The TV advertising market seems to be off to a fast start.
Media buyers have let some of the networks know what they want to buy earlier than usual and some deals have already been struck.
Normally there is a lull between the time the networks finish their presentations and when media buyers submit their budgets--the first step in the negotiating process.
This year, the Memorial Day holiday was earlier than usual and media buyers, aware that the market was likely to be strong for a fourth year in a row, were ready to do business this week.
In addition to a tightening supply of ratings points as traditional viewership declines, there is additional pressure on the demand side as new direct-to-consumer brands start to buy television advertising in the upfront market, as opposed to scatter or through direct response channels.
Those DTC advertisers are armed with data that helps them pinpoint what networks, dayparts and shows they want to buy. And in return for paying higher prices in the upfront, they’re seeking stringent guarantees from the networks in terms of what audiences they’ll deliver.
That dynamic could put a squeeze on traditional advertisers. But those traditional advertisers are also adapting to a new media landscape, and are talking to the networks about being able to buy a broader range of inventory, including digital and streaming.
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.