2017 Broadcast Upfronts 05/18/17

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TURNER is reimagining advertising to simplify your world and deliver solutions that work.
Creating experiences that matter.  Content that drives innovation. 
Technology that ignites fandom. 
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CynopsisMEDIA Presents:
2017 Broadcast Upfronts
Cathy Applefeld Olson
They may battle it out on a daily basis for ratings, but the broadcast networks this season are united in their efforts to tarnish the shiny magnet of advertising in socially driven digital environments they say fall short on delivering measurable reach and engagement.
In her Upfront address, NBCUniversal chairman of ad sales and client partnerships Linda Yaccarino noted premium video delivers four times as much audience engagement as paid social media. She talked up the company’s ability to deliver “scale that’s smart,” and quipped, “What the hell is a view anyway?”
Similarly, Fox Network Group’s head of ad revenue Joe Marchese did the math for his audience, displaying a stream of graphs to hammer home his point: “They say every night is a premiere on Facebook… but on any given Tuesday, Fox delivers 700 Facebooks.”

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in our premium environments.

Measured Approaches
By all accounts, audience measurement still is not where the purveyors of premium video content would like it to be.
“We want to be able to make sure we are accurately capturing every impression and giving it value as part of a deal. The audience that gets extended through time-shifted viewing has really become an important piece of how clients look to buy us across platforms,” Rita Ferro, president of ad sales at the Disney ABC Television Group, tells Cynopsis. “We’re making progress, but there’s work to be done.” Currently 15-20% of Disney-ABC content viewing occurs in a non-linear environment, she says.
The lag has given rise to a variety of stop-gap solutions. Fox, Turner and Viacom recently joined forces to launch Open AP, a digital platform advertisers can use to customize data sets to create ad-targeting criteria across multiple TV buys. Meanwhile, NBC and Fox both struck deals to use video measurement tool Video Quality Scores from digital advertising analytics company Moat, which will tally video across all on-demand viewing environments. The two companies also are working to bring Moat measurement to linear viewing.
“The key thing for us is to make our products available on as many platforms as we can and monetize it,” Bruce Leftkowitz, Fox EVP of ad sales, tells Cynopsis. Noting today 30 percent of Fox viewing is in the nonlinear environment, he adds, “Perfect world, the ad dollars follow the audience and 30 percent of our revenue should be nonlinear. We’re not there yet but every year the advertisers continue to follow the audience.”
Leftkowitz adds, “What Open AP does is homogenize the information, so everyone is the same. It makes it easier for comparison. That, and to be able to do it at scale with not just one vendor doing it alone, is a great advantage.”
“At this point, the advertising industry has not yet sufficiently caught up with the new ways people are consuming content,” CBS chief Les Moonves said during the company’s recent earnings call. “In last year’s upfront, we pushed to get over 50 percent of our ad sales done in C7, which was a very important step. This year, we expect that almost every deal will be C7…. Across the board, monetizing our total viewership is a top priority for us.”
“There’s no doubt digital provides some differentiated audiences; it’s an additive audience, but we want to make sure they have a brand-safe environment,” says Mark Marshall, EVP of entertainment advertising sales at NBCU. “So instead of starting with a digital platform and letting an algorithm lead you to where you’re going to end up, why not start with our content and let the content lead you to the platform. The programming is driving you where you want to integrate your brand.”
Marshall says the concept has been favorably greeted in early meetings. “Time will tell as we get into the Upfront, but it’s gotten a very positive early response in terms of agencies and clients feeling very safe in the environment they are choosing.”
“Interest in digital always feels on the rise,” says Matt Borchard, media director at Noble People, a creative media agency whose clients include Honest Tea and shave products company Harry’s. But there can be a catch, he notes. “The out of pocket cost for digital is lower than for traditional TV. But the CPMs typically aren’t—especially when you factor in viewability fraud, skipping, etc. So brands can align with the premium content from networks but not pay the cost of running on linear. The reality is that the audiences on digital platforms are vastly smaller than linear and frequency can get to the point of annoying without controls.”
Content that drives innovation. Creating experiences that matter. Fan engagement.
TURNER is reimagining advertising to simplify your world and deliver solutions across all platforms and screens.
The Rise of Precision Targeting
Commensurate with tracking audiences across platforms is the rise in ability to drill down on viewer metrics beyond the age-gender delineations the industry has depended on for decades.
“Right now the ad sales business focuses on rate of change—what’s the CPM this year compared to last year? What’s far more important is the effectiveness of the ad,” Fox’s Leftkowitz says. “We’ve always lived in this world where 18-49 is a proxy for something else. Now it’s gotten to the point where if you’re looking for left-handed, red-haired women who are looking to buy a new car, you can get that granularity and be able to compare it. This is ultimately going to change the business.”
NBC’s Marshall says the conversation is shifting to, “How do we talk differently about not just the ratings? And for us the goal is simple. We are putting skin in the game. We are confident with our premium content and its ability to move clients’ business forward. We will deliver on metrics outside of age and gender.”
Still, some advertisers caution against an overzealous embrace of precision metrics. “Everyone wants to do more precision targeting but the reality is that there are dangers in over-targeting,” says Noble’s Borchard. “Too much targeting and you might end up speaking to people who were going to buy you anyway, probably at a higher cost. There always need to be two parts of a marketing effort. One that casts a wide net to create a large pool of potential customers, and one that zeros in on specific people and audience.”
“The whole notion of significantly targeting special audiences within an audiences is becoming more important,” Ferro says. “We still do a lot of great brand marketing around the traditional audiences, but there’s no question Disney Media continues to evaluate the opportunity to continue to drive more business and how to set ourselves up to be able to deliver to clients.”

