For a mass media conglomerate like Time Warner (NASDAQ:$TWX), advertising is a fundamental resource of generating revenue.

In fact, AT&T (NASDAQ:$T) is looking to acquire Time Warner by the end of this year. The telecommunications company hopes to leverage its viewership data with Time Warner’s content to offer advertisers the most optimal advertising packages.

The Numbers

• Time Warner expects to earn around 50% of its advertising revenues from targeted advertising by 2020
• The programmatic ad market itself is expected to be worth $27 billion in 2017

21st Century Fox and Comcast

Similarly, advertising is just as important for 21st Century Fox (NASDAQ:$FOXA). In fiscal 3Q17, advertising generated 29% of the company’s total revenues, a cool $7.6 billion. In its first month, the company saw advertising growth in the high single digits in both its domestic and international cable networks.

On the other hand, Comcast’s (NASDAQ:$CMCSA) NBCUniversal contract generated $6.5 billion in advertising commitments for the upcoming season, surpassing last year’s figure by 8%.

Affiliate Fees

Affiliate fees are another major source of revenues for Time Warner. The company expects their Turner business to maintain, if not surpass its subscription revenue growth in 2H17 compared to that of the first half of the year. The prediction stems from optimism that its Turner network brands outdo its competitors, such as The Walt Disney Company’s (NASDAQ:$DIS) ESPN in value.

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