• Ad Age, Tuesday, June 27, 2006 11:15 AM

This could be the year when the digital revolution finally takes a bite out of the network upfront, reports Ad Age, as "TV's take could be down as much as $600 million." While deals are still being negotiated, agency executives and industry watchers see the market ending up anywhere between $8.5 billion and $9 billion--down from $9.1 billion the last go-round. One big reason is the explosion of digital options, which has given marketers more to bargain with: "The power has shifted back," one big advertiser tells the trade magazine. "It's cyclical ... because of all the pressures in the marketplace, it is amazing [networks] did as well as they did." Another factor weighing on this year's upfront is a willingness by some marketers to take their chances in scatter, a la Johnson & Johnson, which sat out the upfront entirely. "And network arguments over payments for additional viewers watching shows in playback also marshaled agencies' resolve to play hardball this year," Ad Age notes.

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