CTV and The Upfront: What is it, and where did it come from?
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The Upfront is a time-honored tradition that comes from the Television industry. In simple terms, it’s when big advertisers with large budgets promise to spend a dollar amount with major TV Networks and in exchange, they usually receive special rates and preferential treatment. In other word, they are making an “Up Front commitment” to spend with certain TV Networks. The Upfront cycle is typically Q4 – Q3 of each year.
The Upfront planning typically starts in Q2 with the kickoff traditionally in May of each year, planning for a Q4 launch to kick off the new Upfront season. During the Upfront, each large TV Network will hold an exclusive event, which typically includes a presentation and some form of a party with all of their most important advertisers. During the presentation, there is a preview of the upcoming season’s new shows, product offerings, and an introduction to notable talent.
After the Upfront kick off in Q2, there is typically a negotiation period between the TV Networks and the Media Buying Agencies. Meetings are held on both a high level with top executives from the TV Networks and the Media Agencies, and with individual media buying teams and sales executives to negotiate the specific terms and content of the Upfront deal.
In 2024, Digital Advertising was a key component of Upfront Negotiations. Below are a few stats on where a few of the big TV Networks landed in Digital Upfront commitments.
Disney/Hulu reported profitability in August of 2024 – “The DTC streaming business specifically (which includes Disney+, Hulu and ESPN+) had revenue of $6.4 billion, and income of $47 million, compared to a year ago when it had losses of over half a billion.” – (Source: Disney Turns a Profit in Streaming as Entertainment Income Soars). At the close of the 24/25 Upfront, the company noted: “Overall revenue and volume are up +5% year over year.” (Source: Disney Advertising Concludes Upfront Negotiations With Strong Momentum Across Sports and Streaming)
Paramount says that they landed $1B in Digital Upfront commitments. (Source: Paramount Global Says It Landed $1B In Digital Upfront Ad Commitments)
Amazon Tops Internal $1.8B Upfront Ad Goal In First Year Of Prime Video Push (Source: Amazon Tops Internal $1.8B Upfront Ad Goal In First Year Of Prime Video Push)
As traditional linear and cable TV viewership continues to decline and more consumers continue to “Cord Cut”- Digital Advertising will only continue to grow in importance during the Upfront planning cycle.
