Advertisers will increase their upfront spending by 7.6% this year to nearly $19.9 billion.
As Modus Direct participated in the Network Upfronts last week, there were some key takeaways.
PRIMETIME IS ANYTIME. More focus this year on the network portfolios than primetime programming – head of sales for WarnerMedia stating “IP is the new Primetime”
DIVERSITY AND INCLUSION. All major networks focused on the importance of diverse casts, storytellers, producers as well as all inclusive themes in programming. We are seeing this as a theme across client creative as well.
Media companies are no longer in the business of selling TV commercials. They are in the audience delivery business.
91.6 million people watched the Super Bowl on CBS linear while only 5.7 million streamed.
Linear provides audience delivery volume at a lower cost. CTV/OTT offers unparalleled targeting at a higher cost. Combined they provide optimal reach and ROI.
OTT / CTV can efficiently expand your campaign television reach. We always recommend a balanced scorecard while allowing the performance to inform the spend distribution.
Inform consumer and network targets
We have utilized OTT/CTV to inform larger Hispanic targeting initiatives leading to linear TV network additions to include Hispanic targeted networks.
Some networks are more risky to test in a traditional linear environment (such as HGTV or Discovery Prime) but may produce the best results via OTT/CTV. This learning allows us to add networks to linear plans with more confidence and less risk for our clients.
78 million U.S. households maintained a cable subscription at the start of 2021. At the same time, advertisers could reach more than 84 million households via connected, streaming TV services for the first time. And, according to The Trade Desk, and all of us in this business – this trend is not likely to reverse.
OTT / CTV outpaced all other media in 2020 (which is not a surprise to anyone) and the projected cord cutting for 35+ in 2021 is something that can not be ignored.
That being said, campaigns targeting 65+ DTC products and services outperformed linear TV in some cases. This is a huge finding for companies targeting 65+ and should be a strong consideration to augment the linear workhorse.