Programmatic TV, uprfonts new fronts

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2. WTF Upfronts/NewFronts
Table of contents
01 Introduction
02 The Upfronts: A brief history
06 The NewFronts: A briefer history
11 The Future
08 The NewFronts 2016
03 The Upfronts 2016

3. WTF Upfronts/NewFronts 01
Digital media types tend to suffer a kind of myopia: Programmatic ad serving, audience
targeting and RTB are our lingua franca, but across the aisle in TV land, direct buying is still
king. And the king’s court is the television Upfront.
That’s right, for three solid months in every city in the United States, the biggest global
advertisers converge on this programming showcase to negotiate and pledge dollar figures
so staggering that digital media just had to shave off a sliver.
And lo, the Digital Content NewFronts were born.
So if the Upfronts are for TV and the NewFronts are for digital, why do we need this guide?
Because new technologies like programmatic advertising and OTT, demanded by digital
natives, are forcing the linear TV big shots to go digital. And TV’s glamour and revenue is
luring digital media producers to television.
Keep reading and we’ll unpack which is which, who is where and whether the divide
between these two events should eventually disappear.
Introduction

4. WTF Upfronts/NewFronts 02
“Up front” buying—the purchase of commercial air-time based
on the promise of upcoming TV programming—has existed
almost as long as television itself. Networks offered advertisers
an advanced look at programming as early as the late 1940s,
when Howdy Doody, The Texaco Star Theater and the Indian
Head Test Pattern were all top-tier entertainments.
But “the Upfronts” as we know it weren’t born until 1962, when
the American Broadcasting Company shifted from a year-round
premiere schedule to a single, fall debut season, and offered
advertisers an early look via a spring showcase. NBC and CBS
followed the next year, and suddenly buyers found themselves
all jockeying at once for a limited amount of commercial airtime.
This Mad Men-era sellers’ market shifted only slightly in 1967,
when ABC again redefined the market by offering the first-ever
ratings guarantees. Advertisers could now bank on a concrete
promise of viewership with prices set accordingly and, for the
first time, they could angle for a bargain by placing their bets on
sleeper hits. Still, supply remained relatively scarce.
That all changed in the early 80s, when the broadcast networks
found themselves shoulder to shoulder with young cable
upstarts offering ever more diversified inventory and more
targeted audiences. Stay at home moms, yuppies, even kids
took on greater currency as the swelling ranks of cable networks
clammered for advertising dollars and the big three kvetched
about their “fracturing” audience.
Sound familiar? It should. There are so many broadcast, cable
and now non-linear providers that the Upfronts of 2016 span
three months and are hosted in every major US city. To get a
leg up on linear and digital competitors, networks aim to bow
buyers over with star power, trotting out their marquis players.
Last year, FOX brought in Will Forte, Kristen Schaal and January
Jones to debut their comedy, Last Man On Earth. Meanwhile, E!
had the ubiquitous Kardashians walk the stage to usher in a new
season and introduce their growing suite of reality spin-offs. All
this to support the direct buying relationships that still supply
the most TV revenue.
The Upfronts: A brief history

