Canadian Ad Insider

Profectio - What should brands look out for?

Bruce - The Upfronts are becoming less of a spending frenzy and deal making pressure cooker. My preference would be an upfront that is a celebration of new content and the sharing of new, innovative formats, data, targeting and ideas. However, “If TV’s upfront week used to be defined by spectacle — a parade of stars and musical performances culminating in glamorous parties with open bars and lobster canapés — to say the 2023 installment was muted would be an understatement.” Hollywood Reporter.

Profectio - What factors will have an impact on the 2023 Upfronts?

Bruce - The factors mitigating spending and excitement during the “upfronts” include:

1. economic uncertainty and the desire for more agility and flexibility by advertisers and agencies
2. the ebb and flow of audiences from Linear TV to Connected TV to ad supported streaming services to FAST services and back again
3. the measurement issues with respect to #2
4. the Social video alternatives represented by TikTok, Youtube
5. client concern around transparency with Big deals – who benefits? Are you customizing to my audience, my KPI’s? What flexibility do I have?
6. The writers strike and the potential impact on post Fall series in particular

Media Sellers that demand high costs per thousand (CPMs) during this year’s upfronts or, are aggressive with CPM increases, are out of touch with client/agency environment/conversations.

Profectio - Will the current writer's strike impact the Upfronts?

Bruce - In years past, broadcast networks would make a big show of unveiling their full Fall schedules day by day.  However, those days are largely over (especially this year as the writers strike means an uncertain schedule for the time being) and that was reflected at the U.S. upfronts as none drew any attention to their exact Fall lineups.  Many had little in the way of commitments and instead, most dedicated time to their streaming capabilities, news and sports. Reality programming also loomed large as networks, particularly ABC and NBC, seem to double down on unscripted series to try and make their programming strike-proof.

What year is this? A new Matlock! Night Court, Quantum Leap. Stars such as Jon Cryer, John Hamm, David Spade, the Wayans.

• Some interesting programmes to watch include:
  • Jon Cryer’s new comedy, Extended Family, a multi-cam show about family dynamics following a divorce
  • Doc, a medical drama which follows a doctor recovering from a brain injury
  • Police Drama ‘Found’ moves into NBC’s Thursday line up (replaces Law & Order: Organized Crime which moves to mid-season)
  • The Golden Bachelor which extends the popular franchise to the ‘older’ generation

The Canadian broadcasters will unveil their schedules including new Canadian shows, via events happening between June 1^st and June 8^th. It is good to see both Bell and Corus holding live events and celebrating stars, shows, and Canadian content (which may see more U.S. pick-up if writers strike is extended).

Profectio -  What's going on at Netflix these days?

Bruce - Previously, Netflix only offered basic targeting capabilities based on standard information like age, gender, and location. Netflix confirmed that they are adding the ability to target ads to users based on content they’re watching and by “first impression,” guaranteeing the first ad that a user will see in a viewing session.

Netflix will allow advertisers to buy inventory per its Top 10 list, boasting the daily updated list as a unique service that only Netflix can offer. Its new content-based placements allow advertisers to choose from eight basic categories including “anime” and “comedy,” meaning placement isn’t as specific as some may want.

While these new targeting options are promising, since Netflix already charges industry-high CPM’s of $65 for advertising, it will no doubt charge even more to run alongside hits like “Stranger Things.”

The minimum spend for a Canadian advertiser is $10,000 a month. Note Netflix continues to frequency cap at 1 x a day, 3x per week for any one commercial.

They are attracting a younger audience for the ad supported tier as 72% of their ad supported tier is A1849 and 25% of their new signups are choosing ad supported. In the upfronts, Netflix switched from a live event to virtual and then loaded up its virtual presentation with new footage from upcoming projects like The Three-Body Problem and the Squid Game competition series and had the best sizzle reel (maybe next to Disney).

Profectio -  What's going on at YouTube these days?

Bruce - YouTube videos /content is now viewed over 50% of the time on the large home smart TV and they showcased several new features to capitalize on this:

1. 30-second unskippable ads on connected TVs, offering a platform for richer storytelling and removing the need for shorter, platform-specific content.
2. “Pause” ads, which will allow advertisers to showcase their brands when a video is paused on connected TV, optimizing ad visibility during natural viewing breaks.

Profectio -  Final thoughts?

Bruce - An underwhelming array of new shows reconfirms that investing on returning top rated programmes, Sports and News is still a winning strategy- as is taking a “Total TV” approach. We see dollars shifting to invest a larger share in  Connected TV, Ad supported streaming services, FAST services, AVOD and Youtube.

From a buyers perspective, if you know TV/Connected TV will be in your fall plans, crafting  custom strategies and audience plans by client and buying early will still capture the audience/shows/time periods you want at the best price.