Last week the dozen participants in the NewFronts unveiled more
than 100 "shows" in hopes of convincing advertisers and agencies
that they're a real alternative to advertising on TV. But a couple
of questions linger: After the dust settles and all these series
are floated into a digital abyss, will anyone remember them? Or,
more important, will they serve their intended purpose, which is to
transfer a piece of the $74 billion U.S. TV market to video?
Agencies and brands are certainly receptive to the pitch. The
Skylight Room at Moynihan Station holds 900, but when RSVPs
exceeded 1,200, AOL added an overflow room and rented a bar across
the street. People were turned away from Yahoo at the Best Buy
Theater in Times Square (capacity 2,100) and Google's Brandcast at
Pier 39 (1,500 attended). It's safe to say that the advertising
world got the digital upfronts -- or NewFronts, as they're branded
-- they've always wanted.
Some shows unveiled last week look quite a bit like TV. For
example, Hulu's "Mother Up!" is a half-hour comedy series -- a
"Family Guy" but geared toward women was how producer Eva Longoria
described it at the Ad Age Digital Conference. But most are still
three to five minutes long: small budgets against small ideas and
may be better compared to blown-out "Saturday Night Live" skits
than the TV series they aspire to be. Last year's NewFronts -- the
first -- produced just one show anyone would consider a breakout,
Yahoo's comedic take on "The Bachelor" called "Burning Love." It
was a hit not because of its massive audiences but because it was
picked up by E! Entertainment.
The power of unique, original content has become obvious to
everyone in video. And it doesn't have to be a full schedule; one
or two hits will do. "Mad Men" lifted tiny AMC out of obscurity,
and a perceived hit such as "House of Cards" (no one but Netflix
knows the audience size) has had a similar effect. But the web is
still waiting for its "House of Cards" moment, that one giant bet
that if successful can define a brand.
No one has made that kind of bet outside the TV ecosystem.
You can argue that advertisers aren't buying single shows on the
web, anyway -- the scale is too small. They're buying across
networks where original shows are part of the deal.
"These are audience extensions. ... It's about a channel or
vertical," said Ari Bluman, chief digital investment officer,
GroupM.
Having a hit may not matter as much as aggregating enough
non-hits to give advertisers the scale to pay attention. And some
argue that a tiny, devoted opt-in audience, say, for Wired's "Angry
Nerd" or Felicia Day's "Geek and Sundry" is more valuable than a
passive one in front of the TV, where programming is likely
competing with smartphones and tablets. "Content doesn't have to be
great. It has to be good enough," said Barry Lowenthal, president,
Media Kitchen.
Condé Nast Entertainment President Dawn Ostroff -- no
stranger to upfronts as former president of the CW -- said cable TV
in its early days looked a lot like web video today: low budget and
short. That changed as advertisers pushed for longer shows to hold
more advertising.
That process may be happening now as marketers look for
alternatives in the face of smaller audiences and higher TV prices.
But that doesn't mean dollars will shift to web video. "If
anything, a buyer reacting to inflated network-TV pricing is more
likely to shift a budget toward lower-cost cable inventory," said
Brian Wieser at Pivotal Research in a research note.
That said, the video market is the fastest-growing in
advertising, up 32% to an estimated $3 billion in 2013, according
to Mr. Wieser (though it's still a fraction of the TV market,
estimated at $74 billion by WPP's Kantar Media).
More than getting in touch with current TV viewers, advertisers
view web video as the best option for reaching those who rarely or
never watch TV, the so-called cord-cutters or cord-nevers who are
consuming entertainment primarily via the web and paid
services.
"Brands that need to speak to this demo realize they won't reach
them through traditional TV," said James O'Neill, VP at RJ Palmer Interactive Media. "Those
brands that target the 18-to-34 demo should no way hold 80% of
their dollars for TV."
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CONTRIBUTING: JEANINE POGGI