Sony Pixel Power calrec Sony

Buyers Downplay Strong Scatter On Eve of Upfront

03/05/2016

WHY THIS MATTERS

The upfront remains the time when the bulk of advertising inventory is sold by broadcast and cable TV networks, setting the tone for the season.

Related: Digital Video Market Surges Into NewFronts

This years upfront feels much different than the last couple. Scatter has been exceedingly hot and that's boosted ad revenue for most of the programmers the last few quarters.

Second-quarter scatter has long been a bellwether for the upfront, but even during the fourth quarter and first quarter, scatter market volume and pricing have encouraged senior media executives such as CBS' Leslie Moonves and Discovery's David Zaslav to comment on how strong they expect pricing and volume to be in the upfront.

But the upfront is also being shaped, as usual, by additional factors. There's been a perception that last year, marketers put a lot of money into digital, they didn't get the returns they were expecting and many brought money back to TV.

At the same time, the media-buying world has been turned upside down by a continuous parade of big brands with billion-dollar budgets reviewing their account and switching agencies. Among the biggest companies conducting reviews were Procter & Gamble, Unilever, General Mills, Johnson & Johnson, BMW, Visa and Volkswagen.

While those accounts shifted, some buys might have been delayed, pushing money into scatter where prices were considerably higher. There could be a priority on getting money down in the upfront, if only to control costs.

There was also a consolidation at advertising agency holding company Publicis. After many years of having its big agencies-Starcom, Mediavest and Zenith-negotiate upfront deals separately, Publicis has formed the Publicis Media Exchange and will have media buying veteran (and B&C Hall of Famer) John Muszynski handling the negotiation for its biggest clients with the top networks.

In some ways, Publicis' new approach resembles those of GroupM and Interpublic Group, which centralized their agencies' upfront negotiations years ago.

Another change last year came when longtime Magna Global exec Todd Gordon left to join programmatic company Tube Mogul. He was replaced by David Cohen, who has been with Universal McCann.

Related: Market Movers: Broadcast Sales Execs

Some network sales execs note that the increased concentration on the buy side reduces the bulk of the upfront to five agencies talking to a half-dozen media companies. In a year when there's a buyers' market, that could make life tough for the networks. But this year, when it looks like a sellers' market, there's not as much pressure.

To get a clearer picture of the forces facing the upfront, B&C business editor Jon Lafayette asked a series of questions to some of the most influential media buyers. Here are the edited responses of those who participated.

TV executives are unanimously talking about how hot the scatter market is and how that will translate into a strong upfront. Are you advising your clients to put more money into this upfront? And what pricing do you foresee and how can you moderate the increases?

David Cohen, Magna Global: We believe the scatter market strength has definitely been driven by the lack of supply due to ratings declines. In primetime alone, we have seen 2 years of ratings decline [-17%] against adult audiences. We've seen media partners come in and out of sale as they try to make advertisers good due to ratings shortfalls. Magna predicted this trend, as we saw clients requiring greater flexibility and holding out for the calendar year upfront and scatter markets. We believe that at the end of the year, spending will still be flat to only slightly up vs. a year ago.

These dynamics, coupled with the impending reduction of advertising loads (in cable) will lead to an inflationary upfront market. We are predicting high-single-digit increases, which is forcing a re-evaluation of other options for clients. With fully 30% of video consumption happening outside of linear television-over-the-top, subscription video-on-demand, online video-we believe the market is ripe for a significant share shift out of linear TV and into other video channels.

Chris Geraci, OMD: Our guidance, with regard to upfront budget levels and price projections, is client-specific, complex and proprietary. However, I can tell you that our approach to the upfront market is zero-based and primarily forward-looking. While a strong scatter market in one broadcast year may indeed have direct correlation to the marketplace dynamics of the preceding upfront, it does not automatically indicate strength in the approaching market. This is especially true in an environment where the landscape and the consideration set of video options are changing so rapidly.

