Newfronts and Upfronts and Outfronts, Oh My! Inertia in the Face of Change is a Powerful Force

Originally published April 2013As the industry gathers this week for dozens of digital quot Newfrontquot presentations and parties media agencies media sellers and advertisers are confronting an increasingly confused and cluttered landscape of video options that all but make the myriad events moot as anything but part of a fun gameplaying exercise TV networks continue to dominate even the digital video marketplace with TV networks poised to capture an estimated 50 of advertisers39 total digital video ad spending this year DisneyABC NBCU and Turner Broadcasting have moved to the forefront as part of the digital video consideration set with Fox Weather Scripps MTVN and CBS Interactive hustling to capture their shareYet according to a Myers survey of more than 400 agency and advertiser executives involved in the TV media planning and buying decision You Tube offers greater value for the investment than all of the top 54 leading TV network companies except for CBSTV and ABCTV Also actively competing for a share of Upfront dollars are AOL On Hulu Yahoo Microsoft Facebook Tremor Media Grab Media Alloy Simulmedia Pandora Vevo plus a seemingly endless array of emerging VCfunded competitorsAccording to a new Myers survey of more than 400 advertiser and media agency executives YouTube is rated positively 45 on a five point scale in five performance measures including value for the investment by 59 of TV buyersplanners with digital video responsibility Only ESPN Adult SwimCartoon Network ABCTV Discovery Turner Sports MTV Entertainment Group TBSTNT and Weather Company are rated more favorably by this group These companies along with NBCU Cable and FoxTV have led in packaging multiplatform digital inventory with their TV offerings As digital video inventory is being embraced by media agencies as a significant tiebreaker during Upfront negotiations powered by Nielsen39s new integrated OCR data set more networks are being forced to increase their focus on multiplatform offerings Cable networks which are restricted by distribution contracts from delivering network content across multiple media are developing original digital video content and repurposing content from their libraries to compete in the digital marketplaceFor the first time this year Clear Channel Hearst Condamp233 Nast Gannett and several legacy media companies are also laying claim to a share of marketers39 video ad spending Also in the picture are national TV syndication and cinema ad companies such as Disney ABC Domestic Television CBS Television Distribution Warner Bros Domestic TV National Cinemedia and Screenvision all of which are considered greater advertising values than the majority of TV networks yet they do not offer meaningful digital offeringsFurther compounding the demands on agency planners and buyers are the realities ofamp8226 integrating data sets from multiple media sourcesamp8226 continuing network TV audience erosionamp8226 advertiser interest in earned media and brandcontent associationamp8226 new insights on diminishing audience reach and increasingly repetitive frequencyamp8226 investments in programmatic and automated buying processes trading desks and realtime bidding that will inevitably encompass video in the next two yearsamp8226 OTT viewing and alternate media options such as gaming among younger audiencesamp8226 sophisticated marketing analytics and quotbig dataquot insights enabling marketers to measure and predict the impact on sales of increasingly microscopic shifts in advertising and promotional investmentsamp8226 the growing importance of engagement and activation based performance tools such as new You Tube video measures from Open Slateamp8226 issues of transparency and revenueprofit models being reviewed by agencies and their clientsWhile not a factor in this year39s Upfront and Newfront discussions on the nearterm horizon there will be a marketplace metamorphosis as Amazon LG Samsung Netflix Intel Apple and techcentric competitors develop integrated relationships directly with marketers and at the same time flood the market with incremental and highly appealing video ad inventoryWith all this chaos conflict and competition is it any wonder that both advertiser and agency executives revert to their triedandtrue practices investing the majority of their video ad budgets into broadcast and cable networks The more options that emerge the stronger the traditional players become In two weeks Jack Myers Media Business Report will issue our annual Upfront Investment Forecast Inevitably the TV networks39 revenues and costsperthousand will again be on the rise To outside observers that may seem an unfathomable reality but inertia in the face of change is a powerful force While digital video takes center stage this week behind the curtain and pulling the strings is the great and wonderful OZamp8230 aka DisneyABC CBS NBCU Fox Univision and Turner Broadcasting

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Newfronts and Upfronts and Outfronts, Oh My! Inertia in the Face of Change is a Powerful Force

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Jack Myers

Empowering Women in Media: Insights from Industry Leaders (Video) - By E.B. Moss

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