(MediaBuyerPlanner) An unofficial survey of TV buying executives revealed that early estimates for the dollars to be spent at this year’s broadcast prime-time upfront fall between $8.7 billion and $8.8 billion – a one to two percent drop from last year, translating to a loss of $100 million to $200 million – MediaPost writes.
“The upfront won’t equal that of year ago,” said the president of U.S. broadcast and programming for MediaVest USA, Donna Speciale. “People will be holding back to have more flexibility. Not because budgets will be down. Some of the upfront dollars will go into digital platforms. Other clients will take a wait for [mid-season] opportunities.”
Both cable and broadcast networks’ adult 18-49 gross ratings points will stay flat or slightly decrease 1 percent to 2 percent. Cost-per-thousand viewer (CPM) prime-time pricing is estimated to rise from 1 percent to 3 percent.
As the network CPM price leader in 18-49, NBC remains the target of ABC, Fox, and CBS. Media execs reported that both ABC and CBS sold prime-time shows last year that were at 12 percent to 15 percent discount to NBC. Media analysts estimate this year’s price discount will only be 6 percent to 8 percent.
This year’s broadcast price increases could mean good things for cable. One veteran cable advertising sales executive said, “There won’t be those kinds of deals again this year. Buyers will look to cable to grab some of those savings.”
