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Memo From the Ultimate Upfront Market-Watcher

Spark SMG's John Muszynski suggests keeping an eye on digital and audience estimates 5/13/2013 11:15:46 AM Eastern

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Media buyer John Muszynski, a 2011 B&C Hall of
Fame inductee, said he is looking forward to upfront week. Among other reasons,
he is excited to see if the programming the networks plan to add to their
schedules will push the ratings needle forward. "Really, the only way to
save this whole situation and start changing the conversation we're having is
if the broadcast networks hit on some really strong shows and they start
bringing the viewers back," said Muszynski, chief investment officer for
Spark SMG. But Muszynski, who has years of upfronts under his belt, cautions
that everyone would be wise to keep an eye on several other aspects of the
market as well.

Digital really matters: "We're seeing more and
more money move from traditional television to digital video," Muszynski
said. How much? "There were certain agencies, I know SMG was one of them,
we moved a fair amount of money [to digital] and networks felt the movement of
that money," he said. Some dollars are going to the big media companies
and the networks' full-episode players. "But that's not really where the
bulk of the volume is going," Muszynski adds. "The bulk is going to
other places, whether that's the major portals or in short form." The
spending shift is not intended to send some sort of message to the networks or
a gambit to moderate price increases. "This is about following the
consumer," he said. "They're ahead of us in a lot of cases in terms
of their acceptance of new technology. So we've got to be able to anticipate
and aggressively follow them and hopefully even get out ahead of them. And
that's why [Spark SMG has] invested so heavily into technology and doing
research and buying data and looking at all the different innovative
opportunities that exist out there."

Lots of second-screen talk: "I think a lot of
people will be talking about second-screen and enhancements to the
experience," Muszynski said. "We're way out ahead of that. We've been
doing exhaustive research on second-screen and we've been doing cross-platform
deals for years. I think you're going to hear more people touting that stuff,
and that they finally can do it and they can measure it. There's going to be a
lot of that conversation. I don't think that's going to have a big impact on
the market, though."

Beware the audience estimates: With ratings down again this season for the
broadcast networks, "the biggest ‘watch out' goes to buyers who aren't
paying real close attention to the ratings estimates," Muszynski said.
"Because the networks might feel that the only way they can make it is if
they jack up and inflate their ratings estimate and just hope to God that these
shows take off. Well, when they don't, the advertiser's sitting there with
missing their point goals, erratic delivery [done] not according to plan, and
the quality of inventory you're getting back in exchange is generally not as
good as what you initially bought. So one of the things we'll be watching out
very carefully for is their rating estimates vs. ours. We always look at that.
But I'm anticipating this is going to be a year where they're really going to
jack around with that."

 

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