PEARL RIVER, NY: A majority of senior executives working in US media organisations expect changes to the model of selling advertising in advance at the annual Upfronts and Newfronts, a new study has shown.
A survey of 100 C-level and senior management executives carried out for Active International, a corporate trade business, found that almost two thirds of respondents (63%) thought the current practice would alter in the course of the next three years.
Almost half (47%) said it would be completely replaced, while 16% suggested that the Upfronts and Newfronts models would merge into one. The remaining 37% anticipated things would stay the same.
When asked about their top priorities for 2015, respondents ranked reinforcing advertising value by emphasising content (58%) above developing new digital, mobile and social (DMS) advertising channels (42%).
These views were not consistent across the survey demographic, however, as C-level and finance executives (49%) were more concerned about developing DMS inventory than their marketing and senior management counterparts (35%).
In contrast, marketing and senior management executives (65%) placed more weight on reinforcing advertising value than C-level and finance executives (51%).
"The ability to promote audience engagement and leverage quality content has long been the cornerstone of media companies' growth capabilities," said Jim Porçarelli, Active International's Chief Strategy Officer.
"But the paradigm shift in the marketplace toward DMS channels has significantly disrupted the status quo, and it is clear that the industry is racing to catch up to the new digitally savvy consumer."
Nearly three-quarters of media executives (71%) expressed concern about how they could most effectively deliver audience through DMS channels.
And 88% of all respondents said their technology focus this year is on expanding their DMS offerings, while 52% indicated their business would be increasing investments in programmatic technology in the second half of the year.
Data sourced from Business Wire; additional content by Warc staff