MediaDailyNews
- by Wayne Friedman, 10 hours ago
Television's upfront market will take a turn backwards this season.A new estimate says that with most of the deal-making completed, total television upfront prime-time advertising revenue for broadcast and cable networks will sink 6% to $18.1 billion from the $19.3 billion tally in 2013, per Media Dynamics.
Broadcast upfront revenues are estimated to drop 7.7% to $8.45 billion from the $9.15 billion level in 2013. Cable TV upfront revenues look to retreat 4.7% to $9.68 billion from $10.16 billion.
While broadcast networks have seen steady declines for the last two upfront selling periods, this season will be the first decline for cable since it dropped to $6.92 billion in the 2009 upfront period (for the 2009-2010 season) from its $7.6 billion level in 2008 (the 2008-2009 period).
In 2009, the TV ad revenue declines were part of the overall U.S. economic collapse that hit all businesses during the Great Recession in 2009. In the midst of the recessionary period in 2009, total TV upfront revenues were down sharply -- off 14% -- with the cost per thousand viewers down 4%.
Some of that upfront market was also affected to a major degree by TV networks withholding much more inventory that year for sale in the following scatter markets -- in the hopes the economy would improve.
Dr Philip Jay LeNoble, of Executive Decision Systems, Inc. indicates local-direct revenue can be a boon from those stations frozen out of political due to their market size. For those markets who will reap the benefits of a large political season come fall. it will be important not to pre-empt local clients who are depending on the holiday season to make their year as they will be more difficult to to regain. While some managers say their local clients understand...they are being fooled as local direct clients may find other new media more attractive which as a result may further impact core revenue for the year and the beginning of 2015.
No comments:
Post a Comment