A Marketer's Guide to The Upfront | MG15 · 405 Lexington Avenue • New York, NY 10174-1801 212.682.2500 • Fax 212.682.8391 A Marketer’s Guide To The Upfront By Jerome H. Dominus

AMarketer’sGuideTo

The UpfrontBy Jerome H. Dominus

o f A D V E R T I S I N G A G E N C I E S

A M E R I C A N A S S O C I A T I O N

www.aaaa.org


The Upfront

405 Lexington Avenue • New York, NY 10174-1801212.682.2500 • Fax 212.682.8391


The UpfrontBy Jerome H. Dominus

A publication of theAMERICAN ASSOCIATION of ADVERTISING AGENCIES

405 Lexington Avenue • New York, NY 10174-1801Main: (212) 682-2500 • Fax: (212) 682-8391

E-mail: [email protected] • Web site: www.aaaa.org

Copyright © 2004AMERICAN ASSOCIATION of ADVERTISING AGENCIES

All rights reserved. No part of this publication may be reproduced or transmitted by any means, electronic, mechanical, photocopying,

recording or otherwise, without written permission from the AAAA.

Preface

Among advertisers, agencies, and increasingly the press, the Upfront process has been a hot topic. And while there’s often a lot of talk

about the Upfront, the details of the process are not very well understood.

A Marketer’s Guide to The Upfront was written to demystify some of theissues surrounding the Upfront. Authored by Jerry Dominus, the bookoffers a concise discussion of the pros and cons of the Upfront.

The AAAA thanks Mr. Dominus for his work.

U P F R O N T

Contents

Introduction ............................................................................9

1. A Brief History of Television and the Upfront ....11

2. Sponsorship Alternatives..........................................15

3. Pricing Principles..........................................................19

4. Features of the Upfront ............................................23

Glossary..................................................................................31

About the Author ..............................................................35

U P F R O N T

IN T R O D U C T I O N 9

IntroductionU P F R O N T

Jimmy Neale was the pioneer broadcast advertising man who arrangedone of the landmark associations in advertising between an advertiser

and a program—Wheaties® cereal’s national radio sponsorship of the LoneRanger back in 1941.

Twenty years later, long after Neale and America had made the transition totelevision as the dominant medium in this country, he was asked by aneophyte in his radio/TV department at Dancer Fitzgerald Sample, “What’sa television commercial really worth?” His answer was classic: “Whateverany damn fool is willing to pay for it.”

And Neale went on to add that the cost of the programming—and the othercosts of running the network that offered the commercial time for sale—hadabsolutely nothing to do with how much could be charged for the spot.

What he meant was that a commercial was a perishable item that, if unsold,lost its potential to generate revenue, since the number of commerciallocations in a program was relatively constant from week to week. “Theunsold seat on an airplane that just left” was what he likened it to, and thecomparison is still appropriate today, although the television landscapeoffers far more choices than even he would have imagined.

In recent years, the process of buying and selling national television time hasbecome more complex, capturing increased focus in the advertisingcommunity as well as becoming a subject of fascination in the popularculture of America. How the evolution of this came about is the result of anumber of factors.

A BR I E F HI S T O RY O F TE L E V I S I O N A N D T H E UP F R O N T 11

A Brief History of Television and the Upfront

N ational broadcast television evolved as a continuation of the model created by radio networks, in which sponsors created and owned the

programs they sponsored and leased the facilities of the networks, whichpaid their affiliates for program carriage. Beginning in the early 1950s,after the World War II construction freeze on new stations had been lifted,television quickly grew and CBS and NBC achieved virtual nationaldistribution. ABC, a relative newcomer, was forced to operate with feweraffiliates until enough new stations began operations.

The quiz show scandals in the late 1950s resulted in the three networkstaking over control of all their programming and the sale of all thecommercial time. In the late 1960s, to recapture audience interest after thesummer viewing doldrums, ABC introduced a Fall Premiere week as apromotional event. That this coincided so nicely with the needs of theautomotive category, usually the biggest single buyer of nationalcommercial time, was an added justification; the other networks soonfollowed ABC’s lead.

