- Procter & Gamble is shifting away from buying TV inventory through upfronts.
- They are just one of many advertisers looking to change the current TV buying process in light of pandemic-induced uncertainty.
- Insider Intelligence analyzes this industry and several others to provide in-depth analyst reports, proprietary forecasts, customizable charts, and more. Learn more about what we offer.
Procter & Gamble is shifting its strategy from TV upfronts to buying directly from TV networks, per The Wall Street Journal.
It said its decision came from a need for greater flexibility when buying ads closer to air, as well as a general lack of satisfaction with the current upfronts model. Procter & Gamble is one of the largest advertisers in the US and normally acts as a driving force for a significant share of upfront spending. The consumer goods giants did say that agencies conducting upfront purchases on behalf of Procter & Gamble will still play a role in its direct buy process.
Procter & Gamble is one of many advertisers that want to change the current TV buying process in light of pandemic-induced uncertainty. In June, the Association of National Advertisers called for a delay to the 2020-2021 upfronts “until greater marketplace information and clarity becomes available,” and said there should be a new calendar year process that mirrors traditional budget cycles rather than TV seasons.
These concerns have largely arisen from the pandemic, which has made advertisers wary of committing funds to future TV buys, which has been further compounded by production delays afflicting many networks.
Our estimates show that there will be a significant decline in upfront spending this cycle. US upfront ad spending will decline 27.1% in the 2020-2021 season to $14.78 billion. However, what doesn’t get spent during the upfronts will still remain in the TV ecosystem because companies like Procter & Gamble will just pursue direct buys or settle for higher prices in the scatter market.
For agencies, this pivot from upfront planning will narrow the window between buying inventory and airtime, which means that they will have less time to plan TV campaigns.
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