Jon Nesvig, president of sales for Fox Broadcasting, took strong issue with the recent Jack Myers Media Business Report that argued commercial ratings threaten the fundamental economics of the television industry. "Commercial ratings are being used as currency in response to advertisers' needs and agency
requests, enabling them to focus on the impact of their commercials and gain a better idea of who is watching." Nesvig commented in an exclusive interview. "Over the years, I've heard it said that the networks weren't responsive to client needs. With commercial ratings we are being customer friendly. Our programmers are making content available in more
creative ways to viewers and we are recognizing viewing habits have changed and offering advertisers a better picture of what's going on. The idea that supporting commercial ratings is a bad strategy is incorrect. It's a positive customer friendly response."
Nesvig points out the broadcast industry has been challenged in the past to respond and respond quickly to changing market forces. "What we are doing," he argues, "is recognizing a reality and reacting to it." He believes it is especially important for the industry to have a single negotiating
currency that serves both buyers and sellers. "Consumers are watching primetime TV in a different way today. Commercial ratings acknowledge these changes and offer more accountability and responsiveness to advertisers' needs. We are willing to take that risk but we also should not be penalized. It's like buying chicken breasts without the bone so you know how much meat you're getting. You pay extra for the convenience and certainty." Networks are also seeking to include commercial ratings for at least three additional days of DVR-viewing into the currency.
A common currency is essential, Nesvig believes, to facilitate business in the same way the Euro was developed to replace multiple European currencies. Accommodating multiple currencies is not practical, he argues, and while commercial ratings are being implemented for primetime only in this Upfront, he believes they will be applied to other dayparts
and to cable in future years. "Commercial ratings represent an adjustment, but it remains a supply and demand market that requires a single currency. Advertisers and agencies are looking at many different types of proprietary research. We look at all other research for our programming decisions, and sales pitches, but you can't bake all research into a currency. It has to boil down to something that allows you to do business."
Nesvig acknowledges commercial ratings will put more pressure on the creative product, "but that's probably a positive
result. We are in transition and we are the only country where we haven't had commercial ratings so this is a step forward into progress. Ultimately there will be even more sophisticated measurements and interactive features that will tie to results and confirm the value of TV advertising."
Agreeing that the Upfront is evolving more and more into a marketing partnership planning period, Nesvig acknowledges deals are increasingly tied cross platform and integrated sales opportunities. "Ideas are
becoming a bigger factor in how we sell the traditional media by embracing the new media. We are moving from a strictly commoditized marketplace to one that is based on coming up with good ideas and extensions. Whether it's these new models or new commercial ratings data, they do not threaten the fundamental economics of the industry. They enhance it."
Regarding the issue that commercial ratings are focusing too much emphasis on broadcast vs. cable competition, Nesvig says "at the margins cable and broadcast will always be pitted against each
other. But there should not be too much focus on a currency when so many other factors go into the decisions. The television medium continues to be important to marketers. There is a continuing need for advertisers to get their messages to consumers on a timely, day-to-day basis, which is television's strength."
Regarding the timing and pace of this year's Upfront, Nesvig says "It's a momentum marketplace. We'll be talking until both sides are sure they have a good feel for the market. When the pricing parameters
are narrowed, in a strong marketplace advertisers rush to secure the inventory they want. I think we all feel pretty bullish based on what we see now."