As costs increased over the years, the price of admission to sponsorshipwent from full to half to a quarter of a program on an annual basis, thento alternate-week sponsorships at those levels, and finally to 60-second to30-second, and 15-second commercial lengths, with no regular patternrequirement, conforming only to the scheduling needs of the advertiser.

The “package” buy—which had been available from the leavings after themajor sponsors had made their commitments—replaced the regularpattern almost entirely.

U P F R O N T

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12 AM E R I CAN AS S O C IAT I ON of ADVE RT I S I NG AG E NC I E S

Advertisers were now able to spread their risk over a schedule thatconsisted of appearances in a broad swath of different programs, andcould adjust spending levels to match their seasonal or brand needs. Thisincreased flexibility helped make the medium attractive to more and moreadvertisers and their various brands.

The Federal Communications Commission’s (FCC) Prime Time AccessRule of 1970 (PTAR), designed to encourage more local stationprogramming in the public interest, had the effect of shrinking the supplyof national commercial time by eliminating six hours a week(Monday–Saturday, 7 pm–8 pm) of the three networks’ inventory, at thesame time that sponsorship access to the medium was being made moreavailable to more and more advertisers.

According to one knowledgeable executive, had PTAR not happened, ABCmight have ceased operations; by eliminating programming costs for sixhours a week and simultaneously reducing available-for-sale inventory, allthree networks were able to raise their prices, and ABC swung intoprofitability.

Cable television began as a distribution medium for reception-impairedareas and grew as more programming choices became available tosubscribers, due primarily to the relaxation of FCC rules governing theimportation of distant signals. In 1972, the introduction of satellite-delivered Home Box Office programming stimulated consumer demandfor access to cable. When Ted Turner put his advertiser-supportedtelevision station in Atlanta on satellite for national distribution in 1976,others followed.

Cable network revenue is generated via the sale of advertising time, as wellas revenues from the cable systems that carry their programming, for a feeper subscriber household. As cable penetration and audiences have grown,this dual-revenue stream has permitted cable networks to improve the qualityand quantity of the off-network and original programming they offer thecable and satellite systems in an effort to attract and retain subscribers.

A BR I E F HI S T O RY O F TE L E V I S I O N A N D T H E UP F R O N T 13

Today, there are more than 60 national advertiser-supported cablenetworks—broad-based or narrowly targeted—and national cableprogramming can be received by approximately 70 percent of all U.S.homes. The average U.S. home is capable of receiving 100 channels.

In aggregate, the audience to all cable programming in primetime nowexceeds that of the six major broadcast networks. Although the broadcastnetworks have suffered significant audience erosion to cable and othertelevision alternatives, audiences to individual broadcast networks still farexceed those of individual cable networks.

Syndication offers another distribution mechanism for national broadcastprogramming, both original and off-network. In order to fulfill theschedule needs of independent television stations and network affiliates,program syndicators arrange to “clear” stations on a market-by-marketbasis. Many syndicated programs achieve 99 percent coverage of U.S.homes, and may have clearances consisting primarily of network affiliates(although not necessarily all from the same network), or primarily ofindependent stations, or a mix of both.

Originally, syndicators sold all sales rights to the stations, but morerecently the stations have paid the syndicator a fee for the programming—entitling the station to sell the bulk of the commercial time in their homemarket—while the syndicator reserves a certain amount of time in theprogram with which to assemble a national offering.

The opportunity that this represents to the syndicator offsets thediminished payment from the stations for the programming. Thesyndication marketplace offers more than 130 weekly programs, morethan 33 movie packages, and numerous specials. These programs arecleared in all dayparts, and offer a broad range of program types andaudience profiles. Many achieve audiences comparable in size to thoseenjoyed by the traditional broadcast networks.

