• by Joe Mandese  @mp_joemandese, June 8, 2004

Madison Avenue's perceived demand for advertising inventory improved on the eve of 2004-05 upfront network TV ad negotiations, but it declined slightly for the major broadcast networks, according to media planners and buyers surveyed in late May by InsightExpress for MediaDailyNews. As has become evident by the outcome of this year's negotiations, demand for cable TV ad inventory improved slightly, and continues to index as the second highest-demand medium after online.

Relative demand for consumer magazines also continued to falter, approaching network TV as the weakest medium in terms of demand vs. year ago levels.

Due primarily to improving demand for online and cable, the overall demand index improved slightly from recent months, with 54 percent of respondents now saying their plans to buy advertising inventory have improved relative to a year ago. The data reflect the responses of 207 media planners and buyers surveyed online at the end of May.

The data mirror the pattern being played out in the network upfront marketplace, where there has been a decided share shift away from broadcast network and toward cable network TV. With broadcast negotiations expected to wrap up in principle this week, it now appears that the broadcast network prime-time marketplace will either be even with or down slightly from last year's $9.3 billion upfront take.

At press time, it looked as if at least three networks - Fox, NBC and the WB - had virtually wrapped up their 2004-05 negotiations, with ABC, CBS and UPN playing clean up. While total volume may be flat or down slightly from last year, the broadcast networks did manage to get high single-digit CPM increases, with CBS holding out for double-digit gains.

How Ad Demand Has Changed Relative To The Same Point A Year Ago

Increased Stayed The Same Decreased
Online 66% 31% 3%
Cable 53% 38% 9%
Radio 38% 46% 16%
Outdoor 34% 51% 15%
Newspapers 25% 49% 26%
Magazines 23% 56% 21%
Network TV 20% 57% 23%
All Media 54% 41% 5%
Source: Source: May 2004 MediaPost survey of media planners and buyers conducted online by InsightExpress. Base = 207 respondents.