From a recent Ad Age article (HT: Bob G.):
The four big broadcast networks could take in as much as 20% more in this year's upfront market than they did in 2009 ... If the analysts' report bears out, broadcast networks are likely to see their take rise significantly from last year's recession-crimped session, powered by renewed strength from automotive advertisers, which were hard-hit by the downturn. Likewise, TV executives say they are seeing increased activity from the troubled financial-services category ...
In 2009, advertisers were able to secure price rollbacks in the cost of reaching 1,000 viewers, also known as a CPM -- a standard measure in negotiations for TV ad inventory -- in the range of 1% to 3%. Since that time, however, the Dow Jones Industrial Average has jumped and the economy has shown signs of improvement. Along with it, prices for scatter advertising -- or commercial time purchased much closer to air date -- has jumped to levels some 15% to 25% higher than prices paid in the upfront, according to TV executives and analysts.
The full article is worth reading.
I asked media guru Dick Wechsler, CEO of Lockard & Wechsler Direct, for his take on this news. He writes:
The Upfront media market is shaping up as expected — with big price increases for the Big Four networks. In the wake of an extremely tight market over the past year, is this Upfront market a beacon of the next perfect storm? NO! In fact, a strong Upfront usually foretells a weak scatter market. So we see price stability and better inventory availability for DRTV beginning in 3Q.
When asked if double digit increases in the Upfront were good for DRTV, even my Magic Eight Ball read 'Yes.'
