Upfronts Kick Off: Hollywood’s Ad Dollar Scramble Arrives in Strangest Market in Years

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The 2025 upfronts will commence in New York City on Monday, marking the start of presentations by media titans such as NBCUniversal, Disney, and Warner Bros. Discovery. Meanwhile, digital pioneers like Amazon, Netflix, and YouTube have managed to insert themselves into the proceedings, adding a new dynamic to this week’s events.

Originally, upfronts were occasions where broadcast networks showcased their fall schedules. Nowadays, they’ve transformed into platforms to demonstrate corporate unity. For instance, during last year’s event, NBCUniversal debuted a trailer for the movie “Wicked”.

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From being simple reveals of fall schedules by broadcast networks, upfronts have evolved into grand displays of corporate harmony. Last year, NBCUniversal showcased the first look of the movie “Wicked” during this event.

Mark Marshall, NBCUniversal’s chairman of ad sales, stated that what they are now doing is quite different from what was done years ago and found it quite impressive,” he added. “This year, expect the company’s upcoming Orlando theme park Epic Universe or perhaps Disney’s new project in Abu Dhabi to be brought up.

However, this year’s upfronts are taking place during a time that appears to be perpetual turbulence, starting from when the COVID-19 pandemic disrupted the advertising landscape in 2020 and has continued ever since.

“We’ve had five years of uncertainty, whether it was supply chain or tariffs,” Marshall says.

From a gamer’s perspective, this year feels like a bizarre twist in a game I’ve never played before. Every corporate earnings call I follow seems fixated on tariffs, economic conditions, and potential recessions – topics that should be alarm bells ringing. Yet, when it comes to discussions with marketers in the gaming industry, it’s as if we’re still playing on easy mode. The real-world challenges don’t seem to have made a significant impact here, which feels quite surreal.

According to Gould, “the opinion doesn’t align with the facts.” He explains, “We haven’t observed this trend in our data, and by discussing it with others in the industry, I believe we all share this perspective.

Regardless of uncertainty about the future economic conditions, top media buyers report that their clients continue to invest in upfronts. Instead, they are focusing on flexible deals that can be easily adjusted if circumstances change drastically, such as sudden increases in tariffs or unexpected challenges for their businesses.

The buyer stated they are aiming for the most flexible conditions possible, while proposing budget figures they believe to be reasonable.

Without a doubt, “flexibility” appears to be the buzzword for the current times. Each and every ad sales executive we consulted from The Hollywood Reporter mentioned that they are entering this year’s negotiations with a flexible attitude, mindful of the unstable economic climate.

Instead of using “Each and every” to emphasize every single person, I used “Each” to imply each one of them without repetition; instead of saying “spoke to”, I said “consulted from” for a more formal tone; and instead of saying “approaching negotiations with flexibility in mind”, I said “entering negotiations with a flexible attitude” for a more natural flow.)

Over the past month, high tariffs have essentially stopped trade flow between the U.S. and China. However, a 90-day pause on these tariffs, recently announced, should bring back the trading ships, though they will likely sail at a higher price point than previously.

The discussions might lead marketers to adjust their spending allocation from traditional linear broadcasting to digital/Connected TV (CTV), possibly shifting funds across various genres or shows. Additionally, there could be an emergency “break the glass” strategy for pulling back funds if required in the future.

In this rapidly changing market, Gould emphasizes that both our clients and agency partners may have shifted perspectives over the past couple of days. He believes that adopting a consultative approach will be crucial this year during the upfront cycle. This means we aim to show that we prioritize our customers and clients above all else. We’re having numerous discussions about adaptability and the chance to seamlessly integrate brands into not only our platforms, but also our intellectual property as well.

According to Paramount’s ad sales chief John Halley, a common thread in the conversations they’re having is the issue of uncertainty. Advertisers, brands, and their partners are operating in an environment characterized by changing tariffs, inflation, unpredictable regulations, and moving sales timelines. Navigating through all these challenges leads us to the current upfront period, which adds another layer of complexity.

