Ad Buyers to TV: You Keep Raising Rates, We Quit Buying Ads


Ad Buyers to TV: You Keep Raising Rates, We Quit Buying Ads

Dave Campanelli isn t playing your game anymore, television executives.

As we head into the biggest week of the year for TV ad sales, Campanelli, one of the major players in the business of buying spots for advertisers, says his clients are are fed up with paying huge year-over-year pricing increases, whether ratings are up or down.

Campanelli, director of national TV at Horizon Media, noted that broadcasts networks handed an unsettling 10 percent price-hike to advertisers last year for the privilege of airing commercials during their primetime shows even though DVRs and streaming have disrupted the way consumers get their entertainment at home, driving commercial ratings down.

The negotiations will begin in earnest at TV upfront presentations to advertisers this coming week, where folks like Campanelli will be looking for deals. Should networks hike prices again this year, advertisers could blow through their budgets pretty prematurely or find somewhere else to advertise.

How many years can advertisers pay 10 percent over 10 percent over 10 percent and just keep buying TV? Campanelli asked rhetorically, of course, because he had the answer. You re going to scare people away from the medium altogether, and it s not like there aren t big places to go spend your money in the digital world.

Campanelli may be playing a little chicken, hoping broadcasters will blink before advertisers do. But he s not wrong.

In case you haven t flipped your calendar over in a while, this is 2017, and there are options. Though television as your parents knew it still has what Campanelli qualified as a relative efficiency compared to other media, the gap is slimming.

And on digital the alternative that many of Horizon s clients are beginning to look at more closely there s less resistance to lowering prices. Digital networks have far more advertising hours available, since the Internet is endless. So they re still mostly just looking to grab more volume or overall dollars. That approach makes actual price-per-thousand impressions (CPM) less of an issue, and thus, more of a bargain.

Everybody loves a deal.

We ll find out in the coming months where pricing for 2017-2018 ends up, and where advertisers ad dollars go.

Here s the remaining TV upfronts calendar:
NBC: Monday, May 15 (morning)
Fox: Monday, May 15 (afternoon)
ESPN: Tuesday, May 16 (morning)
Univision: Tuesday, May 16 (late morning)
ABC: Tuesday, May 16 (afternoon)
Turner: Wednesday, May 17 (morning)
CBS: Wednesday, May 17 (afternoon)
The CW: Thursday, May 18 (morning)

Katherine Heigl, Rob Lowe and 10 More Winners and Losers in New Fall TV Schedule (Photos)

Click through to see who won and who lost in TV’s biggest week.

Winner: Katherine Heigl

The star has had a rocky time since leaving “Grey’s Anatomy.” Her spy drama “State of Affairs” got canceled last year by NBC after just one season. But now CBS is ready to bring her back in the legal drama “Doubt.”

Loser: Kermit the Frog

It’s not easy bein’ a 1970s pop culture staple. ABC tried to freshen Kermit and “The Muppets” for a 21st century audience. But viewers just never came around.

Winner: Laverne Cox

With “Orange Is the New Black,” she was the first trans person ever nominated for an acting Emmy. Now she’s got the lead in Fox’s remake of “The Rocky Horror Picture Show.”

The former Brat Packer has remade himself as a middle-aged comedy star, thanks in large part to his scene-stealing on “Parks and Recreation.” But it didn’t work on Fox’s “The Grinder,” which was canceled despite great reviews.

Loser: Patricia Arquette

The former “Medium” star headlined CBS’ “CSI: Cyber,” which turned out to be a rare “CSI: Fail.” The forensics drama was canceled after just two seasons.

Winner: Jerrod Carmichael

The force behind NBC’s topical sitcom “The Carmichael Show” won a crucial renewal for a third season.

Loser: Connie Britton

The former “Friday Night Lights” star is a free agent again after ABC finally canceled her country-music soap “Nashville.”

Winner: Ken Jeong

There aren’t many shows more hated by the critics than “Dr. Ken,” the ABC sitcom based on Jeong’s own experiences as a doctor. But Jeong got the last laugh – and a season 2 renewal.

Loser: Bill Lawrence

Ouch. The “Scrubs” creator had not just one but two series canceled this month: CBS’ “Rush Hour” and NBC’s “Undateable.”

Winner: Kiefer Sutherland

The former “24” star has perhaps the most-talked-about new show of the year. In ABC’s thriller “Designated Survivor” he plays a Cabinet secretary suddenly vaulted into the White House after a terrorist attack.

Winner: Greg Berlanti

Now that “Supergirl” is moving to The CW, super-producer Berlanti will control 40 percent of the network’s programming.

Winner: Kevin James

“The King of Queens” is back. CBS has ordered a new sitcom with the oversize star, “Kevin Can Wait.”

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It s been a memorable TV upfront week for Kevin James and Laverne Cox; maybe not so much for Connie Britton and Kermit the Frog

Click through to see who won and who lost in TV’s biggest week.

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