It’s that time of year again — the Upfronts and NewFronts are upon us! As the media landscape becomes more complex and the line blurs between CTV, linear and digital, this year is shaping up to be one to watch.
As we head into the 2023 Upfronts and NewFronts season, we took a walk down memory lane to break down last year’s hot topics and set the stage for what to expect this year. Without further ado, here are the top takeaways from last year as well as what everyone will be talking about this year:
2022 Recap:
The Future of Measurement and the Rise of Alternative Currencies:
In 2022, talk of alternative currencies was all the rage as Nielsen ratings began to crumble and the industry started experimenting with alternative currencies. Going into this year’s Upfronts/NewFronts, Nielsen is still in the game but the industry has presented several options for alternative currencies, such as the Advertising Research Foundation (ARF) calling for “TV-accessible households” as the modern source of TV measurement in March 2023. With so many hats in the ring, the modern-day measurement solution is still largely anyone’s to guess.
Streaming Takes Center Stage:
In 2022, advertisers spent more than 50 percent of their budgets on streaming, marking a big jump from as little as 10 percent of ad budgets spent on streaming in 2019. This presents a new challenge for advertisers, who are struggling to effectively reach fragmented CTV audiences and keep up with their shifting viewership preferences. Fast-forward to this year and the Warner Bros. Discovery merger speaks to how media giants are still trying to address changing viewership habits, growing subscription churn and widening fragmentation.
The Economy’s Influence:
Recessionary fears were an underlying concern for buyers last year, given supply chain issues and skyrocketing inflation. In 2023, budgets are still tight amid lingering economic uncertainty and will likely affect how buyers approach this year’s Upfronts/NewFronts. While 51% of advertisers increased their upfront spending in 2022, only 27% intend to increase their spending in 2023, according to Advertiser Perceptions’ survey. This year, flexibility could be a make-or-break factor in negotiations as buyers try to navigate shaky business conditions and dynamic consumer needs.
Top Priorities for 2023:
Measurement Solutions Made for Today:
In 2023, measurement is poised to re-enter the conversation as the industry experiments with new alternative currency solutions that provide more valuable insights into audience behavior today. Some buyers are dropping traditional measurement methodologies entirely this year (like Warner Bros. Discovery and Disney), while others are remaining true to Nielsen as the industry standard.
Nielsen isn’t going down without a fight with a recently re-instated MRC accreditation, its own delayed cross-platform solution, Nielsen One still in the works, and no plans to retire its C3 currency until the fall of 2024. With more options on the table, it’s getting harder for any one option to gain enough steam to take Nielson’s place. While we’re getting closer to seeing what the next phase of measurement could look like, we’re not quite there yet.
Linear, CTV and Digital Convergence:
As the media landscape evolves, CTV continues to be an exciting tool for advertisers to reach target audiences where they are. According to the 2023 Annual Streaming Media Report, ninety-three percent of American adults now access streaming video platforms, which shows how much the space continues to grow. But with streamers also facing high subscription churn rates, (more than one in four streamers plans to cancel at least one of their subscriptions this year), advertisers are paying more attention to viewers toggling between various forms of streaming and linear TV as well. As more consumers stack cords and the line blurs between linear, CTV and digital, advertising strategies are shifting toward a more convergent approach in order to maximize reach.
The Key Role of First-Party Data in Driving Results:
Advertisers are already feeling the impact of new privacy regulations and the deprecation of third-party cookies, which is why they are honing their new strategies on first-party data and contextual audience-targeted solutions. Advertisers can use tools like data clean rooms to match first-party data securely without sharing identifiable information, which will be critical in a cookieless future. For example, Disney’s data clean room solution, which was announced back in 2021, has already been adopted by every major holding company, including Dentsu, Horizon, IPG Mediabrands, OMG and Publicis, while over 70 advertisers have also utilized it in planning, buying and measuring advertising with Disney.
We know one thing for sure – the industry certainly has a lot to buzz as we close in on this year’s Upfronts and NewFronts. We’ll be watching to see what happens next as advertisers, publishers and programmers work together to meet the moment and move the industry forward.
- Alexandra Morrison, Senior Account Executive
