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ABC Taking Upfront Gamble

  • Ad Age, Monday, June 12, 2006 11 AM
Media buyers are holding out for price rollbacks from broadcasters, Ad Age reports, pushing for lower cost-per-thousand rates in exchange for big upfront commitments. But not all the networks are willing to play ball. While NBC and CBS have written a few deals at rates lower than last year's, according to unnamed agency sources, ABC is still holding out for increases--and there are reports that Fox is even getting them. By insisting on higher rates, ABC is gambling that dollars won't move elsewhere. It is also possible that ABC has "seen the amount of money that's been registered and may believe there's more money in the marketplace than expected." But that could be a big risk, as more companies say they will put fewer dollars into the upfront market this year--a trend illustrated by Procter & Gamble Co., which will reduce its spending by 10 percent.

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