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Weak TV Upfront Market Has Advertisers Pushing for Pricing Rollbacks (EXCLUSIVE)

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The bill may be coming due for continued declines in TV ratings. Advertisers are pressing for rollbacks, or declines in the rates they pay for reaching TV viewers, in early “upfront” ta…

The five broadcast TV networks secured around $9.9 billion in primetime sales in 2022, up 6.4%, according to Media Dynamics Inc., a consultancy that tracks the marketplace. Cable networks sold $10.2 billion, representing an increase of 5.2%. In total, linear TV saw ad commitments last year increase 5.8% to $20.1 billion.

Many advertisers have reduced budgets, according to media buyers, or are waiting to register them until later in the haggling session. But there is a sense that spending from some TV stalwarts is down. Pharmaceutical advertisers, who have been robust spenders in TV for the past several years, are showing mixed support in 2023, according to one buying executive. Auto marketers, hurt in recent years by supply chain issues due to the coronavirus pandemic, have been hesitant so far.

Disney is said to enjoy the most leverage in the marketplace, according to buyers, thanks to its large ESPN sports portfolio. Buyers said the company is also using Hulu, a mature streaming outlet that has always run advertising, to generate interest in its properties. Fox is said to be eager to move money to its Tubi streaming video hub, and seems willing to be flexible when it comes to deals for its linear broadcast and cable networks. Warner Bros.

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