According to AdAge, America Online has withdrawn it’s $2oo million annual budget from the Television Upfront, undoing any negotiations that have already taken place. This is yet another blow to the antiquated, pro-network buying season that takes place in June-July. AOL will join the sidelines with other abstinents Proctor and Gamble and Coca Cola.
The decision to bail out is likely due to AOL’s fledgling profitability and therefore, less flexible marketing budget. In their defense, what company would want to legally commit a large portion of an annual marketing budget upfront? More and more advertisers are beginning to reject the awkward timing of the Upfront which tends to unilaterally benefit the broadcast content providers. While this move may seem hypocritical coming from a Time Warner property, it remains a significant blow to the system.
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July 5, 2006
Advertising, Marketing.fm, Television