5. WTF Upfronts/NewFronts 03
The Upfronts 2016 Schedule
Date Network Location Time
March 2 Nickelodeon New York Afternoon
March 3 Nick@Nite/TVLand/CMT New York Afternoon
March 7–9 Disney Media Orlando Afternoon/Evening
March 8 Games Show Network New York Morning
March 15 Scripps Networks Atlanta Afternoon/Evening
March 15 National Geographic New York Morning
March 22 Scripps Networks Detroit Afternoon/Evening
March 29 Scripps Networks New York Full Day
March 30 Azteca America Los Angeles Morning
March 31 Discovery Comms. New York Morning
March 31 Comedy Central New York Afternoon/Evening
April 5 Azteca America Chicago Morning
April 6 Scripps Networks Los Angeles Afternoon/Evening
April 6 Fox Sports Media New York Evening
April 7 Simulmedia New York Afternoon
April 7 Freeform New York Evening
April 11 Bravo/E!/Oxygen New York Afternoon
April 12 Cadent Media New York Morning
April12 Azteca America New York Afternoon
April 13 Scripps Chicago Afternoon/Evening
April 18 BET Network Chicago Afternoon/Evening
April 19 Scripps Networks Minneapolis Afternoon/Evening
April 20 Crackle New York Morning
April 20 BET Network New York Evening
April 21 Azteca America Dallas
April 21 MTV New York Evening
April 26 LATV New York Evening
April 27
Outdoor/Sportsman/World
Fishing
New York Evening
May 2 - May 13
Digital Content NewFronts
May 16 NBC New York Morning
May 16 FOX New York Afternoon
May 17 ESPN New York Morning
May 17 Univision New York Late Morning
May 17 ABC New York Afternoon
May 18 Turner New York Morning
May 18 NCM New York Afternoon
May 18 Mundo Max New York Afternoon
May 18 CBS New York Afternoon
May 19 The CW New York Morning
May 19 NBCUniversal New York Afternoon
Date Network Location Time

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7. WTF Upfronts/NewFronts 05
This year’s Upfronts will be the largest yet, with agency
focused presentations beginning in early March and
spanning April and May. While the Upfronts remain a
festival of direct buying, this year’s event will be colored
by the rise of programmatic TV.
Both NBC Universal and FOX this year announced plans
to offer some of its inventory on programmatic channels
in February, ahead of this year’s upfronts. The move is a
sign of a major shift for linear broadcasters who, to date,
have only dabbled in programmatic. The International
Data Corporation, which analyzes the Telecom industry,
estimates that less than $1 billion of television inventory
is available programmatically, a drop in the $70 billion
broadcast bucket.
Programmatic has caught on with digital publishers
partly because it automates a process that once relied
on human relationships and intuition, ironically the very
bedrock of the Upfronts themselves. More importantly,
programmatic also allows digital publishers to capitalize
on something they have in spades: data.
Crafting audience segments in digital is relatively easy,
given the mountains of data publishers have on hand.
Linear broadcasters would love to tap into the same
efficiency, but the data capabilities of broadcasters
aren’t yet on par with those of digital. As data collection
technology evolves, programmatic is likely to claim a
larger share of linear inventory.
Meanwhile, linear broadcasters are working to colonize
the digital space, taking their content over-the-top
onto owned and operated platforms. As more users
adopts they platforms, the lines between digital and
linear blur. Programmatic has gained some traction
with broadcasters on both sides of the equation with its
promise of efficiency, leading some to speculate that it
might soon snatch the crown from direct buying.
“It’s interesting to see programmatic folded into the
Upfronts,” said John Sullivan, vp of platforms and
strategy at NBCUniversal. “They’re testing the waters
for something that could ultimately make the Upfronts
obsolete.”
The Upfronts 2016

8. WTF Upfronts/NewFronts 06
The Upfronts 2016
All that said, two major broadcasters announcing
that they’ll dabble in programmatic sales isn’t quite a
terminal diagnosis for the Upfronts. Though it opens
the door to change, the industry is still driven by direct
sales with an estimated $8.94 billion being exchanged
at last year’s event. Neither NBC or Fox has specified the
amount of inventory being offered programmatically, but
they also haven’t scaled back their participation in the
Upfronts.
Beyond programmatic, the 2016 Upfronts will reflect
another digital change. Time shifting audiences have
moved away from en masse viewing of regular prime
time shows. Hence, advertisers are hankering for
premium—read “live”—programming. (Which beloved
musical will NBC skewer this year? Who cares! It’s
ratings gold).
Experts predict that television advertising rates,which
have been gradually declining for over a decade, may
rise as networks respond to this demand for premium
content. Ajay Jain, senior analyst at Pivotal Research
Group, said he expects networks to seek a 5 to 10
percent increase over last year for premium inventory.
Interestingly, Hulu—the love child of broadcast giants
ABC, Fox and NBCUniversal and a prime enabler of time
shifting audiences—will present at the NewFronts. But,
other digital providers are infiltrating the Upfront lineup.
Among the pioneers crossing over are Sony-owned
streaming platform Crackle, which debuted at the
Upfronts last year. This year, NBCUniversal follows with
its own digital platforms, including newly launched
digital comedy channel SeeSo. CBS will also offer
inventory from its subscription platform, CBS Now.
As digital entertainment becomes more prominent
consumers’ lives and advertisers’ budgets, the line
between the Upfronts and NewFronts are growing hazy.

