Every so often the CNBC interviews bring on someone from either the media buying/planning side of the business or a network/cable network executive telling about how things are. With the botched soup of this year's upfront buying (see I'm using jargon) and the clear signals that the recession might be over but no one can afford expensive beer as of yet, television advertising can tell a lot of tales and it might be important to understand what is being said. The link above will take you to a basic glossary of advertising terms so when the talking heads us mumbo-jumbo, you have an idea of what they are trying to say.
The Upfront buying season occurs late spring. Upfront means buying "up front"....that is prior to the fact. The networks put on big deal dog and pony shows that preview the fall lineup. Remember this might be May and the schedule they are selling is usually middle/late September - i.e. "the fall season".
As networks rebuild and rearrange schedules they do this so media buyers (I was one) get a preview, figure out their budgets and allocations and make a deal in advance. In return, the networks run a rate card that is a discount and they generally guarantee the amount of rating points or impressions that will be delivered. This year's Upfront fell 9-15% under what was expected and the goals were not so hot so revenue that is guaranteed is way down from years past. We won't see the real bad news until 4th quarter which will be reported 1st quarter so the "cows coming home" is a long time out but they are definitely coming.
The point here is that there was just someone on CNBC talking about advertising issues for the networks. When CNBC has a guest in this area it usually is in advance of some news that is about to hit or in response to some buzz on the street. Anyway, the link in the title takes you to a glossary and you might just want to stay tuned.
The Upfront buying season occurs late spring. Upfront means buying "up front"....that is prior to the fact. The networks put on big deal dog and pony shows that preview the fall lineup. Remember this might be May and the schedule they are selling is usually middle/late September - i.e. "the fall season".
As networks rebuild and rearrange schedules they do this so media buyers (I was one) get a preview, figure out their budgets and allocations and make a deal in advance. In return, the networks run a rate card that is a discount and they generally guarantee the amount of rating points or impressions that will be delivered. This year's Upfront fell 9-15% under what was expected and the goals were not so hot so revenue that is guaranteed is way down from years past. We won't see the real bad news until 4th quarter which will be reported 1st quarter so the "cows coming home" is a long time out but they are definitely coming.
The point here is that there was just someone on CNBC talking about advertising issues for the networks. When CNBC has a guest in this area it usually is in advance of some news that is about to hit or in response to some buzz on the street. Anyway, the link in the title takes you to a glossary and you might just want to stay tuned.
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