The Future of TV Advertising

Tracks trends in traditional television ad sales and the impact of new technologies, new competition.

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Proven senior level executive with over 25 years of leading turnarounds and startups of software companies in media, finance, energy and business intelligence. See more at Linked In.

Monday, June 25, 2007

Upfront is "Up"

Hard to believe, but the networks pulled out, according to AdAge, an increase in upfront commitments. The take increased 2.7% over last year.

This happened despite the new ratings indicating an audience decline of 5%-10%. As I mentioned previously, the networks' response of raising rates actually worked!

The argument the networks used was "Hey, you can't get to mass audiences any better". They invoked what I call "the reach premium". The argument is that if you want to cover a large percentage of the US audience with your campaign, you need to buy those with the largest reach to efficiently ensure they get the message. Since there are only so many networks with big reach, they can ask for a premium.

Will local television be able to hold the line on revenues with local advertisers? We'll see.

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