January 25, 2023
TV Nets Make More Early-Season Scatter Deals
- by Wayne Friedman , October 28, 2014
A majority of media agencies’ national TV media buys confirm earlier estimates of a weaker upfront market set in June — which resulted in TV networks holding back prime-time
inventory to sell in the quarter-by-quarter “scatter” markets to hopefully garner a higher price. Of the prime-time TV media dollars spent in September on the four major broadcast networks, 79% came from upfront deal-making, and 21% from scatter or other media buy activities. This compares with September 2013, when upfront buys contributed to 86% of that month’s network TV media dollars and 14% from scatter deals.
These results come from Standard Media Index, a company that compiles actual TV and media-buying data from media agencies representing 75% of the market.
TV advertisers make season-long “upfront” deals with networks to secure favorable pricing and placement. Less money from deals occur in the scatter markets.
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ABC placed the least amount of upfront dollars in September, according to SMI — 74% of its total national ad total; with 26% coming from scatter buys. Fox placed the most from upfront deals in September — 86% of all its network ad dollars for that month, with 14% coming from scatter buys.
NBC placed 81% of its September money from upfront buys, with 19% from scatter. CBS was at 77% of upfront money, with 23% from scatter.
A year ago, Fox and ABC placed the highest levels of upfront dollars in September, each with 89% and 11% coming from scatter.
Concerning cable networks, the change was somewhat smaller. This September cable networks pulled in an average 72% of their TV advertising dollars from upfront deals, 28% from scatter deals. In September 2013, cable networks got 76% from upfront deals and 24% from scatter.
One note: Upfront spending for many TV marketers typically starts when the broadcast TV season begins in mid-September. Other TV upfront advertising deals can begin earlier, and some later.
For the 2014-2015 TV season upfront revenue projections estimate that broadcast networks took in 5% less revenue to $8.25 billion from $9.15 billion a year ago.
Broadcast networks posted a modest price rise for the upfront — the cost per thousand viewers (CPM) — a 5.2% hike versus a year ago. This was lower than the average 7% CPM gains made a year ago during the 2013 upfront for the 2013-2014 TV season.
