TV networks have some news for Madison Avenue: TV ads still cost money, even amid a pandemic. The nation’s big media companies are trying to resist great pressure from advertisers and media buyers …
There’s little question that the networks are facing headwinds. No prognosticator believes they will match the haul of ad commitments secured in last year’s market, when
estimates the nation’s five English-language networks won between $9.6 billion and $10.8 billion for primetime ad inventory – the fourth consecutive year that the networks saw increasing volume for their primetime schedules. One media executive says some clients have struck early deals in this year’s market that are “significantly” reduced in terms of the cost of reaching 1,000 viewers, a measure known as a “CPM” that is central to these annual discussions between U.S. TV networks and their advertisers.
Even so, there is some effort by the TV giants to resist bigger calls for reductions that would reverse gains the networks have made in recent years. “Networks are going to seek similar increases to previous years until they see budgets being down significantly. Agencies should be looking for minimal increases, at worst,” says one media buyer, noting that the bulk of this year’s upfront efforts have yet to move. “The gap is too wide right now and there are still too many unknowns to get much traction in negotiations right now.”
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