9. WTF Upfronts/NewFronts 07
It’s telling that even after eight years of NewFronts,
many in the industry still ask themselves, “Wait, the
NewFronts are a thing?” Indeed, linear-native media
buyer, they are. Starting in May, no fewer than 37
digital media companies will be pitching advertisers
with their latest multi-platform programming.
While Upfronts buyers haggle over the exact price of
universally valued inventory, NewFronts participants
are still trying to prove their value. Nine years on, the
event is only partly about haggling over price points.
Mostly, sellers are still trying to convince advertisers
that their content is on par with television.
That’s roughly what DigitasLBi had in mind when it
launched the first digital content NewFronts back
in 2008: Potential. Taking a page from broadcast
television, the digital agency conceived the
conference as an opportunity for digital producers
to pitch their slates and sell advertisers on digital
content. In borrowing from the Upfronts’ format,
digital would gain the veneer of legitimacy that would
lead to bigger paydays.
The gambit seems to have worked, at least in part.
In 2016, the NewFronts—now run by the IAB—are
no longer just a bid for attention. The annual event
has become a valuable stage for the digital media
industry to present itself to the world. The industry
hasn’t reached parity with television prices yet, but
advertisers are increasing their spend year-over year
and attendance continues to grow.
Of course the players have changed considerably.
The 2008 edition of the conference featured
headliners included Michael Eisner’s fledgling digital
studio Vuguru, the temporarily resurgent MySpace,
and Next New Networks (since acquired by video
giant YouTube.) Those sellers are all but forgotten
today, replaced by the digital native creators and old
guard entries represented on the next page.
The NewFronts: A briefer history

10. WTF Upfronts/NewFronts 08
Session 9-11am 12-2pm 3-5pm 6-8pm
March 2 New York Times Buzzfeed Bloomberg Refinery29
March 3 Maker Mode Conde AOL
March 4 Hulu Popsugar Yahoo Hearst
March 5 Time Inc. CNN DigitasLBI YouTube
March 6 Machinima Time Warner Vice Woven
March 9 NatGeo Fullscreen SheKnows Defy
March 10 Studio71 StyleHaul HealthiNation
March 11 Whistle Sports IAB NewFronts Insights Luncheon AwesomenessTV
March 12 Activision/Blizzard WebMD DailyMail/Elite Daily NowThis
March 13 Trusted Media Playboy Mashable
The NewFronts 2016 Schedule

