As cable and broadcast try to woo advertisers for the coming season, they may find themselves in a pickle: if they ask for price increases that are too high, ad dollars might shift online; if they don't get the prices they want, they won't see growth. Moreover, writes the Wall Street Journal (subscription), many major advertisers, including U.S. carmakers and some pharmaceutical firms, are expected to be more conservative on adspend.
So, all signs point to a soft upfront ad market for both broadcast and cable TV, although cable is expected to be up 10 percent - still less than last year's 17 percent upfront growth - while broadcast upfront is expected to be flat.
Although for several years cable has been drawing away ad dollars from broadcast, many advertisers are now considering moving their money away from TV entirely - and toward the internet and other media where effectiveness is more easily measurable, WSJ writes.