A number of indications point to a rough ride for sellers in this year’s upfront ad sales period, according to a report by Media Life Magazine. High on the list is the latest round of forecasts.
“Magna Global predicts the volume of total broadcast and cable sales will decline by 7 percent compared to last year, to $20 billion. That includes a 10 percent decline for broadcast and a 5 percent dip for cable,” the story reports. “Last year, by comparison, broadcast volume fell by 6 percent and cable was off 5 percent.”
None of the major forecasters are pointing to possible upfront gains or even a flat sales period, the report notes. Increases in CPMs, meanwhile, are expected to be smaller than a year ago, with the usual variation by network.
Among the other indications, TV ad spending is off pace so far this year, the report notes. Based on the Standard Media Index, revenue was down 16% last month.
Additionally, scatter pricing for the current TV season has been soft, the article reports. And of course, the growth of digital as a viable competitor to broadcast and cable remains a big factor.
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