Mike Law, Amplifi : Some things never change during the pre upfront season the sales side has always talked about the strength of the market! The dynamics of the market are that supply on linear TV is shrinking and demand at this stage appears to be flat. This lends itself to an inflationary market. We need to be flexible with our dollars and think about where video supply exists across all screens to help mitigate inflation. We work with our clients to spend dollars when the time is right, be that upfront or scatter.

Are clients really moving money from digital back to TV? What digital video products provide an alternative to TV?

Cohen: We are not seeing a movement from digital budgets back to TV, in fact-for the first time ever-we are predicting that digital budgets will exceed television budgets in the U.S. Full-episode players, VOD, OTT, YouTube, Facebook and other high-quality video networks are viable alternatives to traditional TV.

Geraci: The question really shouldn't be whether money is moving from digital back to TV,' but how much fluidi
LINK: http://www.broadcastingcable.com/news/currency/buyers-downplay-strong-...
See more stories from bandc

Most recent headlines

09/11/2025

Dalet Unveils Agentic AI Media Workflows at IBC2025

Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...

21/10/2025

Globecast Appoints G Morgan as EVP of Sales for Globecast...

Globecast, the leading provider of broadcast, media and entertainment managed services, has announced the appointment of G Morgan as Executive Vice President of...

21/10/2025

Visual Data Strengthens Global Leadership with Appointmen...

Visual Data announces the appointment of Maz Al-Jumaili as Senior Vice President, Worldwide Localization, to advance client engagement, strategic partnerships, ...

21/10/2025

Grup Mediapro to Deliver Prime Video NBA Coverage to the Hispanic Market

As Amazon's Prime Video prepares to launch its coverage of NBA basketball under a major new deal, Grup Mediapro has announced that it is working with the st...

21/10/2025

ADTH to Upgrade NextGen TV Receivers With Gateway Capabilities

ATLANTA Good news for consumers using an Atlanta DTH receiver to watch ATSC 3.0: with a new software update, they will be able to blanket their homes with Wi-Fi...

21/10/2025

Study: 'More Critical Than Ever for Brands to Focus on Hispanics

While recent news has been heavily focused on Hispanic migration into the U.S., The 2025 Hispanic Market Report from Claritas highlights the fact that this gr...

21/10/2025

RWS Appoints Michael Wayne as Head of Media and Entertainment

MAIDENHEAD, UK RWS has hired Michael Wayne as its head of media and entertainment in Los Angeles where he will lead the company's media localization busines...

21/10/2025

Imagine Communications Acquires Pixel Power From Rohde an...

Imagine Communications and Rohde & Schwarz today announced a definitive agreement under which Imagine will acquire Pixel Power Limited, a wholly owned subsidiar...

21/10/2025

ADTH Announces New NEXTGEN TV Gateway Receiver Implementi...

Atlanta DTH (ADTH) today announced a major update that will expand the functionality of its NEXTGEN TV receiver by enabling gateway capabilities allowing viewer...

21/10/2025

Heartland Video Systems Partners with Zixi for Resilient...

Heartland Video Systems, Inc. (HVS), a premier video systems integration, consulting, and expert ATSC 3.0 implementation firm announces that it has partnered wi...

21/10/2025

QuickLink Appoints Austin Hinton as Solutions Enablement...

QuickLink, the leading provider of award-winning video production and remote guest integration solutions, today announced the appointment of Austin Hinton as it...

21/10/2025

Miri Technologies to Unveil New Resilient Internet Platfo...

nternet connectivity startup Miri Technologies Inc. will use this week's NAB Show New York as the launch pad for its latest ground-breaking innovation, the ...

20/10/2025

Inside TAMS: How Time-Addressable Media Stores Could Redefine Sports Workflows

Inside TAMS: How Time-Addressable Media Stores could redefine sports workflows By Paul Markham Friday, October 17, 2025 - 08:57 Print This Story A penalty...

20/10/2025

Transformational Production: Inside TVN's Remote Production Push for the DFL's Bundesliga 2

Transformational production: Inside TVN's remote production push for the DFL...