SP O N S O R S H I P ALT E R N AT I V E S 15

Sponsorship Alternatives

Television time in network, cable, and syndication can be purchased in three ways: opportunistically, scatter, or upfront. Most advertisers—

depending on their judgement of the strength of the marketplace, theirpolicies concerning program content and/or environment, the importanceof demographic targeting, and the need for precise timing of theiradvertising delivery—use a mix of all three.

OpportunisticallyAs a result of an advertiser “pulling out” of a program after havingpreviewed an episode the day before (or even the day of) the program airdate, the seller may have to resort to a fire-sale to cover the availability.There are also instances of airtime simply never having been sold at all. Invery “soft” marketplaces, knowledgeable buyers can capitalize on aplethora of inventory to get bargain rates. However, the risk of not findingbuyer-friendly opportunities is considerable; because it is so unreliable,most advertisers do not allocate significant percentages of their budget tothis strategy.

ScatterGenerally, scatter time is offered on a quarterly basis, with the advertiserconcluding negotiations anywhere between a week to two or three monthsbefore the start of their flight depending on the perceived sense of demandrelative to the supply of available inventory.

Success in pricing is determined by being able to accurately predictdemand. Scatter buys are generally not guaranteed (except when the

U P F R O N T

2


market is so soft that sellers resort to it in their attempts at closing the sale),and a correct call on market strength can make huge differences in theprice of the commercial time.

If the sellers know that there is relatively little inventory left and that manyadvertisers will be pursuing it, pricing will soar. If buyers sense such asituation, they generally try to move early, ahead of other buyers andbefore the sellers realize the strength of the demand.

When buyers believe demand to be soft, their inclination is to wait until thelast possible moment, and capitalize on the seller’s fear of being caughtwith unsold inventory. Since there are no absolutely fixed rates, the priceof scatter is generally referred to in terms of being “x” percent higher orlower than that year’s Upfront pricing for the corresponding quarter.

UpfrontThe high drama of billions of dollars being committed during all-nightnegotiating sessions, over an intense period of one or two weeks, far inadvance of the start of a television season that conforms to very fewadvertisers’ own budget cycles, and for programs of as yet unknownaudience delivery, has left many outside observers wondering about theprofessionalism of the people who buy and sell national television.

... the price of scatter is generally referred toin terms of being “x” percent higher or lowerthan that year’s Upfront pricing for thecorresponding quarter.

SP O N S O R S H I P ALT E R N AT I V E S 17

Yet the system has worked well enough for buyers and sellers that itpersists, and seems unlikely to change in the future.

The advertising trade press and, increasingly, the popular press, follow thefortunes of the individual broadcast networks versus each other, as well asthe competition between broadcast and cable for audiences and advertiserrevenue.

While the competition may be dramatic enough on its own merits, theworkings of the marketplace are also seen as predictors of the financialhealth of the parent media companies and the national economy overall.The system depends on a free-market economy, and that economy is drivenby the need of advertisers for access to a finite supply of available-for-salerating points, with each advertiser deciding the relative value to themselvesof the many choices available.

While much popular attention is devoted to prime time, it must be pointedout that all dayparts can be bought upfront, in scatter, or opportunistically.

3

PR I C I N G PR I N C I P L E S 19

Pricing Principles

The object of television pricing is revenue maximization through inventory control. Since all the sellers have many different programs

to sell over a long period of time, their objective is to manage sell-out levelsin order to be able to put together packages that appeal to the widest rangeof clients and at the same time not lose flexibility in the schedules offeredto the remaining prospective advertisers.

One saleshead said, “On the last day, when the last budget in themarketplace comes up, I want to have one unit available in every show theyneed, and have their budget just fit the market price of those last avails.”

Pricing in television is measured by advertisers in terms of their cost perthousand (CPM) viewers, although sellers are more interested in theamount of the actual cost per commercial unit (CPU) that they generatefrom the sale of the commercial, since that is the bankable measure.

