The TV Ad Upfronts: Let The Unaudited Boasting Begin!
If you follow the TV trade press, you’ll know that the news of ad deals for the 2011-12 broadcast season have begun to trickle in, “The upfront deal-making has begun. Fox closed a significant amount of business, with CPM** rates up in the 11% range, sources said. Fox declined comment.”
A few things to keep in mind as you read the ad upfront reports:
- It’s all unaudited (and typically unattributed) boasting.* It’s in the best interests of the networks to get “news” of price increases out into the marketplace.
- When the volume of the product you’re selling (adults 18-49 viewers) has declined by 5-15%, you need price increases that big just to keep revenue steady!
* Again, I’d love to claim credit for “unaudited boasting”, but I cribbed it from Ad Age’s Michael Learmonth.
**CPM = cost per thousand (in this case adults 18-49 viewers).