US Upfronts Outpace Even Most Bullish Expectations, Says Myers

“The broadcast networks have regained virtually all of the sales they lost in last year’s upfront, which represented the industry’s worst ever year-to-year decline, and the final 2002 upfront revenue tally could surpass 2000’s record-setting $8 billion level,” says Jack Myers in today’s Myers Report on the US upfront advertising markets.
“Media buying organisations and their clients are conducting a post-mortem to better understand the dynamics that led them to so dramatically underestimate the size of the market and the costs they would need to pay. The three-day feeding frenzy resulted in average broadcast network cost per thousand (CPM) gains of 8 to 10%, compared to pre-upfront estimates of 2 to 5% increases,” says Myers’ report.
The US networks have offered more of their inventory in this season’s upfront sales period and it has been all but snapped up by advertisers. NBC, for example, saw its upfront reach $2.7 billion, more than double 2001’s $800 million (see US Upfronts Indicate Recovering Market).
US National Television Upfront Sales 1999 – 2002 ($ billions) | ||||
1999/00 | 2000/01 | 2001/02 | 2002/03 | |
Broadcast Networks | $7.2 | $8.0 | $6.9 | $8.0 |
Cable Networks | $3.7 | $4.8 | $4.0 | $4.6 |
Syndication | $1.6 | $2.1 | $1.7 | $2.0 |
TOTAL | $12.5 | $14.9 | $12.6 | $14.6 |
Source: Jack Myers Report, June 2002 |