Advantage Media Management, Inc., 5/25/10 by: Matthew Reiss -
 
It will definitely be an interesting year regarding the Broadcast/Cable TV upfronts in terms of how quickly the markets will move.  Some speculate a complete wrap up by no later than July 4th, 2010.  Others anticipate deals will be made and done by mid-June.  Advantage Media Management, Inc. takes the position that, while the upfront certainly appears to be on record setting pace for hashing out deals, it might also be slowed tremendously by the 800 lbs. Gorilla in the room, rate increase. 
 
 
Advantage Media Management, Inc. expects to see rate increases anywhere from 7% to as high as 13% on CBS.  Rate increases can sometimes be considered (to an advertiser) a deal killer rather than closer.  The truth is that Advertisers have enjoyed lower rates the past couple of years because of the "down economy".  Guess what?  We're still in a down economy and if you haven't noticed the stock markets are losing points, not gaining them (just like television).   
 
 
So while networks like CBS and FOX are raising their rates, advertisers should start thinking about how to get their agencies and the network vendors back down to reality rather than setting records.  Individually, buying organizations are less intimidating to a Network like CBS.  Collectively, they can bring a network to it's knees.  Unfortunately though buying groups are not run by advertisers they're run by agency folks who don't feel the same pain that the people "footing the bill" do when they spend more money for less advertising.   
 
 
Your guess is as good as my guess on when these upfronts will closeout.  However, one things for certain, rates will go up, agencies will continue to convince their clients to pay up,  and the world of advertising selling and buying will continue to go round and round.    Take me to the scatter market!