2011 Network TV Upfront Early Outlook: Exclusive Myers Forecast

The detailed 20002020 Jack Myers Media Business Report Media Advertising and Marketing Investment Forecast used for this report is available exclusively to subscribers at wwwjackmyerscom If you are not able to access the site please contact maryannjackmyerscom Redistribution of this report to nonsubscribers is restrictedTaking an early look at the Network Television Upfront outlook Jack Myers Media Business Report is forecasting 25 growth in 2011 calendar year broadcast network TV revenues over 2010 plus 50 increases in broadcast networks39 digital revenues Combined this represents 44 broadcast network TV ad revenue growth to 193 billion Cable network 2011 ad revenues are forecast to increase 62 plus digital revenue growth of 225 for a combined cable network ad revenue projection of 221 billion Continued growth is projected for 2012The 20112012 Network TV Upfront Season therefore should be satisfying for the networks with CPM growth in the 3 to 5 range for broadcasters and 58 range for cablers with exceptions of course for high and low outliers As I39ve reported for the past several years the total dollars invested in the Upfront marketplace are significantly less than generally reported by trade press and Wall Street analysts Myers estimates 85 billion in actual 20102011 broadcast network Upfront investments a dramatic 225 surge over 2009 Upfront spendingThis year39s Upfront spending will be up in the lowtomid single digits as advertisers stay close to their 2010 budgets However networkbynetwork Upfront revenue increases will be heavily dependent on the promotion brand integration and digital assets networks bring to the table as prenegotiating ante Those networks that are not positioned to integrate online video apps mobile experiential social branded entertainment and other nontraditional value will be at a negotiating disadvantage In the post Super Bowl episode of Glee the cast sang quotSee the USA In Your Chevroletquot a brilliantly implemented example of brand integration reminiscent of the 1960s Dinah Shore Show but with the creative execution on steroidsDigital brand integration and experiential marketing support are finally living up to the promise of being critically important components of the tool kit for legacy media companies Agencies are actively reorganizing themselves beyond their core negotiating prowess and repositioning their business models to reflect a focus on content vs audiences and crossplatform integration vs single media procurement During last season39s Upfront presentations digital and integration were largely ignored as networks focused on the basic promise of delivering original hit programs As the economy has stabilized and social media has taken centerstage many marketers are seeking media partners who can best help them communicate their brand differentiation and attributesWhile the importance of traditional ratings audience share and demographics cannot be underestimated it is digital brand integration and experiential marketing that are growing priorities as agencies consider big Upfront deals and market share distribution Networks once again need to focus beyond their core assets to their ability to convert those assets into marketing opportunities for clientsDigital advertising revenues are becoming an important contributor to network TV companies39 bottom lines and it39s critical for these companies to clearly communicate their superiority as marketing partners to advertisers and their agencies Here are the economic imperativesIn 2010 digital represented 41 of broadcast network ad revenues That total will increase to 58 in 2011 according to Myers projections and to 258 of total ad revenues in 2020 for total projected 2020 digital ad revenues of 76 billion Contrary to most analysts Myers forecasts growth in legacy broadcast ad revenues throughout the next decade so the share increase represents incremental amp8211 and not replacement amp8211 revenues for the broadcast networks Myers projects broadcast network TV traditional ad revenues will increase an average 23 for the next decade In 2010 digital represented just 33 of cable network ad revenues That total will increase to just 38 in 2011 according to Myers projections to 185 of total ad revenues in 2020 for total projected 2020 digital ad revenues of 64 billionMyers projects that network cable TV traditional ad revenues will increase an average annual 30 for the next decade Digital ad revenues will increase in the double digits annually throughout this decade for both broadcast and cable TV networksThis data does not incorporate incremental revenue opportunities available to legacy media companies from social pointofinfluence and experiential marketing budgets that are shifting from marketers39 quotbelowthelinequot promotional and direct marketing budgetsThe detailed 20002020 Jack Myers Media Business Report Media Advertising and Marketing Investment Forecast used for this report is available exclusively to subscribers at wwwjackmyerscom If you are not able to access the site please contact maryannjackmyerscom Redistribution of this report to nonsubscribers is restricted

CLICK TO DOWNLOAD THE MYERS REPORT RESEARCH & WHITEPAPERS

2011 Network TV Upfront Early Outlook: Exclusive Myers Forecast

Author

Publish date

Channel

Archived in

Jack Myers

Hispanic Leadership Roundtable: Inclusion, Mentorship, and Building the Next Generation (Video) - By Juan Ayala

More Videos:

CLICK TO DOWNLOAD THE MYERS REPORT RESEARCH & WHITEPAPERS

2011 Network TV Upfront Early Outlook: Exclusive Myers Forecast

Enjoying This Commentary? There's More to Love

Jack Myers

Hispanic Leadership Roundtable: Inclusion, Mentorship, and Building the Next Generation (Video) - By Juan Ayala

The payment was successful

Cookies