There has been so much hype in the last year over the :30 spot and the future of television advertising. Finally, marketers and advertisers have caused enough stink to whip the content providers into shape. The initial balk surrounded the DVR factor and time delayed ratings; media agencies innocently cried for a network response. At first, it seemed like the major content providers were in seriously rough waters.
With the boring, 30 year old upfront only a week away, one might argue that it’s the media agencies who should be really concerned. Marketers use media buying agencies because they can supposedly leverage the buying power and clout of all clients together. But really, the only thing that happens during the upfront is the negotiation of percentage increases, regardless of how much money an agency has. Big help. In a fantastic article last week, AdAge writer Matthew Creamer questions the true value of a media buying agency.
Moreover, the major networks will have a much easier time adapting to technological change because their content is king wherever it may be. For example, MTV can simulcast its most popular progamming online, via cellphone, or on the television. “Pimp My Ride” will be the same show wherever it is viewed. While broadband may not be the universally preferred viewing vessel in 2006, MTV doesn’t really have to worry – the network will be able to put it’s content wherever people want it.
On the other hand, large media agencies are silo-ed and set up to only deal with traditional forms of media. The real challenge will be the restructuring of the company – especially for media buying and planning. The allure and selling point for media agencies will likely shift from buying power to placement – or rather, given the growing number of media outlets, which agency will plan and buy the best content.
One thing is for certain, television as we know is around for a while and with it, unfortunately, the upfront. Until more people become adapters of technology (DVR’s, searchable online video, and mobile video), the upfront model will remain. The only exception to this may be MTV because they own the 12-34 demographic. Furthermore, they have made new media and digital content a priority and lucky for them, their viewers are the early adopters and therefore the group most likely to embrace new means.
Related Articles:
http://www.marketing.fm/2006/04/10/2007-television-upfront-cliches-engagement-emerging-media/
http://www.marketing.fm/2006/04/24/would-you-invest-in-the-upfront-today/
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May 11, 2006
Advertising Agency, Marketing.fm