ABC Completes Upfront With Strong Results

ABC has joined the ranks of CBS, Viacom, CW, Turner, and a few others in completing upfront deal-making with solid results for the 2016-2017 TV season.

ABC scored near double-digit percentage price increases in the cost per thousand viewers (CPMs), according to media-buying and selling executives. Some other networks have seen slightly higher increases in the 10% to 12% range, with others in the 7% to 9% range.

ABC also experienced slightly higher overall upfront dollar volume. Many networks, according to media executives, have garnered 3% to 5% volume gains, with some individual networks -- such as the CW -- grabbing as much as a 10% hike.

Sources said ABC's digital premium TV offerings posted decent business as well. As with other networks, ABC transitioned many TV marketers to C7 guaranteed deals from C3 deals -- the Nielsen average commercial minute rating plus seven days (or three days) or time shifted viewing. 

An ABC spokesperson had no comment regarding the network's upfront ad market.

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Some major TV network groups -- 21st Century Fox and NBCUniversal -- are still nearing the finish line in completing upfront deals. Both Fox and NBCU each have more than a dozen cable networks in addition to their respective broadcast networks. Increasingly, TV media companies are trying to sell advertisers many networks in big packaged deals.

Fox's deal-making for the broadcast network has been in the 8.5% to 10% CPM increase range, with NBC at a higher 11% to 13% level. Fox’ smaller declines are due to its existing high average prime-time CPMs. This was built from its industry-leading program ratings of a few seasons ago, which boost its prime-time pricing to the highest of all broadcast networks.

Steve Burke, CEO of NBCUniversal, said recently: “What we found was that, on a CPM basis, NBC was getting 20% less than Fox or CBS.” For 2015-2016 TV season, media consulting company Media Dynamics said broadcast TV networks averaged prime-time CPMs of $24.40 for viewers 18 years and older.

The summer upfront advertising sales period is where TV advertisers commit/buy 75% of their TV advertising budgets for the upcoming season.

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