20/10/2025

How NBC Sports Transitioned Stamford Facility to One Format: 1080p HDR

How NBC Sports Transitioned Stamford Facility to One Format: 1080p HDRMulti-year plan harmonizes workflows, simplifies operationsBy Ken Kerschbaumer, Editorial ...

20/10/2025

NBA on NBC' Studio Production Team Is Ready for Tip-Off With Coast-to-Coast Tuesday'

NBA on NBC' Studio Production Team Is Ready for Tip-Off With Coast-to-Coast...

20/10/2025

Under Pressure: TVN CEO Markus Osthaus Considers the German Sports Broadcasting Market

Under pressure: TVN CEO Markus Osthaus considers the German sports broadcasting ...

20/10/2025

Carmen Emmi's Plainclothes Evokes the Rawness and Sensuality of New Queer Cinema

(L-R) Maria Dizzia, Carmen Emmi, and Russell Tovey attend the Plainclothes pre...

20/10/2025

Search and Follow Your Favorite Venues on Spotify

In March, we launched Concerts Near You to help listeners find concerts from their favorite artists. Since then, more than 3 million people have used it to disc...

20/10/2025

Arte Preta Brasileira Destaque No Dia AMPLIFIKA 2025

Em diversas cidades do Brasil, um movimento tem se fortalecido para celebrar o poder, a beleza e a profundidade da criatividade negra. O Dia AMPLIFIKA, agora em...

20/10/2025

Black Brazilian Artistry Takes Center Stage During AMPLIFIKA Day 2025

In cities across Brazil, a movement is growing that celebrates the power, beauty, and depth of Black creativity. AMPLIFIKA Day, now in its fifth edition, return...

20/10/2025

The Republic of Korea Selects L3Harris for Airborne Early Warning and Control Aircraft Program

Airborne Early Warning and Control aircraft rendering...

20/10/2025

Imagine Communications Acquires Pixel Power From Rohde & Schwarz

DENVER and MUNICH Imagine Communications today announced its plans to acquire Pixel Power Ltd., a wholly owned subsidiary of Rohde & Schwarz. Financial terms of...

20/10/2025

Globecast Appoints G Morgan as EVP of Sales, Globecast Americas

LOS ANGELES G Morgan has joined Globecast, a provider of broadcast, media and entertainment managed services, as executive vice president of sales, Globecast Am...

20/10/2025

Heartland Video Systems, Zixi Partner on IP Networking for Broadcasters

PLYMOUTH, Wisc. Heartland Video Systems and Zixi have partnered to enable broadcast-quality live video delivery over any IP network....

20/10/2025

A. R. Rahman on Facing Fear and Finding the Divine

A. R. Rahman on Facing Fear and Finding the Divine In an interview with Berklee President Jim Lucchese, the Oscar-winning composer reflects on how courage and...

20/10/2025

Sky unveils thrilling trailer of Original film Nuremberg, starring Russell Crowe, Rami Malek and Michael Shannon

Monday 20 October 2025 To view this content, please enable our use of cookies. ...

20/10/2025

Rohde & Schwarz transfers Pixel Power to Imagine Communications

Rohde & Schwarz transfers Pixel Power to Imagine Communications Companies work collaboratively to ensure continuity and ongoing support for existing customers...

20/10/2025

RT Prime Time to host final Presidential Debate

RT 's Prime Time is set to host the final Presidential Election Debate this Tuesday night, October 21, providing an opportunity to hear directly from Irelan...

20/10/2025

NVIDIA and Google Cloud Accelerate Enterprise AI and Industrial Digitalization

NVIDIA and Google Cloud are expanding access to accelerated computing to transform the full spectrum of enterprise workloads, from visual computing to agentic a...

19/10/2025

Sins of Kujo' Comes to Life in New Live-Action Series Set for Spring 2026

Back to All News Sins of Kujo' Comes to Life in New Live-Action Series Set for Spring 2026 Entertainment 19 October 2025 GlobalJapan Link copied to cl...