While much is made of the increasing cost of broadcast network, asmeasured by CPM, those networks actually realize much more modestrevenue increases as a consequence of their declining audiences. Pricing forindividual programs along the spectrum of inventory is determined by anumber of factors, including:

Rating Level. All other factors being equal, higher-rated programs arepriced at a higher CPM level than lower rated ones. In addition tocommanding a higher unit cost because they have more thousands ofviewers, they are able to justify higher CPMs as well.

U P F R O N T


Concentration of Key Audience Demographic. Programs that offer a“purer” concentration of their target audience tend to be seen as morelikely to benefit from audience attentiveness, and thus command apremium over those with less well-defined profiles. While cable generallysells at considerably lower CPMs than broadcast, there are numerous cableproperties that command higher CPMs when measured against their keydemographic, which is a result of the value advertisers put against certainaudience segments.

Seasonality. Sellers analyze their sell-out levels and try to anticipatedemand appropriately by assigning different CPM levels to different timesof the year. In recent years, the third quarter has been the period of greatestdemand, relative to the amount of audience available for sale, and thus hasbeen assigned the highest CPM relative to the annual CPM. The firstquarter of the year, usually the weakest, is priced accordingly. Some sellershave as many as 13 or 14 “price periods” over the year in their attemptsat equalizing demand over the full 52 weeks. For example, the week afterChristmas offers bargains for those advertisers willing to run, since somany others cut back their spending during that week, despite normalviewing levels.

New Versus Returning. New programs have high failure rates (across allthree distribution systems) and are typically priced more attractively thanproven performers.

Some sellers have as many as 13 or 14“price periods” over the year in theirattempts at equalizing demand over the full52 weeks.

PR I C I N G PR I N C I P L E S 21

Day of Week. Retailers and motion picture studios put a very high valueon Thursday and, to a somewhat lesser degree, Friday, trying to generateweekend traffic, with predictable results on pricing.

Program Content. Due to their nature, certain programs are seen by someadvertisers as inappropriate environments for their messages, thusdiminishing the pool of potential advertisers.

Opportunity for Program Involvement On- or Off-Screen. Programs thatoffer advertisers product placement, thematic integration, or off-screenpromotional partnerships may justify higher-than-marketplace pricing, asmeasured by CPM, depending on the fit between the property and theadvertiser.

Dayparts. There was a time when the supply of commercial inventory in adaypart was constant, but this is no longer absolutely the case. In additionto gradual increases over the years in commercial load by all the televisionmedia, a new element has emerged. Some networks have redistributed theircommercial distribution by program, so that higher-rated, more saleableprograms carry more commercials than the network average, while lessmarketable programs experience offsetting decreases in their number ofcommercials for sale. Thus, the weekly number of commercials mayremain unchanged, but the supply of salable audience is increased.

Special Programming. In order to share the cost of very expensiveproperties with their affiliates, such as the NFL or the Olympics, broadcastnetworks have recaptured affiliate station commercial positions for sale bythe network itself. In certain instances, the network and the affiliates tradeinventory. For example, CBS gave increased Evening News inventory tothe stations in exchange for increased network inventory in Late Night.The value to the network was greater than what it gave up, and thestations thereby helped defray the cost of the NCAA Basketball franchisewithout any direct out-of-pocket cost to themselves. The “closed box” ofavailable-for-sale inventory was, in these cases, expanded, and the supply-demand equation for the effected dayparts was reconfigured.

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FE AT U R E S O F T H E UP F R O N T 23

Features of the Upfront

While it is true that substantial amounts of money are committed during a short and intense negotiating period, much preparation and

marketplace analysis precedes the actual negotiations.

Agencies continually monitor the ratings and demographic characteristicsof all advertiser-supported television in order to prepare their ownestimates of future performance. Trends by program type, by daypart, bydistribution mechanism (i.e., cable, broadcast or syndication) are carefullyfollowed.

Additionally, spending trends by advertiser category are also tracked. Theemergence of major new categories, such as theatrical videos orprescription drugs, can impact the marketplace considerably.

The strength and direction of the general U.S. economy overall, corporateprofits, etc., as well as those of their own clients, will bear on predicteddemand levels and are closely watched.

