• by Wayne Friedman , June 4, 2009

On the verge of TV's upfront market, CBS has agreed with other networks that there is a definite improvement in the advertising market.

Speaking at the Merrill Lynch Global Telecommunications, Media, Technology Conference in London on Thursday, Fred Reynolds -- executive vice president and CFO for CBS -- said there are clear signs that the economy is improving. Bolstering this, according to Reynolds, is that the "scatter market is up single digits over upfront 2008 [prices]."

Still, the current upfront advertising market is slow-moving -- with TV advertisers still determining TV budgets.

Reynolds estimates that upfront deals will get done next month -- around July 4 or mid-July. "We will probably be the leader," he says, in regard to CBS' uptick in ratings this past season versus other networks' viewership declines.

All TV stations have been dramatically hurt this past year with lower advertising sales, mostly due to the decrease in automotive ads. But CBS has been hurt somewhat less. Reynolds says CBS stations have avoided many of the problems of General Motors and Chrysler because foreign car manufacturers make up 80% of CBS' total local automotive category. Toyota and its dealers are its biggest car brand.

As a result, stronger profitability will return to its local TV outlets.

"I'm very confident that our local [business] margins will be up," he said. CBS, as well as other station groups, have cut costs dramatically, including restructuring or eliminating many producing/on-air talent contracts.

Last week at an U.S. industry conference in Carlsbad, Calif., Jeff Zucker, president and CEO for NBC Universal, said: "This upfront will be stronger than people expect."