Driving The Upfront: Selling Begins For Movie, Auto Companies
Movie and auto companies sprang into upfront action for the 2012-2013 season at two networks: Fox and ABC. Price hikes were expected in the mid- to high-single-digit percentage gains for program deals. But little other activity has started -- as of Thursday mid-day.
Movie and automobiles typically start up the upfront process -- categories that pay slightly higher than marketplace prices to secure specific inventory and flexibility on the networks.
Other advertisers are still on the sidelines. One media agency executive says the networks were not necessarily pushing for specific budgets yet for other ad categories. “Nothing much is moving. No one has pressured us for budgets. Other than that, things are quiet.”
Fox and ABC similarly moved first during last year’s upfront. Another media agency executive said NFL negotiations for inventory are also active.
Media-buying executives believe all this is somewhat of a good sign for marketers. If movie companies and autos are paying around mid-single to high-single-digit price increases, it would mean -– in theory -- smaller hikes for other consumer product advertisers. “It’s all good,” said another media agency executive.
CPM price gains of 4% to 8% would be much lower than the 12% to 15% and more price hikes levied on advertisers a year ago.
Recently, CBS has said if it doesn’t get “premium pricing,” it would hold back inventory and look to sell it in the scatter market. Les Moonves, president and CEO of CBS, had said the network deserves to ink 10% or more price gains for next season’s upfront inventory.
Industry estimates are that the five English-language broadcast networks could see around 2% to 3% more overall money during the upfront process this year, totaling around $9.5 billion. Networks usually sell around 75% of their seasonal inventory to major TV advertisers during the upfront selling period.
A Fox spokeswoman declined comment; an ABC representative did not respond to inquiries by press time.
Recent MediaDailyNews Articles
-
Out-Of-Home Trading Platform Integrates With Mediaocean, Posterscope Backs Move May 21, 8:07 a.m.
While it’s not quite the out-of-home equivalent of the online industry’s real-time trading systems, outdoor media ... -
Networks Top Goal: Ad Dollars Trump Studio-Produced Shows May 21, 8:06 a.m.
With Netflix and Amazon writing hefty checks, it bears watching whether networks will increasingly pick up ... -
Budweiser Bows New Campaign, Topped With Responsible-Drinking Blimp May 20, 5:26 p.m.
Summer is a time of concerts and festivals and beach-going, all of which carry the attendant ... -
Clear Channel Outdoor Unveils Consumer Networks May 20, 5:23 p.m.
Clear Channel Outdoor is creating a new way for advertisers to buy out-of-home ad inventory with ... -
Digital TV Video Biz Is Booming May 20, 4:10 p.m.
As traditional TV platforms project small gains in their $70 billion business, new digital TV video ... -
Initiative Wins Amazon's Global Media Account May 20, 3:09 p.m.
Interpublic Group’s Initiative has won global media duties for e-Commerce giant Amazon.com after a review.The company’s ... -
Media Storm Inks Ad Buying Deal With Videology May 20, 1:55 p.m.
Media Storm, which specializes in representing entertainment entities, such as FX and Food Network, has signed ... -
Mars Contract Suit Against Y&R Continues May 20, 11:56 a.m.
A New York judge has denied a request by WPP’s Y&R to toss out a breach ... -
Sony Debuts Marketing Campaign For 4K TV Sets May 20, 11:50 a.m.
While U.S. TV programming networks are not close to transitioning to the new 4K TV technology, ... -
Dish TV Expands On-Demand May 20, 11:19 a.m.
Dish Network, which has allowed subscribers to watch live TV on mobile devices for some time, ...
Be the first to comment on "Driving The Upfront: Selling Begins For Movie, Auto Companies"
Leave a Comment