Finally, actual experience in the scatter market during the year leading upto the Upfront gives agencies and clients a strong indication of demandlevels and marketplace strength or weakness. The ease with whichadvertiser schedule-change requests are accommodated or make-goodssecured for preemptions offer further insight into sell-out levels of thevarious suppliers, and add to one’s ability to “read” the market. Thesellers, meanwhile, stage presentations (some very elaborate) to the buyingcommunity, previewing their new programming and the rationales for the

U P F R O N T


success of their offerings. Most industry observers would probably agreethat the single, overwhelming justification of Upfront buys is that theaudience delivery is guaranteed by the seller. Television audiences haveproven themselves to be fickle and advertisers welcome the certainty thatthey will deliver their messages in the volume they have planned and at thetime they were designed to be delivered.

Purchased much closer to air date, scatter plans are seldom guaranteed.

In the early days of television, “don’t worry, you won’t get hurt” was theinformal way that the broadcast networks reassured their advertisers thatthey would be “taken care of” if a program disappointed.

ABC, when still the weakest network in 1967, was anxious to attractsignificant shares of major advertiser budgets and was the first to offer“hard” audience guarantees.

Advertisers found this absence of risk irresistible and it was inevitable thatthe other networks would have to follow.

With overnight or weekly rating and demographic information nowreadily available, delivery can be monitored closely, and pre-agreedperformance guidelines adhered to. If the advertiser cannot underdeliver,say the sellers, there is a need to ensure that the advertisers don’toverdeliver, or get more audience than they paid for.

Most industry observers would probably agreethat the single, overwhelming justification ofUpfront buys is that the audience delivery isguaranteed by the seller.


Therefore, sellers build some optimism into the audience levels theyguarantee—“just in case we get lucky.” The allowable size of the gapbetween buyer and seller estimates is part of the negotiation, and sellersreserve inventory in advance for use in the fulfillment of their guarantees.These are variously referred to as “makegoods” or “audience deficiencyunits” when scheduled. On those occasions when sellers exceed theirinternal performance estimates, that inventory becomes available for sale.Buyers continuously monitor their schedule’s performance, in order to stayon track with their audience guarantees.

The broadest possible selection of programs is available to Upfrontadvertisers. A wide range of philosophies, from “tonnage” (usually thelowest rated, least desirable, and thus lowest-priced programming) to“premium environment only” (the highest rated, most advertiser-friendly,generally most sought-after programming) can be executed depending onthe media philosophy of the advertiser.

Regardless of rating level, matters of taste and program content can alsoimpact the list of acceptable programs that fit the advertiser’sspecifications. Historically, anywhere from 60 percent to 85 percent of theinventory is sold in the Upfront—highest in broadcast, somewhat less so incable, and ranging widely in syndication, depending on the property—andit may be difficult to implement whatever philosophy the advertiserembraces with the limited choices left for scatter sales.

The press reports in detail on the large sums committed in the Upfront sofar in advance of air dates (the process used to start on Washington’sbirthday and has now migrated to May and/or June). Overlooked,however, are several features of the arrangements that buyers and sellersagree upon in recognition of the need to offer flexibility to the advertiser.

Cancellation rights typically allow an advertiser to drop an increasingpercentage of its commitment as the schedule goes deeper into the future,with 90 or sometimes fewer days notice. The fourth quarter portion (since


it is most imminent) is generally firm, and the lead time is generally not aburden for advertisers, whose plans by then are usually well in place.

Often 25 percent of the first quarter of the next year, and 50 percent of thesecond and third quarters, can be cancelled. Lead-time for cancellationnotification to the seller is negotiable, ranging from 45 to 90 days. If oneassumes constant spending levels by quarter, almost a third of that annualcommitment is non-firm. Additionally, industry practice is to allowadvertisers to take credit when programs are cancelled or pre-empted.However, if advertisers take too much advantage of this practice—whichparticularly has faced the broadcast networks as a result of their recentrapid program cancellations and schedule changes—the sellers reserve theright to renegotiate the price of the schedule in its new configuration.

