TV advertisers want new rights to pull out of ad deals

Digiday 28 May 2020 04:01
May 28, 2020 by Tim Peterson

Uncertainty rolls downhill.

Advertisers have been asking TV networks for more flexibility as they deal with the coronavirus crisis. In the next round of upfront negotiations, that means ad buyers will be asking the networks to put that flexibility in writing, including the greater ability to wriggle out of ad commitments.

Advertisers will focus on three main categories of options in their upcoming upfront deals, according to agency executives. They want the option to cancel their quarterly spending commitments closer to when the quarter begins. They want the option to cancel a higher share of the budget they have committed. And they want the option to reverse course by gaining so-called “expansion rights” that would allow advertisers to buy more inventory from a network during a given quarter but at their upfront prices.

Agency executives expect advertisers will need to make concessions in exchange for networks providing the increased flexibility, such as having to pay higher rates for shorter cancelation windows.

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Interactive Advertising Bureau
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