The consumer trend known as ‘cord-cutting’ has caused ad-sales to decline in the past but this year, the “upfronts” sales period shows strong potential for Broadcast and Cable networks. Despite the drop in total ad spending over the past few years, “media buyers and analysts suggest commitments could rise 3% – 5% in this year’s upfront market”. One reason for this resurgence involves the advertisers who decreased spending during the upfronts last year and ended up paying up to “20% premiums for commercial time later in the year”.
There have also been some concerns with digital advertising and the transition back to television could be one explanation for the increased TV ad-sales. Marketers have had issues with “fake web traffic generated by computerized ‘bots’ and the lack of consensus on how to judge when a digital ad is considered viewable”. Although live viewership has declined throughout the industry, “the greatest strength of television remains its ability to reach large numbers of people simultaneously”.
To learn more, read the Wall Street Journal article here.