There are obvious implications to the annual CPM if dollars changeunevenly by quarter or pricing period, but a “material” change in the sizeof the schedule overall can also cause a reopening of price negotiations.However, as with other aspects of the Upfront, there are no absolutestandards for what constitutes a material change in the advertisers’schedule. Often, advertisers are able to offset any excess inventory by usingit for brands that had not been planned originally, but are now seekingadvertising weight. As one agency executive said, “I spend two weeksbuying this stuff and the rest of the year rearranging it.”

As media plans change, advertisers are often able to re-express their dollarsinto different schedules, with the cooperation of the network or syndicator.Should an advertiser still find itself overcommitted, relief from theremaining obligations can be sought. Since scatter pricing is often muchhigher than that of the Upfront, it is not unusual for the seller to happilyresell that inventory, while relieving the original advertiser of hisobligation.

Pricing from year to year is generally negotiated as a percentage change inthe CPM of a “mirror” of the schedule of the prior year; each advertiser’s


base CPM is changed in the new offering to reflect the seller’s perceptionof the strength of the market. There have been seasons in which there wasagreement that demand was relatively low and pricing was negotiateddownward. However, those conditions have been relatively few in the lastdecade. Buyers, of course, never see marketplace demand to be as strongas the sellers, and as a result of agency consolidation are now in areasonably good position to have a large enough sample of the overallmarketplace to have confidence in their assessment. Additionally, theimpact of program mix changes has to be factored in year-to-yearcomparisons.

Any changes in the amount of money to be spent by quarter (or even priceperiod) of the year, or proposed changes to the terms and conditions of thedeal, will influence the CPM of the offered schedule. Schedules of networksor individual syndicated property that are showing growth in audiencetend to be rewarded with more favorable price adjustments than thoselosing audience ground.

Not all sellers see the strength of their marketplace the same way as theircompetitors, allowing advertisers to make judgments about the relativevalues offered, at their respective price levels. Agency buyers provide theirmedia planning departments with estimated costs for the next year; mediaplans are developed accordingly.

Based on actual conditions, plans can be modified to reflect advertiserjudgments of the value of each element of their media plan at the priceoffered. They can move money from one supplier to another, or change adaypart mix, or move money from broadcast to cable, or add moresyndication, or the reverse. At one time, there was a fairly predictablesequence of negotiating, with broadcast networks being addressed first,followed by the other two distribution forms. That is no longer the caseand, depending on perceived market strength, cable or syndication havegone first—usually as a hedge against broadcast inflation.


More recently, all three forms have been negotiated simultaneously, thusoffering the buyer the greatest flexibility (and long, long negotiationnights). Attempts at curtailing the well-publicized, all-night negotiatingsessions have not been successful, since inventory, once put on hold for anadvertiser, is no longer available to the next buyer. (Year-round schedulingand summer originals might make it a little harder for both sides to predictratings, but audience estimating has always been part of the process.)

Unlike the stock market there are not always sellers in the televisionmarketplace who can match with buyers, and the prospect of scarcityinforms much of the decision making. Also, negotiations with as manyvariables as those of television schedules have rhythms of their own and aninterruption of continuity would probably not serve either side. “Closingand opening bells,” which have been proposed, seem impractical toimplement fairly across four time zones of negotiators.

There are probably as many negotiating strategies as there are negotiators.Multi-year deals are sometimes reached, with an understanding that theactual CPM will be determined after the resolution of the bulk of themarket, and may enjoy better-than-market rates in exchange for theadvance commitment. Rates secured for other clients by the buyer providea well-informed reference point.

Some advertisers bundle multiple dayparts to gain leverage with the sellers,while others continue to negotiate them individually. Cross-platform or

Unlike the stock market there are not alwayssellers in the television marketplace who canmatch with buyers, and the prospect ofscarcity informs much of the decision making.


multi-network deals (made possible in the age of media ownershipconsolidation) may also find willing partners, on those occasions whentheir respective needs coincide.

