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State of the Screens

TV Upfronts: Big 4 Networks Pushing Fewer Ads and Safer Spaces

By May 23, 2018No Comments

Less ads: Reducing the ad load was a big theme at the upfronts.

The big question: Will the increase in ad costs and viewership offset the reduced number of ads sold?

Proposed ad cost increase for NBCUniversal:
1) NFL SNF — $728K → $1.4M
This is Us — $394K → $788K

Quote from Marc Pritchard — CMO @ Proctor & Gamble:
Q: Are these new ad concepts worth more money because they are more scarce and isolated from other commercials?
A: It really depends. It depends on how many people it’s reaching. It depends on the context of the show. But we are willing to invest in engaging content where people are going to pay attention — as long as it pays out. …It’s got to be worth it. We’ve got to see the impressions and the sales lift out of it to make it worthwhile.

Flashback: Fox Wants to Reduce Ad Time to Two Minutes per Hour by 2020

Current/Proposed ad time per hour (% change):
1) 2018–13m
2) 2020–2m (↓ 85%)

How could Fox potentially make up the lost revenue from fewer minutes of ads?
1) Increase the cost of each remaining ad
2) Run shorter ads (6s, etc.)

How would the math for #1 work?
1) 2017 Primetime — $43/CPM
2) 2020 Primetime — $280/CPM

Props to @jpoggi ‏ for breaking down some quick math with video!

More: Sports Fans Like Matches, Not Ads. So TV Has Changed Its Game

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.