April 30, 2014
The Digital Content NewFronts are an annual event in which companies that offer digital video give marketers a preview of their upcoming programming so that marketers will consider buying commercials ahead of time. This year, the growing event featured The New York Times, AOL, Microsoft, BuzzFeed and others. Among the newest offerings, Condé Nast will announce its plans to rapidly expand its online video content at its NewFronts presentation next week.
The NewFronts are an important event for digital media companies that are still far behind the television industry in advertising revenue. According to The New York Times, “The digital-video total last year, according to the I.A.B. and PricewaterhouseCoopers, was $2.8 billion; by comparison, broadcast and cable ad revenue last year was about $74.5 billion, with more than $20 billion of that sold during the upfronts.”
Upfronts are the equivalent of NewFronts for the broadcast and cable television industry.
Digital media companies have the potential to bring in much more ad revenue because they do not have the same limitations that come with the TV platform. Broadcast networks or cable channels only have so much commercial time during desirable times or TV programs to sell.
Online video platforms, on the other hand, have almost limitless ad space to sell because there is virtually no finite number of programs that they can stream. Online video providers struggle to get marketers to purchase ads ahead of time, though, because there is “no scarcity,” according to Barry Lowenthal, president of Media Kitchen, in The New York Times.
Companies participating in this year’s NewFronts include a variety of digital media and traditional media companies. Digital video natives like Hulu, Yahoo, and Vevo are presenting with the likes of The Wall Street Journal, The New York Times, PBS, National Geographic, Time Inc., and Time Warner Cable Media.
The New York Times will introduce their plans for new video series inspired by their popular print and digital offerings, which will be featured on their redesigned video site with 14 channels. “The company has also partnered with Vimeo to develop original branded-video content for marketers,” according to Advertising Age.
Likewise, Condé Nast gave marketers a look at its new video brand, The Scene. This platform will feature video from other Condé Nast channels such as the Vogue and GQ video sites. In addition, original content from partners such as Variety, Major League Soccer, and Jash will also be offered on The Scene.