What a difference a year makes.  Last year’s broadcast upfront was sluggish on all accounts; including pace, demand and pricing.  In stark comparison, this year’s market moved more briskly.  As the dust settles, we can draw some conclusions about how the 2010 upfront performed . . .

Overall demand estimates were up 17 percent and broadcast increases ranged from 5 to 10 percent.  Broadcast prime and daytime came in on the higher end of this range, while evening news and late night were on the lower end.  Year-over-year inventory sales were also up, as networks sold 75 to 80 percent of their inventory compared to 65 to 70 percent last year.

Categories Help Boost Market
The increased demand was largely driven by several categories – auto, retail, financial services, wireless and movies.

This positive category growth was mitigated by a move that outraged many.  Fox quietly completed its upfront deals and set the market lower than their competitors believed the market would bear.

What the Future Holds
While sales were more robust than 2009, it is unlikely that upfront spending will return to the $9.2 billion levels of 2007.  This can be partly attributed to fragmentation of the medium.  There are simply more channels and multiple screens for today’s audiences and more places for advertisers to spend.

For advertisers in highly competitive categories, the upfront is still a solid business practice.  However, the rest of the upfront story is yet to be told.  The likelihood remains that not all holds will convert to orders, and options may be higher than the broadcast networks anticipate.

By:  Michele Toller, Empower MediaMarketing Director of National Media