Here's Why the Upfront is Upside-Down
As the Upfront season winds to a close, press reports are heralding advertisers' return to network television, spurring both volume and cost-per-thousand increases. However, there are behind-the-scenes realities that tell a more complex story. When the press reports broadcast network Upfront increases, as the Wall St. Journal did last week based on data provided by Media Dynamics Inc., none of the realities I outline below are factored into the analysis. Yes, this year's Upfront picture appears to be more robust than the past few years. But in my opinion, the data as reported is highly unreliable. Trying to get an accurate apples-to-apples read on stand-alone broadcast network television advertising economics fails to reflect today's buying and selling dynamics.
The important news is that network television advertising is stable, and the largest networks are holding their own in a hotly competitive marketplace. But it's unlikely that total Upfront market revenues will prove to be as strong as reported. In my analysis below, I share some market realities and shifts that result in this disparity.
A recent report by SMI's James Fennessy in TomorrowToday based on their study of 100 top advertisers, established that the advertisers returning to network TV and increasing their spend are primarily in the auto, financial, tech, telecom and travel categories. Advertisers that continue to spend less in TV are heavily weighted to consumer packaged goods, pharma, fashion, quick service restaurants, retail and consumer electronics...
Read the full article on MediaVillage.com.
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