Despite buzz, network execs shy away on upfront news

New York City was overflowing with network executives, ad buyers and entertainment elite last week, all looking to grab a piece of the $65 billion pie that is television. The “upfronts” are a pivotal moment for the industry-an annual shopping spree for advertisers looking to pick up commercial time.
The big four networks-ABC, CBS, NBC and Fox-are in a difficult position this year, as primetime ratings are slumping across the board. Total primetime viewers are down 13% for ABC, 11% for NBC and 7% for CBS this year, according to Nielsen. As ratings decline, so do profits.
Mobile, among others, was the topic du jour at this year’s upfronts. Virtually every network, including newcomers such as Yahoo Inc. and AOL L.L.C., played up the potential for growth in the digital realm, including the third screen.
In the overall scheme of things, digital ad sales will unlikely account for much more than 1% of the $65 billion pie this year. Some industry estimates put the figure as high as $1 billion, but many push it closer to $700 million for the year.
That’s not killing the buzz of mobile and other digital platforms, however. Despite the relatively low number of Internet and mobile TV viewers, the industry is beginning to trumpet the potential of digital and mobile TV, whereas just three years ago it was rarely, if ever, discussed publicly.
For example, movie studios spent about $100 million promoting their films on the Internet last year, compared with $1.8 billion it spent on broadcast TV, according to TNS Media Intelligence. Nonetheless, year-to-year Internet spending by film studios increased 61%, while network TV spend increased only 2%.
While the traditional 30-second spot still reigns supreme, and will likely continue to for many years to come, networks are beginning to sell their digital offerings to ad agencies as multi-platform packages. The lack of mobile and online viewers is reflected in the shortage of digital specialists working at ad agencies, but there is also a shortage of such talent. Traditional broadcast buyers are being transitioned into buyers of all forms of video while many agencies are educating themselves about the new distribution channels and eyeing ways to integrate their digital and traditional arms.
Some of the networks that stood out at the upfronts in this regard provided ad buyers with key details about the exclusive content they plan to bring to mobile and online environments.
NBC, for example, announced expansions to what it calls a “360” approach to its shows. The network will be launching new Web- and mobile-exclusive offerings to complement most of its shows, while it plans to provide more interactive mobile content through its WAP site, it said. Among other things, NBC will host virtual tours of every show set and give fans a peak at the production process of their favorite shows.
“We are fortunate to be working with some incredibly talented executive producers who share a common goal with us-to give the fans the best possible entertainment experience that continues after the broadcast ends,” NBC President Jeff Gaspin said. “Through these innovative collaborations, we are allowing our users to interact with their favorite shows on a deeper level, and are providing full immersion in our content.”
Despite the heavy buzz each touted about its mobile and digital offerings, all of the major networks declined numerous requests to talk with RCR Wireless News about the role mobile played in the upfronts throughout the week-long extravaganza.