Despite alarm bells around the uncertain state of the economy, the outlook for this year’s TV upfront ad market may not be as grim as it feels. Client budgets are generally healthy, multiple media buyers told Ad Age, but a confluence of external factors are weighing heavily on typically strong categories—the economy being just one.
Related: See the 2023 TV upfronts and newfronts calendar
By seller accounts, the market is still growing. Over the past month, the major media companies each reported their earnings from the final quarter of 2022, with the majority showing year-over-year increases in advertising revenue. Both Fox and NBCUniversal reported increases in TV advertising, while Disney showed a decline across its media assets. Both Paramount and Warner Bros. Discovery saw an increase in ad revenue for their streaming assets, but a decline in linear advertising.
“When people say, ‘Are you seeing budget declines because of a recession?’ The answer is no,” said one buyer. “But are we seeing budget declines in some categories? Yes.”