Advertising Industry Longs for Changes to Upfronts/NewFronts – Part 1

By Jeff Minsky

The annual migration to New York for the NewFronts and Upfronts does make a positive impact, according to The Myers Report 2019 Upfronts/NewFronts Study. A full 75 percent of respondents agree that both the Upfronts and NewFronts provide important business solutions. Even so, about 70 percent think that the related media buying process is outdated — and a significant number of respondents confirmed that fewer clients made the trek to the events this year.

The Myers Report surveyed over 150 Media Agency executives in planning/strategy, investment, and Sr. management to explore the value and benefits they derive from both the lavish media presentations and the actual negotiation process itself.

Based on our research, the NewFronts need to evolve from their current format. One issue is inconsistency; which media companies host NewFronts vary year to year. Another is that the scale of the show and expenditures that larger players such as YouTube and Hulu can muster allows them to overshadow smaller players. In fact, our research shows that senior-level agency executives were far more likely to attend NewFronts hosted by the largest players and more traditional content producers: Hulu (82 percent), Google/YouTube (55 percent), Meredith (23 percent), and Viacom (23 percent).

The biggest issue facing the NewFronts, however, is the increasing focus on digital and data within the traditional Upfront presentations. That shift virtually eliminates the raison d'etre for a separate NewFronts in its current format. Only about one-third of respondents (35 percent) said that the New York NewFronts made a direct impact on their decision to increase digital investment overall; nearly 64 percent said it did not.

Indeed, 2019 was a year of retrenching for the NewFronts. Although there was no significant change in the total number of NewFronts (13 publishers in 2018 versus 14 in 2019), there was a shift in the players. This year marked the entry of five new participants: Target, Walmart's Vudu, LA-based content producer Studio71, Viacom, and Ellen Digital Network. While not part of the official NewFront lineup, our study also measured Comcast's Freewheel NowFront and Xandr's presentation. The participating 2018 media companies that opted not to host events in 2019 were Disney Digital Network, ESPN, Fusion Media Group, Group Nine Media, Jukin Media, and Refinery 29.

Our research confirms that Hulu and YouTube dominate the list of 18 NewFronts in all measured categories including:

- Favorite presentation

- Clearly articulated the company's strategic vision

- Data/analytics capabilities

- Advance targeting capabilities

- Most appropriate presentation length

- Value of the content

- Best talent/appearances/entertainment

- Innovation

- Networking with executive leadership and talent

(MyersBizNet members can scroll down to read more or access The Myers Report online.)

It's not surprising that Hulu and YouTube also were the best attended given the share of digital spend they earn. Not only was Hulu one of the best attended NewFronts, with 86.8 percent of respondents saying that they attended/viewed, but it was also one of the most appreciated — with 63.7 percent saying it was their favorite.

We asked respondents to identify those drivers that made them choose a particular NewFront as their favorite. Content and innovation were strong drivers, along with getting a strong sense of the company's purpose and vision over the coming year.

Our research did illuminate some differences between media buyers (investment) and media director/group account directors in how they perceive Hulu and YouTube. Buyers were more inclined to believe that Hulu most clearly articulated its strategic vision (nearly 65 percent versus 59 percent of media directors); media directors had stronger feelings around YouTube (nearly 30 percent versus about 23 percent for buyers).

Hulu didn't get all the love. Buyers were also impressed with Xandr's data and analytics story, with 32.3 percent of buyers selecting Xandr for clearest communication around its data and analytics capabilities, ranking third after Hulu and YouTube in our study.

Hulu hosted its NewFront at the Hulu Theater in Madison Square Garden, replete with A-List talent that included George Clooney, Mindy Kaling, Margot Robbie, and Reese Witherspoon. This made a big impact, as reflected in our study: Hulu was, by far, the top-rated NewFront when it came to 'Best talent appearances/performances/entertainment,' cited by 61.5 percent of respondents. Despite being a full 90 minutes, the show was an ideal blend of information and entertainment; as a result, about 52 percent of respondents said that it was the most appropriate presentation length, making it tops in our survey.

One of the key objectives of any NewFront is to convince buyers that there is true value in the content that a network is producing. Viacom and Meredith topped the next tier below Hulu and YouTube when it came getting this point across. Xandr and Twitter also excelled in clearly articulating their company's overall strategic vision.

As we look ahead to 2020, we need to examine the shifts that could lead to the Upfronts and NewFronts coming together. Along with the dissatisfaction respondents expressed with the current format, there's the potential of an economic downturn in 2020, which could put travel constraints on many attendees. But, shift most likely to make an impact is the increasing similarities in stories around data and digital content in both the NewFronts and the Upfronts. There is a case for blending the two events into one.

The downside? It could further inhibit the impact that small and midsize players have during the period. One option: Make the events bicoastal. Recently, the IAB held the Newfronts West in Los Angeles. The mid-year marketplace attracted more than 500 brands, content creators, and agencies. This gathering, away from the shadow of the Upfronts, could be a more appropriate venue for those smaller players.

The coming year will bring unprecedented development of both long and short form digital video entertainment across both traditional media players and new SVOD entities. It will be important for marketers and buyers to be exposed to and understand both the new content being developed, the innovation surrounding the content, and the various ways that marketers can be involved. It's time to focus the innovation not just on the content, but on the NewFront presentations themselves. Alternatively, it may be time to wind down and blend the two events as the line between traditional and new media are within hair's breadth of each other, and in the process make it more efficient for buyers and marketers.

To learn more about our Upfront/NewFront study, please reach out to your MyersBizNet representative.

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