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New Media Options Cause Stall In Upfront Market

The upfront network TV ad market is finally moving, but it took awhile. And some believe it may go more slowly than usual and take a long time to complete, for a wide variety of reasons--most of which never existed before. "Advertisers are holding money out of the market this year because they want to experiment with other forms of media," said Bill Cella, chief executive of ad buying powerhouse Magna Global. "Last year it was starting, and this year it's really happening." Some experts say marketers are turning away from network TV in favor of new and emerging media forms and as a result will spend $500 million less on the networks than last year. Compared with the high-water mark just three years ago, when the networks instituted price hikes of 15 percent and reaped $9.3 billion in just 72 hours, "there is more of a balance of power," said Andrew Donchin, director of broadcast for ad buying firm Carat USA. "The demand for network advertising has slowed down a bit, and that gives the buyers more leverage." If advertisers hold back dollars from the upfront, it could have implications for the entire TV industry. The rhythms of television production in Los Angeles have long been tied to the TV advertising calendar. In the 1950s, it was the auto industry's desire to draw attention to its new models that prompted the networks to make September the official start of the TV season.

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