Advertisers Unimpressed By Big Apple TV Bonanza

The leading American TV networks are failing to wow the advertisers, in the traditional parade of up-and-coming programmes set to be shown in the lucrative autumn and winter schedules.

Currently taking place in New York, the ‘upfronts’ are a catwalk for the TV industry, with channels showcasing their schedules in an attempt to woo a spending commitment from advertisers.

But this year, in a spend-fest that usually nets $9 billion (£5 billion) for the networks, advertisers are looking away from the traditional schedules to other advertising platforms such as the internet. They are also concerned that the growth of digital recorders means viewers will be able to skip those expensive ad slots.

It’s a nervous time for the traditionally mighty networks, with advertisers wielding their new-found power and many large companies including Coca-Cola sitting tight, and refusing to pledge money and book ad slots.

This growth in options for advertisers means the traditional networks will have to work harder to persuade advertisers to part with their cash. And it is a situation that UK channels will be watching with interest as our own TV-ad industry flags.

Some US networks have taken the internet challenge seriously. The troubled station NBC is to launch two internet channels including one that will premiere the US version of The Office before it hits terrestrial TV.

But others, including top dog CBS, have dismissed the web challenge.

So who’s right? Analyst Merrill Lynch said ad revenue would actually be unchanged this year, with only NBC – dogged by low ratings- seeing a fall in commitments. However, the Merrill Lynch report added ‘new media offerings from traditional broadcasters are clearly going to play a much larger role in the selling process and could allow them to protect their share of advertising moving forward’. Which could mean NBC are on the right track.

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