The upfronts are a time-honored tradition of network media; in May, the biggest networks gather for a glitzy multi-day event in New York City to show off their new fall content. Advertisers flock to select the programming they’re most interested in pairing with, negotiating millions of dollars in ad buys, product placement, and tie-in marketing. Lots of booze, food, and money changes hands during the presentations as networks compete for valuable advertising dollars, and the upfronts have been going strong since the 1950s, even during periods of economic decline.
This year, the traditional upfront system is in for a radical change: Enter the Digital Content Newfronts, or simply the Newfronts. It’s the upfronts, but for digital content, and instead of being held in a cramped back room, it’s taking place under the bright lights previously accorded only to traditional programming.
Online content is the wave of the future, they say, and that wave has fully arrived. A dramatic spike in viewer interest in such content is being accompanied by an unprecedented increase in buys; it’s estimated that spending for online advertising will increase 52% in 2012. Along with conventional content offered in digital format, like television shows and movies available for streaming on sites like Hulu, digital producers are also making online-only content, which will be an important part of the newfronts presentations as well.
Excitement over the newfronts, scheduled to occur in late April, highlights some radical shifts in television and the provision of online media. Networks initially embraced online content, seeking new distribution venues for their productions, and later began to withdraw when they realized that few people were willing to pay for content they could get for free, and advertisers were having trouble adjusting to the new model. The same struggle has been seen in print media, which has had a rough time adapting to the digital revolution; every week, a new obituary for traditional print media is published, fingering digital content as the final nail in the coffin.
As networks began to get cold feet when it came to providing content online for free, they started delaying online releases of their shows, limiting the size of online archives, and pushing for subscription systems. A predictable consumer rebellion resulted, and networks had to think more creatively when it came to ways to draw in new viewers and hold their existing base while keeping their profits strong. Networks realised that far from being a niche market, digital content was its own market force, and they needed to adapt fast if they wanted to keep viewers hooked.
Meanwhile, independent content producers were taking to the Internet by storm. With radically lower budgets, they could afford to quickly produce ongoing serials as well as documentaries, one-offs, and other content. By using the Internet for distribution, they could rapidly build large audiences and create strong media platforms to use for launching other products. Early adopters were richly rewarded in the digital world, and providers like Hulu started to catch on to the phenomenon.
An explosion of digital-only programming from large networks has been the result. They’ve gone from web miniseries and other supplementary content for currently-airing shows to web exclusives, launching entirely new productions solely online. Viewers can catch them on a variety of devices and with an assortment of websites, but one place they won’t find them is on their television. With the shift in presentation of content has come a demand for advertisements better suited to this platform, and that’s where the newfronts come in.
Like the upfronts, the newfronts provide an opportunity for networks to strut their stuff and show advertisers what they’ve got. And they provide an opportunity for advertisers to learn more about the potential of digital content; the entire format of the presentations will be radically different from the upfronts, to underscore the shift in content, style, and presentation—as well as showing advertisers what they can do with digital media.
Digital content provides far more opportunities for user interaction, and that can translate into major advertising dollars for digital content providers who are ready to work with advertisers on multimedia projects. Why just air a static ad when there are so many other opportunities, like providing games for users to play and driving traffic directly to the advertiser by helpfully offering to pause the video while the consumer checks out another website? For advertisers, who are constantly seeking new ways to target audiences jaded by traditional advertising approaches, the newfronts will open a whole new world.
The newfronts are also highlighting the growing trend of partnerships for sponsored content. Advertisers and creators are making series together, interweaving brands with entertainment to create advertainment at an entirely new level.
Not everyone is delighted about this. The line between advertisements and entertainment is becoming blurrier by the second, and there are growing concerns about the ethics of such presentations and the ability of viewers to distinguish between content and ads. From this perspective, the newfronts are more like an opportunity for advertisers to probe new possibilities in propaganda production. By entangling ads and content so thoroughly that they cannot be distinguished, advertisers stand to win over unwary audiences, including those who might otherwise avoid advertisements.
I’ll be watching the newfronts closely, because they’re going to include some interesting revelations about the future of online media and advertising.
It is true that digital contents provide the best opportunities for user interaction. It sure helps to translate into a lot of monetary value if you are able to use it wisely and effectively.