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UPFRONTS OFFER TV NETWORKS A THREE-PHASE OPPORTUNITY

By John Bishop
( Broadcasting & Cable )
published June 21, 2022

Moment of flux is a good time to reset the seller-customer relationship

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John Bishop (Image credit: Advertiser Perceptions)


The 2022 TV upfronts have provided TV networks with a three-phase opportunity.



Networks are caught between conflicting speeds. On one hand, there‘s a rush to
catch up with streaming and heightened desire for cross-screen activation and
measurement. On the other hand, Nielsen’s hold as the standard-bearer for
measurement is slowly giving way to alternatives, and the state of the market is
uncertain and just beginning to sort out.



This change and tension gives networks a rare opportunity. With the medium at an
inflection point and the future so obviously in flux, there’s a real appetite
for stewardship. Networks can use this moment to reset the direction for
advertiser relationships.




To do it, networks can focus on now, near-term and next.



Deliver what advertisers need now. While connected TV (CTV) is hot, linear TV
remains advertisers’ and viewers’ foundation. A study we’re just completing with
Hub Research shows that 95% of viewers still watch ad-supported TV, including
the growing number who access all their content through a CTV app. For this
reason, half of advertisers still see CTV in a supporting role. Despite rising
doubts about Nielsen ratings, linear TV presents a single stable system whereas
CTV measurement is the Wild West with individualized sales metrics and KPIs.



All of that means networks can help advertisers forge bedrock reach and
attribution. Despite all the chatter about flexibility with terms, that’s the
real issue here.

Design the near-term bridges. Advertisers need new ways to target and
personalize ads across video channels. They also need help crossing the divides
between alternative measurement currencies. Networks hold keys to both.

While CTV buying has cooled as many advertisers have trimmed budgets, that’s
momentary. Before inflationary forces multiplied, 84% of advertisers were ready
to buy big live events on CTV and dedicated 20% of their budgets to it. They’re
increasingly interested in reaching identifiable viewers on exclusive content.

When the economy rebounds, we can expect CTV to explode the way all TV did last
year. Indeed, in March, 85% of advertisers that had trimmed CTV budgets said
they will reinstate them by the end of 2022.

While networks have responded to declining confidence in Nielsen with new data
measurement frameworks, those frameworks are individual, proprietary and
unverified. Advertisers need help with integrating them.

Drive the next phase of TV. The next generation of advanced advertising will
likely focus on providing greater value to the viewers that advertisers target.
As Comscore CMO Tania Yuki recently put it, “The next wave of innovation will be
a new paradigm where ad buying works in concert and partnership with the
consumer in pursuit of delivering better value, based on greater understanding
and empathy.”

Networks have a clear role in this transition to making advertising work better
for consumers. The current flux in measurement provides an opening to start
talking about relevant innovation now. Alternative measurement currencies
complicate advertisers’ evolution into holistic buying because consolidated
planning still gives way to buying and measuring by platform. That makes the
business return on investment projections (justifying Upfront commitments) and
reporting that procurement demands difficult for advertisers to produce
themselves.

This, in turn, changes the dynamic of buyer-seller relationships in the Upfront.
Particularly with large agencies, the role of the rep changes from doing favors
— “Got you covered, we’ll figure out where it goes” — to providing the
intelligence to structure effective, measurable cross-platform commitments.
Ensuring audience delivery from linear to CTV and complementary products like
podcasts to make a quantifiable difference becomes a seller’s primary
responsibility.

The critical inflection for TV in 2022 is relationship strategy. The networks
that make it easy for advertisers to test new media and creative combinations
and more accurately measure campaign effectiveness will gain a step during this
season’s change. In the process, they will establish a new baseline for TV
sales. ■

John Bishop


John Bishop is VP of business intelligence at Advertiser Perceptions.

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