18/10/2025

NESN Taps Harmonic for Primary Live Sports Distribution

New England Sports Network (NESN) has chosen Harmonic, working with Astound Business Solutions, as its enterprise technology partner to transform primary distri...

18/10/2025

DirecTV Launches Gray's Gulf Coast Sports & Entertainment Network

NEW ORLEANS, La. In the run-up to the start of the NBA season, WVUE-TV and Gray Local Media have announced a deal with DirecTV that will greatly expand access t...

18/10/2025

Berklee Celebrates 40 Years of the Fall Together Concert

Berklee Celebrates 40 Years of the Fall Together Concert Faculty composers Bob Pilkington and Greg Hopkins are among the featured artists for this year's ...

17/10/2025

NEP Group Receives New Equity Investment From 26North Partners LP, Co-Investors

NEP Group Receives New Equity Investment From 26North Partners LP, Co-InvestorsCarlyle remains the largest shareholder as the company prepares for the futureBy ...

17/10/2025

Apple Lands Five-Year Deal for F1 Distribution in the U.S.

Apple Lands Five-Year Deal for F1 Distribution in the U.S.Besides airing on Apple TV, the sport will be amplified on other Apple servicesBy Ken Kerschbaumer, Ed...

17/10/2025

SVG Sit-Down: Marshall Electronics' Bernie Keach on the Future of PTZ Cameras

SVG Sit-Down: Marshall Electronics' Bernie Keach on the Future of PTZ Camera...

17/10/2025

L2 Productions' REMI Facility in Austin Can Produce Content From Anywhere

L2 Productions' REMI Facility in Austin Can Produce Content From AnywhereMusic festivals, sports events are produced via flypacks and remote control roomsBy...

17/10/2025

Give Me the Backstory: Get to Know Sarah Dowland, the Filmmaker Behind Sue Bird: In The Clutch

By Lucy Spicer One of the most exciting things about the Sundance Film Festival...

17/10/2025

Cooper Raiff Returns to the Sundance Film Festival With His Independent Series Hal & Harper

(L-R) Christopher Meyer, Addison Timlin, Cooper Raiff, Lili Reinhart, Alyah Chan...

17/10/2025

Ferramenta de arte da capa de playlists do Spotify chega ao Brasil com uma noite de autoexpresso

M sica e arte se uniram em uma noite especial na semana passada na ZIV Gallery, ...

17/10/2025

Spotify's Custom Playlist Cover Art Tool Arrives in Brazil With a Night of Self-Expression

Music and art came together for one special night last week at ZIV Gallery, an i...

17/10/2025

Spotify and FC Barcelona Extend Partnership Through 2030

Spotify and FC Barcelona are extending our partnership through 2030, continuing a collaboration that's redefining how fans, players, and artists connect. Th...

17/10/2025

Sports Fishing Championship Deploys DigitalGlue Storage Platform

MURRIETA, Calif. The Sports Fishing Championship (SFC) has deployed DigitalGlue's creative.space storage platform to streamline video production by centrali...

17/10/2025

TV Ad Impressions for Football Spiked in Q3

BELLEVUE, Wash. Football continued to cement its reputation as a bulwark of TV advertising in Q3 2025 with new data from iSpot that showed both the NFL and coll...

17/10/2025

Reeling in the Chaos Sports Fishing Championship Simplifi...

The Sports Fishing Championship (SFC), the premier competitive saltwater fishing series, has transformed its production workflow by adopting creative.space, the...

17/10/2025

QuickLink Unveils StudioPro Version 4 With Major Enhancem...

QuickLink, a leading provider of award-winning multi-camera video productions and remote contribution solutions, announces the release of StudioPro Version 4, ...

17/10/2025

Westcoast Pixel dazzles with dynamic 3D video projections

Although the annual Grammy Awards celebration is best known for recognizing achievements in the recording industry, the show often proves a visual spectacle as ...

17/10/2025

Alex Dunfey Promoted to CTO at OpenDrives

OpenDrives, Inc., a leading provider of software-defined data storage and data services, has promoted Alex Dunfey to Chief Technology Officer (CTO) from his for...