The first break in the Upfront market logjam may be happening this week as broadcast networks reportedly make their first foray into selected media agencies, submitting plans with primetime
offering prices targeting cost-per-thousand increases as high as 12 to 15 percent. Agencies have been arguing for weeks that increases in the mid to low single digits would be optimum.
While network sales executives would not comment on-the-record, they confirmed the CPM increase range, pointing out the current scatter market remains strong; demand for non-prime inventory,
especially daytime and news, is exceptionally strong; and new Nielsen commercial ratings data reduces available rating point inventory in return for more accurate audience delivery assessments, requiring a market adjustment in costs-per-thousand.
A senior network buyer from a leading media agency noted "double digit increases are not warranted at this point when we are still trying to determine budgets. We have been so zeroed in on commercial ratings we have neglected to give weight to ratings erosion and extremely lackluster
program performance. It will be hard to go to clients with big time increases. But when the dust settles, if there is more money in the market justifying increases, can we put to rest the theory that TV is dying?"
