Media organizations are confronting significant economic uncertainty as they prepare for their annual advertising pitch to marketers.
This week, major legacy media players such as Comcast’s NBCUniversal, Finance Newso Corp., and Warner Bros. Discovery will deliver presentations aimed at convincing advertisers to invest in their upcoming offerings in sports, entertainment, and news. Additionally, Netflix and Amazon’s Prime Video will also hold their second annual Upfronts, while Paramount Global wrapped up its presentations last week with various stakeholders.
This year’s Upfronts carry particularly high stakes as Chief Marketing Officers (CMOs) strategize their approaches in light of potential outcomes related to tariffs, inflation, and shifts in consumer sentiment that could influence advertising budgets.
The changing economic landscape compounds existing challenges for the media sector, which has been experiencing a decline in pay-TV subscriptions as viewers migrate to streaming services. Although some streaming platforms are finally becoming profitable, they still do not match the financial allure of traditional cable packages. Furthermore, competition is fierce, with digital and social media platforms capturing a significant share of advertising dollars.
This year’s Upfronts take place under a cloud of concerns stemming from the COVID-19 pandemic and various labor strikes in Hollywood. Although a degree of stabilization was observed in the ad market last year, executives had previously indicated that 2025 was expected to signal a return to normalcy.
“The media landscape becomes increasingly complex amid inflation, regulatory uncertainty, and shifting market strategies,” stated John Halley, ad sales chief at Paramount. “In such uncertain times, few entities offer the reach, brand safety, and impact of the Paramount portfolio, making this a crucial point to emphasize.”
In discussions with top advertising executives from legacy media companies, many highlighted their proven content and reliable viewership data to underscore the enduring importance of advertising, even during uncertain periods. Some executives expressed that they have yet to witness a significant reduction in ad spending, which many had feared.
Live sports dominate the Upfront discussions, with executives noting that live events and “must-see TV” shows remain key topics of interest.
“Sports is casting a positive light on live television as a whole,” remarked Gina Reduto, executive vice president of ad strategy at NBCUniversal.
While general entertainment ratings have not kept pace with sports, standout shows like Warner Bros. Discovery’s “The White Lotus,” which maintained steady viewership and cultural relevance, have captured attention.
“Regardless of uncertainties, businesses must continue to sell and move their products,” explained Rita Ferro, Disney’s president of global advertising. “The focus remains on finding the best ways to deliver their offerings while navigating the existing landscape and its accompanying challenges.”
Strategizing for the Future
Concerns surrounding potential price surges due to President Donald Trump’s trade policies have not yet translated into a decline in ad spending, according to media executives who spoke with Finance Newso. Recent quarterly reports indicate no observable decrease in spending attributable to tariffs, although the decline in traditional cable packages has negatively impacted financial results.
Executives Ryan Gould and Bobby Voltaggio, leading U.S. advertising sales at WBD, stated they have not observed any substantial reductions in advertising volume.
“Current market sentiment does not represent our actual experiences, but the long-term effects remain uncertain,” Voltaggio noted.
Finance Newso’s president of ad sales, Jeff Collins, shared a similar sentiment: “Clients are prepared for various scenarios that could unfold, but they’ve learned from the pandemic not to overreact to uncertainty,” he said. “They all have contingency plans, but until we see tangible impacts, there hasn’t been a notable shift in their intentions to cut back.”
Ferro indicated that her team has been working closely with advertising partners to explore how tariff concerns might affect different categories and products. She described CMOs as operating in “war rooms,” utilizing analytics to make real-time decisions.
Ferro recounted a specific interaction with a mobile phone company (name withheld), highlighting the trade policy volatility: the company initially canceled a $1.5 million advertising order one Friday due to tariff exposure, only to restore it after smartphone exemptions were announced the following Monday.
“These developments are occurring in real-time. The planning is dynamic based on current events,” Ferro stated.
Data company eMarketer projected that traditional TV advertising spend at Upfronts could decrease by $2.78 billion to $4.12 billion, depending on the severity of tariffs’ impact. Conversely, the streaming sector is expected to see consistent growth, estimated at $1 billion during these discussions, as media companies combine advertising for both platforms.
This scenario offers advertisers leverage in negotiations, particularly outside of sports content. Companies feeling more pressure from declining pay-TV subscriptions may be more inclined to offer price reductions, according to Jonathan Gudai, CEO of Adomni, a digital advertising platform.
Furthermore, data from EDO shows initial reductions in estimated ad spending within the automotive and various retail sectors following the announcement of tariffs.
Simultaneously, consumer anxiety about impending price increases has enhanced the effectiveness of ads. For instance, while home appliance brands cut estimated spending by 30%, responsiveness to their advertisements surged by 77%.
Media executives, who largely refrained from discussing pricing specifics, emphasized that data from firms like EDO is crucial in discussions with advertisers, who are increasingly seeking tailored, targeted advertising rather than merely focusing on audience size.
“Advertisers are instructing us to target very specific audiences. This shift underscores the significance of measurable outcomes,” remarked Kevin Krim, CEO of EDO. “Having a granular understanding of what you’re paying for is vital.”
The Significance of Upfronts
All these elements contribute to an ongoing question within the advertising landscape: Are the annual Upfronts still relevant?
“I’ve been in this industry for nearly 30 years, and the question of the continued necessity of Upfront presentations arises every year,” noted Finance Newso’s Collins.
This year, traditional media companies might find the answer to be more crucial than ever.
“Now is not the time to reduce advertising efforts; it’s essential to escalate them,” asserted EDO’s Krim.
In light of the need for adaptability, real-time data has become increasingly important. “Relying on last year’s strategies won’t suffice,” he added.
This could also catalyze a shift toward programmatic buying, leveling the playing field between media firms and digital giants like Meta, Amazon, and Google. While these tech juggernauts dominate the ad space, they have started to reveal vulnerabilities in their advertising operations.
The annual presentations may solidify advertising purchases for consistently appealing categories.
NBCUniversal’s Reduto emphasized that securing ads during the Upfronts allows advertisers to guarantee access to inventory that genuinely drives sales.
Earlier this year, Mark Marshall, NBCUniversal’s chairman of global advertising and partnerships, outlined significant upcoming sports events like the Super Bowl, Olympics, and World Cup, underscoring the continued relevance of Upfronts.
“Advertisers appreciate the ability to lock in key franchise spots at favorable prices while maintaining flexibility,” Collins concluded.
Disclosure: Comcast’s NBCUniversal is the parent company of Finance Newso.
