• by May 3, 2004

By Bob Liodice

I appreciate the perspective MediaPost's Real Media Riffs had to share Friday about last Thursday's meeting of the Network Upfront Discussion Group (NUDG). Having been one of the principal organizers of NUDG, I am keenly interested in the diverse opinions about the Upfront process.

I was surprised by MediaPost's characterization that the talks "failed." Did the marketplace truly expect that this meeting was going to bring wholesale changes to the Upfront process? If so, then your expectations were, quite frankly, unreasonable.

The purpose of the meeting was to talk and share ideas about the alternative approaches to the "closing bell" and alternative timing of the Upfront negotiations -- no more / no less. Put into a historical context, this is a major step forward. The industry, in recent years, has not collaborated to discuss anything. So to bring the industry together to have a rational discussion was a significant -- and a historical step. And we did take a stab at evaluating alternatives. The facilitated environment permitted everyone who had something to say -- to say their peace. I believe that took place. I, for one, learned a few things along the way that represented legitimate, logical arguments as to why certain alternatives would be impractical or impossible to implement. I know others in the room felt similarly.

Say what you will about the price setting process but the reality is, is that the Upfront is a free and open market. If you don't like the price, don't buy. There are other media alternatives available to marketers. Isn't this what we heard at the Madison and Vine conference earlier this year -- that marketers can and will reallocate dollars away from television if the price or delivery don't meet expectations? In the NUDG meeting, pricing discussions were off the table for obvious antitrust considerations. But the point that was made is that certain marketers possess the savvy, the tools and the discipline to leverage the Upfront process to their best possible advantage -- or walk away and decide on alternative paths as they see fit.

In conclusion, the NUDG meeting was a productive exchange. I hope it sets a precedent for how the industry can come together and have an efficient dialogue about our mutual issues and opportunities.

Today's Riff is a reprint from Association of National Advertisers' President-CEO Bob Liodice's blog. It was written in response to Friday's Riff column.