ABC Leads Nets In Upfront Sales, Others Still Pleased

The rate increases are in the low to mid single-digits, but the broadcast networks weren't singing any blues as the upfront moved methodically into the Memorial Day weekend. Especially ABC, whose fortunes have turned around so abruptly the net didn't need to try and use its new ratings prowess to bump up rates, but instead is banking on premium- paying clients flocking to its Thursday night lineup to fill the coffers. Five of the six networks wrote significant business by Friday. ABC sold virtually all of its upfront inventory, while CBS and sibling UPGN both had cut deals for about one-third of their for-sale inventory. The WB also was near the one-third mark in selling its prime-time inventory, and Fox was beginning to write business. Only NBC has not written any upfront business, according to media agencies and industry insiders. Omnicom's OMD and Publicis Groupe's Zenith, traditionally early movers, were said to be the most aggressive media agencies in terms of early deals, with Publicis' Starcom and MediaVest in the middle of the pack, and Interpublic's Magna and WPP Group's Group M sitting back longer. ABC did its deals at an average cost-per-thousand rate increase of 5 to 6 percent, while CBS and UPN have been cutting deals in the 4 to 5 percent range. Fox, meanwhile, was doing early deals with 3 and 4 percent CPM increases, and the WB was in the 2 to 3 percent range. ABC, which had some of the hottest new shows on television this season, was seen as the network that would set the ceiling on CPM-percentage hikes advertisers would pay in this upfront. The Disney-owned network's decision to be the first to write its prime-time upfront business—at relatively modest CPM gains—surprised some industry observers who thought it might try to capitalize more on its double-digit ratings increases this season. The network, because of its ratings gains, had a lot more gross rating points to sell in this upfront, and bumping up prices too high would have impacted its ability to sell all of its available inventory. Also, ABC was able to bring in more dollar volume by replacing some advertisers that generally pay lower rates—such as packaged goods clients—on Thursdays, with advertisers in categories such as movies and retail that already pay a premium rate on that night. While the WB was able to write business at positive CPM increases, despite coming off ratings declines this season, agencies were taking a harder line with NBC, the other suffering hefty ratings shortfalls. One buyer posited that NBC might be forced to roll back its rates in order to fill any slots. Some of ABC's competitors said that ABC sales president Mike Shaw made the right decision on pricing, even if it set the bar lower than some had hoped. Another reason the networks could be content with taking lower CPM increases is that advertiser budgets overall are down—in some cases as much as 10 percent. Pharmaceuticals and automakers, traditionally large broadcast advertisers, were both slow to place money.

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ABC Leads Nets In Upfront Sales, Others Still Pleased

John Consoli

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