Powerful storytelling. Trusted environments. Unparalleled ad capabilities that drive results. 
Groundbreaking partnerships. Fans at the center.
TURNER is reimagining advertising to simplify your world and deliver solutions that allow:
Content to drive innovation.  Technology to ignite fandom.  Creating experiences that matter.
TBS | TNT | truTV | CNN | HLN | Adult Swim | Cartoon Network | Boomerang | Turner Sports
A More Perfect Union
With brand safety top of mind, another trend this year among the broadcast nets is an even deeper integration of messaging within a specific piece of content, across sister properties and in some cases extending beyond screens.
Univision, which is corralling its content around viewer passion points, is also focused on integrated messaging across its assets, Keith Turner, president of ad sales and marketing, tells Cynopsis. “We’re better coordinated on content than we’ve ever been,” he says, noting 70 percent of the network’s audience watches solely Univision.
“It feels like a big year for integration,” NBC’s Marshall says. “Data is a very big part of it, of course, but everyone is seeing that data will get you to a certain point. You also want to engage consumers and trigger their emotions and have your brand as close to that point as possible.”
Ferro says Disney ABC is working with select large-scale clients to foster deep engagement experiences on video platforms as well as across the likes of retail outlets and theme parks. For example, Nissan last year tied in with Disney’s Star Wars film Rogue One in an activation that packed live experiences, publicity on shows including ABC’s Good Morning America and other IP extensions, and is looking to do something similar this year, she says. “This is bigger than a media-based opportunity. It’s, How do we take all the assets of the Walt Disney Co. and take advantage of building opportunities that are promotional in nature?”
The promise of deeper engagement will be key to the sell this year. The biggest challenge for the networks “is to prove to buyers that we should pay more for declining audiences,” says Aaron Perlstein, broadcast director at Noble People. “The big opportunities will be finding the new ways networks are monetizing their content and being first to market with them. Branded content will continue to become a larger piece of the revenue stream. The best opportunities will combine the full portfolios of linear, digital, content, and talent.”
Cynopsis Ad Sales
Mike Farina | 203-218-6480
VP, Sales
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