A+E Networks Pushes Dramatic Upfront Shift From Demos to Total Audience Metrics

Networks have spent years trying to prevent linear ratings from falling among the key adults 18-49 and 25-54 demographics—without much success. Now, A+E Networks is preparing a bold new proposal for marketers at this year’s upfront: Instead of focusing on the audiences who aren’t watching, it wants to concentrate on the ones who still are. The company’s ad sales team will move to transact on a total audience currency—one that accounts for all adults 18 and up—in a dramatic shift that it will push for during the 2021-22 upfront talks. The initiative will also be featured in A+E’s virtual upfront presentation, which will be held March 3. In recent years, A+E Networks—which includes A&E, History and Lifetime—has seen annual ratings erosion of around 9% in the traditional audience demos between 18 and 54 due to cord-cutting and streaming, while total audience numbers have fallen 3% on average. A+E decided to take action after seeing this trend accelerate during the pandemic. Marketers and publishers alike have been “undervaluing the 55-plus audience,” said Peter Olsen, evp of ad sales at A+E Networks. “It’s an audience with money to spend, a willingness to respond to marketing messages, and then there’s a change in video consumption patterns that doesn’t allow the old construct to work anymore.” No longer taking audiences for granted In advertising deals, “the older audiences come along for free” as part of traditional guarantees, Olsen said. But now that the median age of ad-supported TV viewers is 57—outside of all traditional TV demos—“the math doesn’t add up anymore for that to be sustainable.” At the same time, the old adage that older viewers won’t change their brand loyalties—which is why marketers focus exclusively on younger demos—no longer applies to modern audiences. That’s been especially true during the pandemic, when people showed more willingness to switch brands. How to Build Loyalty in a Contactless World The company pointed to research noting that one in three U.S. adults are 55 or older—“the fastest-growing demographic group in the country,” said David Ernst, vp of ad sales research—and that group accounts for $3.4 trillion in annual spending. Contrary to perception, “they do see and respond to advertising,” even more so than younger demos, said Ernst, “especially if advertising is targeting towards them and created with that in mind.” And that’s likely to be the major stumbling block with advertisers: Currently, “less than 5% of all advertising” speaks to this group, according to Ernst, which will necessitate a sea change in the approach of most marketers. “We understand that there's decades of history here, and it's not like clients and agency partners will just flip a switch,” said Olsen, who acknowledges that unlike other initiatives the company has rolled out, this was not a shift that clients had been clamoring for. “So what we're saying is, we believe we have to make a market shift, but at the same time, allow for some of this to evolve over time.” A+E wants to start this discussion with clients now, because otherwise brands “could get squeezed out of a marketplace that's really valuable.” Not an upfront dealbreaker Despite its eagerness to undergo a massive metric shift, A+E said its total audience strategy will not be a dealbreaker in upfront negotiations. The company is also open to including secondary metrics on each deal, which could include a more traditional demographic, an advanced audience metric or a performance-based outcome. “We're very open to a dialogue that isn't, ‘Hey, you’ve got to change or else,’” Olsen said. However, after acquiescing last year to marketers’ calls for flexibility during the pandemic, “we’re saying, to keep this industry sustainable and vibrant, we have to change” the metrics and the audiences that brands market to. Linda Yaccarino Calls for ‘Radical Transformation’ in First Response to ANA Proposal In recent years, “total audience” has become synonymous with multiplatform ratings, as has been the case with offerings from Nielsen’s Total Audience Measurement (which will soon transition to Nielsen One) and NBC’s Total Audience Delivery metric. A+E is looking to extend that definition to account for all adults, in addition to all the platforms and screens they are watching on. “We’re hopeful that it will begin an industry acceleration,” and not just be restricted to A+E Networks, Olsen said. A+E Networks is far from the first to notice the dwindling importance of legacy demos in the overall TV landscape. Brian Wieser, GroupM’s global president of business intelligence, recently told Adweek that the 18-49 demo in prime time only “represents around 4% of all TV impressions.” Virtual upfront plans A+E will tout its total audience strategy at its virtual upfront event, which will be held on Wednesday. Last year, the company was one of the first forced to cancel its annual in-person upfront event due to the pandemic. It pulled the plug just two weeks prior to its scheduled March 25 event, instead making its pitch via virtual agency presentations. This year, of course, the company was able to plan a virtual upfront from the start instead of reworking plans on the fly. The event will include a combination of live and prerecorded elements with A+E Networks execs and talent. “We’re going to tout the continued commitment to original content, especially across the big three networks,” said Olsen, who also promises to keep things short and sweet. “This is not going to be a two-hour event. What we’ve heard from people in the virtual world that we’re in is, brevity is good.” Read Next: From Ad Loads to Upfronts, the TV Industry Braces for Another Wild Ride in 2021