbox will still be handled by marketing company IPG ’s McCann Worldgroup, according to sources cited by Business Insider.
Microsoft is one of the latest tech giants to slow down hiring in 2022 due to economic uncertainty. The hiring slow down will specifically affect the Windows, Office, and Teams chat and conferencing software groups, according to a Bloomberg report. The company also reduced its financial forecasts for the June quarter earlier this month.
https://www.barrons.com/articles/microsoft-tv-advertising-cut-costs-51654872242
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