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Upfront 2016: TV Networks May Gain Upper Hand for First Time In Years

The 2016 Upfront season may represent the first time in four years in which advertisers may have to pay higher rates of increase to reach TV audiences, according to this Variety article by Brian Steinberg.

Predictions by media buyers include:

-“Some money will go back to the upfront.”  TV may secure more advance ad commitments for coming shows for the first time since 2011.

-“In 2016, the TV networks are likely to seek CPM increases anywhere from 5% to 9%.”  The current market could reverse years of narrowed CPM rates.

-The rise in rates may be due to audience erosion.

According to this article, “For those seeking broad reach, sight-sound-and-motion and brand awareness traditional TV still utterly dominates all alternatives despite the growth of digital media owners and increasing consumption of video on internet-connected devices,” said Brian Wieser, a media-industry analyst with Pivotal Research Group, in a February research note.

See all 5 Cups articles.