What happens when you take two of the top ten advertiser’s in the U.S. and merge them together?  According to the Wall Street Journal, it will mean less money spent on advertising for a combined entity.

Last year AT&T, at $1.84 billion, ranked second in U.S. paid media. Time Warner at $1.07 billion was ranked number 9.  On a combined basis, the total media spending would have potentially passed Proctor & Gamble as number one in the U.S.

Both companies have spent less than 2015 from January through June of this year.  The assumption is that if the merger is approved we can expect ad budgets to shrink even more.

Insider’s take – A combined entity will need to find ways to boost confidence with current and potential stock holders. Operating efficiencies (cost cutting) is always a priority.  Expect AT&T-Time Warner to focus on savings in all areas, including their advertising priorities. 

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