Madison Avenue might be falling out of love with television.
Variety reported Friday on leaks form the Upfronts ad sales negotiations that advertisers are pushing the networks to go with a lower bump in CPM rates than previous years. Television has long been the medium viewed as the best bang for the buck by advertisers, but the push for lower CPM rates indicates that Madison Avenue’s eyes may be wandering to newer digital pastures.
According to the magazine’s Brian Steinberg, “the networks now find themselves having to balance their need for ad revenue with their sponsors’ interest in testing new frontiers.”
Rates of CPM increase have slowed overall in previous years, according to Steinberg, which would seem to indicate that advertisers are controlling the conversation at the negotiating table.
No big buys have been announced yet, but it looks like Fox might be ready to sign some deals, with a few of the big cable companies close behind.
Read More: Variety
Brief Take: The leaks from the Upfronts sales negotiations seem to indicate that traditional television, long the preferred medium for reaching consumers, might be losing some of its appeal for Madison Avenue.
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