Objective & Methodology

Transcription

1 August 2007

2 Objective & Methodology Objective: The Upfront Opinion Survey, now in its third year, is a joint venture between Advertising Age and TV Guide Network. The study is designed to uncover category and media spending trends affecting the upfront season and help the market leverage emerging technologies. Methodology: Two studies were conducted in 2007: one in March at the beginning of the upfront, and the concluding survey in July. The July study results are based on 206 respondents to an online research study conducted by Advertising Age and Research Solutions, Inc.

3 Study Topics Upfront Spending Spending Allocation Shifts Online Spending Change In Network & Cable TV CPMs For Hottest Daypart & Program Genre Negotiation Ratings/Emerging Trends 2007 Trends Best Multi-Platform Advertising Campaigns Best ROI Prospects Emerging Technology Interests Shifts In Branded Entertainment or Product Placement Video Percentage of Online Advertising

4 Detailed Findings: Upfront Spending

5 Question: Thinking about Upfront , how would you say advertisers allocated their TV advertising budgets? Cable TV Broadcast TV Agency/Media Buyers Agency/Media Planners Client 60% 50% 40% 30% 20% 10% 0% 50% 38% 22% 19% 36% Advertisers allocated a BIGGER percentage of their budget than last year 42% 36% 28% 28% 27% Advertisers allocated THE SAME percentage of their budget as last year 30% 28% 22% 23% 18% 18% 13% 11% 8% 4% Advertisers allocated a SMALLER percentage of their budget than last year Not Sure

6 Question: What percentage of the advertising you bought or sold during Upfront was online? 8.0% Cable TV Broadcast TV Agency/Media Buyers Agency/Media Planners Client 7.0% 6.0% 5.0% 5.8% 5.6% 6.7% 4.0% 3.0% 2.0% 1.0% 0.0% 3.0% 3.6% Average % of Upfront Spending Dedicated To Online

7 Question: How much did network and cable TV CPMs change in Upfront ? Cable TV Broadcast TV Agency/Media Buyers Agency/Media Planners Client 5.0% 4.0% 4.0% 3.3% 3.7% 3.3% 3.4% 3.0% 2.0% 1.0% 0.0% Network TV CPM - Average Increase 5.0% 4.0% 3.0% 4.0% 2.8% 3.5% 2.9% 3.3% 2.0% 1.0% 0.0% Cable TV CPM - Average Increase

8 Question: Which daypart, other than primetime, was most in demand in Upfront ? Cable TV Broadcast TV Agency/Media Buyers Agency/Media Planners Client 60% 50% 40% 44% 46% 40% 50% 44% 52% 56% 39% 30% 31% 22% 25% 22% 20% 17% 10% 5% 8% 0% Late Evening Early Morning Daytime

9 Question: Which program genre was the hottest in Upfront season? Cable TV Broadcast TV Agency/ Media Buyers Agency/ Media Planners Client Serialized Drama Procedural Drama 28% 20% 22% 46% 11% 0% 15% 11% 4% 0% Sitcom 11% 10% 17% 4% 0% Dramedy 0% 10% 11% 17% 56% Reality Competition 6% 25% 22% 4% 0% Sports 39% 20% 17% 25% 33%

10 Question: Did you negotiate mostly on live TV ratings, live-plus same day ratings, or live pus three-day ratings? Cable TV Broadcast TV Agency/Media Buyers Agency/Media Planners Client 90% 80% 70% 71% 80% 60% 50% 40% 30% 20% 10% 0% 29% 50% 48% 45% 41% 36% 27% 23% 24% 20% 7% 0% 0% Live Ratings Live Plus Same Day Live Plus Three Day

11 Question: What is the most significant new trend that has emerged during the Upfront season? Use of commercial ratings and live plus 3 as a trading currency Willingness of the TV networks to put more of their programming online Increased demand for cable TV upfront Increased demand for network TV upfront Cable TV Broadcast TV Agency/ Media Buyers Agency/ Media Planners Client 78% 46% 64% 54% 56% 11% 14% 12% 23% 44% 11% 14% 18% 12% 0% 0% 27% 6% 0% 0%

12 Detailed Findings: 2007 Trends

13 Question: Which medium appears to have the most interesting and attractive multi-platform advertising campaigns this year? Cable TV Broadcast TV Agency/Media Buyers Agency/Media Planners Client 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 5% 71% 42% 22% 20% 90% 14% 24% 48% 56% 12% 6% 6% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 5% 21% 14% Network TV Cable TV Newspapers Magazines Outdoor Online 20% 22%

14 Question: Which medium offers the best prospects for ROI, based on conversations you ve had so far as well as what you learned at Upfront ? Cable TV Broadcast TV Agency/ Media Buyers Agency/ Media Planners Client Broadcast Networks 6% 46% 16% 10% 11% Cable Networks 63% 9% 25% 10% 22% Syndicated TV 0% 9% 3% 5% 0% Print 0% 0% 3% 10% 0% Radio 0% 0% 9% 0% 0% Online 19% 23% 22% 48% 56% Mobile Programming 0% 5% 3% 5% 0% Place-Based Media 13% 5% 13% 0% 0% Word of Mouth 0% 0% 3% 14% 11%

15 Question: Which emerging technology are you most interested in experimenting with this year? Cable TV Broadcast TV Agency/ Media Buyers Agency/ Media Planners Client Place-Based Media Mobile Advertising Cable On Demand Web On Demand User Generated Content Social Networking Sites 6% 5% 11% 12% 0% 11% 23% 11% 19% 13% 40% 0% 37% 8% 38% 11% 36% 9% 19% 13% 11% 18% 14% 27% 25% 17% 14% 17% 15% 13%

16 Question: How will advertisers investment in branded entertainment or product placement change in ? Cable TV Broadcast TV Agency/Media Buyers Agency/Media Planners Client 8.0% 7.0% 6.8% 6.0% 5.0% 5.8% 5.3% 5.4% 4.0% 3.6% 3.0% 2.0% 1.0% 0.0% Average % Investment Change In Branded Entertainment/Product Placement

17 Question: What percentage of the online advertising you buy or sell this year will be video? Cable TV Broadcast TV Agency/Media Buyers Agency/Media Planners Client 16.0% 14.0% 12.0% 10.9% 14.3% 12.5% 10.0% 8.0% 8.4% 9.2% 6.0% 4.0% 2.0% 0.0% Average % Of Online Advertising Dedicated To Video

18 August 2007