Myers Foresees 'Flat' Upfront Market

Author:
Publish date:
Updated on

Upfront ad spending should be flat this year compared with a year ago,
Jack Myers Report said Thursday.

There will be 'some redistribution of budgets based on which sellers are most
willing to reduce CPMs [cost per thousand homes] in return for share,' Myers
said.

Averaged across the broadcast-television and cable networks, Myers projected
that 'CPMs should be down 4 [percent] to 6 percent, with CBS, The WB [Television
Network] and Lifetime [Television] at the high end of CPM increases.'

Myers is predicting that 'the upfront market will be tiered, with a number of
early deals struck between the large mega-buying shops and multiplatform media
companies.'

By July 4, Myers said, 'We can expect a surge of deals ... by networks such
as ABC, USA [Networks Inc.], Discovery [Networks U.S.] and Turner [Broadcasting
Sales Inc.], followed by a long summer of protracted negotiations.'

As part of its Advertising Confidence Index survey of 125 advertiser and
ad-agency executives, conducted in February, Myers found that 48 percent of
clients expected their upfront spending to be equal to last year and 31 percent
less than last year, compared with nearly 46 percent and 42 percent,
respectively, on the agency side.

Looking ahead to third- and fourth-quarter scatter spending, Myers found that
37 percent of clients felt that those budgets would be greater than a year ago
and 31 percent felt that they would be equal or less than a year ago.

Among agencies, however, 34.5 percent felt that scatter spending would be
equal to or greater than a year ago and nearly 31 percent felt that it would be
lower.

Related