Usually, at the US TV upfronts — the annual event where the networks showcase their best upcoming programming in the hopes of securing big advertising commitments — the celebrities are the stars of the show.
But this year, retailers are set to take center stage. Or, more specifically, retailers’ increasingly valuable data.
Market research firm Emarketer (Business Insider’s sister company) predicted in May 2023 that US TV upfront spending would total $18.79 billion this year, up 0.8% year over year, after a 3.6% decline in the previous upfronts, which was clouded by the Hollywood strikes and economic uncertainty. A March 2024 survey from Advertiser Perceptions, which polls marketing executives, found that 34% of advertisers planned to increase their upfront video allocations this year.
With more money being spent, advertisers are paying closer attention to what data they can use to inform their TV ad buys and prove that TV is powering their sales. That’s where the retailers come in.
A separate Advertiser Perceptions study highlighted retail data’s newly important role. It found that taking advantage of a media company’s unique upfront data offerings, including retail data, was a top reason for advertisers to buy linear TV or connected TV in the upfronts, cited by 37%. For brands that spent more than $50 million on advertising last year, that criteria outweighed the ability to maintain the ad rates they pay this year.
“The advantage for advertisers is more granular targeting and attribution, being able to tie your advertising to whether it generated a lift,” said Eric Haggstrom, director of market intelligence at Advertiser Perceptions. “That’s a change from past years.”
Amazon stands to gain from advertisers’ retail focus
The biggest retailer of them all — Amazon — is set to make its upfronts debut this year, having launched an ad-supported tier on its Prime Video service in January. On stage at Pier 36 in New York, Amazon executives are expected to tout the big audiences reached on “Thursday Night Football,” shows like “Beast Games,” and its vast troves of consumer shopping data.
“The big topic in everyone’s conversation is Amazon,” said Dave Morgan, founder and executive chairman of the TV adtech company Simulmedia. “Prime Video has an ad load that Amazon can program because it has a ready-made ad audience. Their volume capacity is going to outstrip everyone but YouTube.”
The launch of Prime Video is expected to hugely impact the growth of retail media spending on connected TV, where advertisers target ads on streaming TV to reach their desired audiences using retail data. US retail media CTV ad spend will increase by 86.6% this year to reach $4.19 billion, according to Emarketer. This includes ads on Prime Video as well as CTV ads that use data from retailers for targeting and measurement purposes.
Traditional TV networks that don’t have their own retail media networks are expected to play up new partnerships — Roku’s tie-up with Best Buy and Disney’s with Kroger are among the deals inked in recent months. And Walmart’s recent deal to acquire the TV manufacturer Vizio reflects the growing trend of retail media’s convergence with TV advertising.
Ad buyers expect “shoppable media,” where users can make purchases directly from the TV sets, will also be a theme of this year’s upfronts. Roku’s deal with Shopify and NBCUniversal’s with Walmart are examples of media companies making TV shoppable.
“Video consumption is now full of ‘micro-shoppertainment’ experiences to learn more and purchase while being entertained,” said Andrea Montano, executive vice president of insights and connections at the media agency Assembly, who also predicted that the trusty QR code will get plenty of airtime from networks this year.
Presentations will bring back the Hollywood glamour
Of course, there’s still expected to be plenty of razzle-dazzle at the TV industry’s annual dog and pony show, where the biggest companies kick off their presentations on May 13, starting with NBCU.
For its first in-person upfront, Netflix will host an event where advertisers can go through rooms that let them experience the alternate world of the Upside Down from “Stranger Things,” attempt a “Squid Game” challenge, and more. Netflix had a virtual presentation for its upfronts debut last year, which avoided confrontations with striking Hollywood writers.
NBCU, after touting news and reality fare last year, will bring back the Hollywood glamour, its chairman of global advertising and partnerships Mark Marshall promised.
“It’ll have more of a feel of the days of old,” Marshall said.
The mood of the upfronts presentations is likely to reflect the more optimistic feeling within the TV marketplace. With the exception of technology, Marshall said he’s seeing strength in categories including pharmaceuticals, consumer packaged goods, automotive, and insurance.
“Last year, I think people felt positive at the upfront, but they were worried about putting money down because they weren’t as sure about the economy yet,” he said. “This year they have the confidence to lay more money down.”