11. WTF Upfronts/NewFronts 09
Only at the NewFronts is YouTube a grey lady and The Grey
Lady a new comer. This year’s biggest presentations are
more likely to come from digital ingenues such as Time Inc.,
Hearst, and The New York Times and new media darlings
like Buzzfeed, Refinery29, and Popsugar. The growing
power of video to drive traffic, particularly the advent of
Facebook’s fast growing video product, has pushed more
traditional and digital publishers toward making splashy
original video debuts.
Vice has pivoted to TV with the launch of its Viceland cable
channel. Buzzfeed has likewise turned to television, tapping
its growing video division, Buzzfeed Motion Pictures, to
create branded content for NBCUnviersal’s cable outlets.
Both, however, will present at the NewFronts.
“Everyone has their eye on TV,” said Stephanie
Horbaczewski President and CEO of fashion and beauty
focused digital network StyleHaul. “That’s where the money
is. We can build a bigger audience but the payouts in linear
are still bigger.”
Despite its pedigree, popular mass market OTT platform
Hulu will once again preview its upcoming slate at
the NewFronts. In a world where linear and digital are
increasingly bleeding together it seems that the ability
to sell by day-part might be one of the last points of
differentiation.
YouTube, and the cottage industry of digital studios and
multi-channel networks tit cultivated, will also be a presence
at this year’s NewFronts. However players like Fullscreen,
Maker Studios, Machinima and StyleHaul, who once
attended the NewFronts to introduce advertisers to their
new breeds of digital content and viral stars, are now the old
guard.
Recent years have seen consolidation within the MCN space
with players like Maker and Fullscreen being absorbed into
major media conglomerates (The Walt Disney Company and
AT&T/Chernin Group co-venture Otter Media respectively)
The term multi-channel network, once a buzzy designation,
has become a dirty word with most former MCNs
rebranding as “multi-platform media companies” to avoid
being tainted with the stigma of the YouTube dependent
business model.
Finally, Yahoo, which was a founding member of the
NewFronts back in 2008, will still be presenting this year
despite the high profile shuttering of its video division
late last year. The company infamously took a $47 million
writedown on its video business after an an investment in
television style content failed to pay off. Aside from pitching
advertisers on remaining inventory, it’s unclear what the
struggling web giant will be presenting when it takes the
stage in May.
The NewFronts 2016
Who will be there

12. WTF Upfronts/NewFronts 10
The NewFronts 2016
Who won’t be there
Even as the ranks of the NewFronts have continued to swell, a handful of players have soured on
the event. Founding partner Microsoft dropped the NewFronts in 2015 after shuttering its Xbox
Entertainment Studios and halting its original content efforts. Crackle, the Sony owned streaming
platform that’s home to Emmy winning programming like Jerry Seinfeld’s “Comedians In Cars
Getting Coffee,” ditched in 2015, heading for the greener pastures at the Upfronts.
As online video evolves more departures are possible. Yahoo, another founding partner of the
event, ditched its expensive and widely unsuccessful original video programming efforts late last
year but will still present at the 2016 Upfronts. Meanwhile, Hulu could easily pull a Crackle and jump
the fence to the Upfronts. The streamer has a growing roster of original TV quality content and a
broadcast pedigree as a joint venture between ABC, Fox and NBCUniversal.

13. WTF Upfronts/NewFronts 11
So what does the future hold for the vaunted Upfronts?
While programmatic is bound to make some waves this
year, it’s unlikely to overturn the boat entirely. Direct buying
is still firmly at the helm. However, as more broadcasters
and producers move to digital distribution, the distinction
between the Upfronts and NewFronts is likely to erode
further.
Why? Consumers don’t care about the linear/digital divide.
Whether they’re hefting a half-pound Time Warner issue
remote control or digging through their couch cushions for
that oh-so-slim Apple TV model, they only care about what
they’re watching. And advertisers follow eyeballs.
(The two events already wrap around each other: The
Upfronts taking a two-week break while the NewFronts roll
through New York, a tacit acknowledgement that the same
buyers attend both events.)
Broadcasters are already going Over The Top to meet
consumers where they live, trading in carriage fees for
digital ad dollars. Digital publishers too are making the
switch, launching OTT apps—a big switch from YouTube
distribution—as a showcase for the digital video that also
pulls in that coveted mobile audience.
If consumers, advertisers and broadcasters all converge, it
follows logically that the markets will too. Except that inertia
is powerful. Inventory from CBS’s OTT platform CBS Now
might find a natural home at the NewFronts, alongside NBC
Universal’s SeeSo platform. But both are sticking with the
glamour (and higher CPMs) of the Upfronts.
But a combined Upfront/NewFront future isn’t out the
question.
Said Brian Selander, evp of Whistle Sports: “It’s more and
more the same world.”
The Future