There are buyers who want to be early in the market and others who arehappy to be late. “I can always find someone who needs to play catch-upin the market and make a terrific deal with him,” was the credo of onemajor buyer.

Buyers have a very wide assortment of choices available; their judgmentsabout the relative merits of each offering, at its price determines their finalschedule. They, more than the sellers, impact their own pricing based onthe demand they create.

Some buyers specifically start their final negotiations late at night to catchthe sellers when they are exhausted. And there are sellers who delay theirofferings until the buyers’ air conditioning is scheduled to be turned off forthe night.

It’s all part of the Upfront, and Jimmy Neale would have loved it.

GL O S S A RY 31

GlossaryU P F R O N T

broadcastProgramming offered by the six national networks (ABC, CBS, Fox, NBC,UPN, and The WB). Available to their audience either over-the-air orthrough carriage on cable systems.

CPM (cost-per-thousand)A quantitative measure of media evaluation, relating a medium’s cost to itsaudience delivery. Can be expressed in terms of households or specificdemographic segments of the viewership.

Formula: advertising cost gross $ (000) divided by audience (000)

CPU (cost per unit) The dollar amount charged for each commercial appearance.

daypartThe division of the broadcast day into individual parts. In television, theparts are:

Daypart Eastern Time*

Early morning 6:00 am–9:00 amDaytime 9:00 am–3:30 pmEarly fringe 3:30 pm–5:30 pmEarly news 5:30 pm–7:00 pmPrime access 7:00 pm–8:00 pmPrime (M-Sat) 8:00 pm–11:00 pm


daypart (Continued)

Daypart Eastern Time*

Prime (Sun) 7:00 pm–11:00 pmLate news 11:00 pm–11:30 pmLate fringe 11:30 pm–1:00 amLate night 1:00 am–6:00 am

*times may vary by market and by station

In cable, daypart definitions may vary somewhat, reflecting programming(sports, movies, etc.) that bridges the traditional dayparts shown above.

FCC (Federal Communications Commission)The FCC is an independent United States government agency, directlyresponsible to Congress. The FCC was established by the CommunicationsAct of 1934 and is charged with regulating interstate and internationalcommunications by radio, television, wire, satellite, and cable. The FCC’sjurisdiction covers the 50 states, the District of Columbia, and U.S.possessions.

make-goodThe commercial unit a supplier offers an advertiser in place of a regularlyscheduled commercial unit that did not run, was aired improperly, or wascontained within programming that was pre-empted.

opportunisticA marketplace condition related to a surplus of unsold commercialinventory that is available for sale normally day-of-air or very close to theair date. Unexpected overdelivery of guaranteed sponsors and/or programcontent pull-outs attribute to an opportunistic market.

GL O S S A RY 33

packageA combination of locals offered as a group to an advertiser. The packageis generally priced more attractively than the collective costs for each local.This may also be called a rotation or a scatter plan.

scatter planScheduling method where the advertiser’s commercials are rotated amonga broadly-described group of programs and/or time periods. Theadvantage is that the advertiser gains a greater net audience (reach); thedisadvantage may be that the station may included less attractivelocals/commercial units in the schedule. (See also package.)

AB O U T T H E AU T H O R 35

About the AuthorU P F R O N T

Jerome H. Dominus began his career in media research at DancerFitzgerald Sample. He then joined CBS-TV, where he spent 26 years in

a variety of increasingly responsible sales positions. For the last 10 yearsof his CBS career he served as vice president sales, with responsibility forthe entire television network.

Dominus left CBS to join J. Walter Thompson New York, as seniorpartner, director of national television and radio. Upon leaving JWT, heserved as vice president, network sales and marketing, for theCabletelevision Advertising Bureau. He retired in March of 2004.

Books in “The Marketer’s Guide” series include:

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A Marketer's Guide to The Upfront | MG15 · 405 Lexington Avenue • New York, NY 10174-1801 212.682.2500 • Fax 212.682.8391 A Marketer’s Guide To The Upfront By Jerome H. Dominus