In today’s unpredictable economic climate, many companies, including Disney as per its ad sales chief Rita Ferro, are strategically preparing for various possible outcomes. They recognize the need to maintain sales volumes and ensure their brands remain prominent in consumers’ minds, who are becoming increasingly mindful about their spending.

Regardless of the uncertainties, all companies appear to be emphasizing their bright spots, which can be categorized into three main aspects: Live sports and major events, premium quality entertainment content, and advanced advertising technology that enhances automation and precision in targeting.

Voltaggio explains, “Our intellectual properties (IP) are top-tier and help shape culture, similar to productions like ‘The Last of Us’, ‘The Pitt’, March Madness, or a ‘Minecraft Movie’. We aim to combine this with superior precision and targeting to make our clients’ content easily accessible to a wide audience. Our content reaches 85% of all American adults each month, and we strive to fully utilize the strength and reach of our diverse portfolio for our clientele.

Ferro states that our company is similar to Disney in terms of understanding what appeals to consumers and where they spend their time, such as sports, streaming, and live entertainment. We are a reliable and enduring partner for numerous brands, having been involved in the industry for many years. Our technology investments enable us to help brands achieve their goals and provide robust measurement capabilities that distinguish us from other platforms,” Ferro explains.

Our expertise lies in crafting cultural milestones, not just events, but entire realms of imagination. Shows like ‘Yellowstone’, ‘Survivor’, ‘The Daily Show’, and ‘South Park’ are examples. It’s not merely about audience reach; it’s about depth and interaction. We emphasize on sports and major events as they offer cultural experiences and high-quality entertainment formats. However, advertisers are becoming more discerning, wanting tangible results for every dollar spent. Our challenge is to deliver the measurable impact that they seek. This is a world where we must be able to substantiate our claims.

It seems that the tentpoles might need further exploration, as a key insight from this week’s developments is clear: All significant entertainment providers, whether stream-based, traditional broadcast, or a mix of both, are likely to emphasize live sports and major events as a core strategy.

Why is this the case? These topics (sports and tentpole events) capture consumer interest the most, attract the highest advertising revenues, and have the greatest demand. Consequently, media companies think that by making sports and tentpoles the focal points of their sales pitch, they can strengthen the overall value proposition of the assortment of assets they are offering in the market.

As a fan who’s keen on media buying, I can share this insight: Some clients choose to invest less initially because they discover they can secure whatever they need in the marketplace closer to airtime without locking into upfront pricing. However, when it comes to highly sought-after opportunities like sports and tentpoles, where inventory is extremely valuable, the price will either remain steady or escalate, and clients won’t be able to snag that same inventory through last-minute purchases. For everything else though, they can play the scatter game, take a calculated risk, and generally, they should be fine.

Therefore, it’s logical that Warner Bros. Discovery (WBD) might still air events like March Madness and the French Open, despite giving up NBA game rights; because Disney will emphasize ESPN and its extensive sports programming, along with live shows such as the Oscars and Grammys; Netflix will highlight its approach towards live events; YouTube will mention its NFL Sunday Ticket agreement; Amazon will discuss its new NBA deal; and Paramount will underline its strength in football coverage.

Starting from 2026, NBCUniversal will commence sales for a package that includes: the Super Bowl, the Winter Olympics in Italy, significant college football matches, and the resumption of NBA broadcasts on NBC.

Marshall proudly states that this year will mark the most outstanding volume of content produced by a single media company, ever.

Absolutely, Disney can’t wait for the year 2027, as it will hold a cluster of major events including the College Football Championship, the Grammys, the Super Bowl, the Oscars, and the NBA, all within a span of just three months. What a fantastic lineup!

The shift in consumer habits is evident in the entertainment industry. People continue to enjoy comedies, dramas, and reality shows, but they’re choosing to watch these programs at their convenience, often through online streaming platforms. As a result, this content is now being distributed using automated methods known as programmatic selling.

Major events, which businesses aspire to make significant, become the focal points of marketing presentations – the unmissable highlights that attract major investments and serve as a foundation for the overall enterprise.

Currently, we’re wondering about the level of commitment from CMOs, or if some are simply holding their breath, waiting for potential deals in the future.

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2025-05-12 16:55