• by Paul Gough , May 4, 2004

MTV Networks, which helped define narrowcasting with niche cable channels like MTV, VH1, Nick, and TV Land, is seeking a broader mandate as part of its 2004-05 upfront ad strategy. The Viacom cable networks unit, which already garners about a quarter of all cable advertising revenues, plans to combine chunks of ad inventory across its networks in a way that will also compete with broadcast network reach and market share.

The ratings combo offer will be unveiled later today during MTV's star- studded upfront sales presentation in New York. MTV Networks will also offer its 10-11 p.m. prime time block--home of shows like "Real World" and "The Osbournes"--as a separate buy for advertisers.

MTV Networks' plans to offer aggregate reach will be offered to advertisers and agencies for buys beginning in the fourth quarter. Instead of talking about the disparity between broadcast and cable CPMs--and the reach points that you can get in younger demographics by buying MTV Networks--the sales team is making a solid pitch to shift money from broadcast to cable. There will be several different versions of the buy in different dayparts against different demographics, which will be discussed at the upfront presentation and pitched to advertisers in private meetings.

In the adults 18-49 demographic, for instance, the big four broadcast networks can deliver a rating of anywhere between 3 and 4 from 10-11 p.m., comparable to what MTV Networks can deliver in the aggregate using five of its networks: MTV, VH1, Comedy Central, Spike TV, and Nick at Nite. An order would be placed for one unit, which would have five units associated with it. The integrated order and integrated post would help deal with some of the agency back-office issues on tracking cable TV spots.

"It's a way to get broadcast-level reach with MTV Networks-level quality of audience that we view as superior, and the research would back that up," said Bob Bakish, chief operating officer/advertising sales at MTV Networks. "And we're going to price it at a reasonable discount to broadcast."

Bakish emphasized that it's not a wholesale change in the way that MTV Networks sells ad time. There's only a limited amount of inventory available for this, and it's not the right solution for everyone. But in the upfront, it might work for some of MTV Networks' clients.

"If people don't like what they're seeing in broadcast and they want to trade off a few broadcast spots but they still want the reach, it's a great way to re-express some of that money," Bakish said.

It's not the first aggregate play for a family of cable networks. Discovery Networks and Turner Broadcasting have tried that in the past. There'sspeculation that NBC Cable will do the same, although two industry observers contacted by MediaDailyNews said it made sense for MTV Networks to offer this.

In other news of advertiser interest regarding MTV Networks, the ad sales department will now offer MTV's "Ten Spot" for sale on its own. The block's rating performance delivers substantial audience numbers, regularly 2.0 or better, among several demographics.

"It really is a very high-reach daypart against MTV's demographic, and a little broader," said Bakish. "So what we're bringing to market in this upfront is the ability to buy that pure, rather than only embedded in a broader rotation," Bakish said.