NBCUniversal Sees Ad Volume Gains in TV’s Upfront Market
30.06.2022 - 20:21
/ variety.com
Brian Steinberg Senior TV EditorTV networks continue to fare better than expected in the current “upfront” market as they harness streaming video and sports — and a willingness to accept lower rates — in order to keep Madison Avenue’s money flowing.NBCUniversal said it wrapped its upfront negotiations in the annual upfront, and could have seen advance advertising commitments for NBC’s primetime schedule rise by as much as 20%. Variety estimates that upfront commitments for NBC primetime could total between $3.2 billion and $3.4 billion, compared with between $2.68 billion and $2.98 billion for its primetime broadcast inventory in 2021.
In 2020, NBC secured between $2.68 billion and $2.84 billion.Haggling takes place in a tricky economy. The networks have largely agreed to take narrower pricing hikes than last year, according to multiple people familiar with the negotiations.
Why? Because they realize that the threat of a recession and supply-chain issues have left their clients with less visibility into the future. Tech giant Microsoft indicated it would sit out this year’s upfront, and auto advertisers pulled back.
Many of the networks sought increases in the cost of reaching 1,000 viewers, a measure known as a CPM that is critical to these annual negotiations between advertisers and TV networks, of between 8% and 12%, compared with hikes of more than 20% last year. Demand was driven in part by advertisers’ interest in streaming, as it has been at other media companies.
NBCUniversal said digital ad commitments rose by nearly 20% compared with last year’s market, with around $1 billion in commitments earmarked for Peacock the company’s streaming service. Sports also proved alluring, with marketers interested in NFL
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