Under share deals, agencies commit a certain percentage of their client’s upfront budget with a network group.
Both TV ad buyers and sellers are exploring alternative options to start this year’s annual upfront marketplace. Some TV networks and agency holding companies have been discussing signing “share” deals to assure advertisers during the pandemic.
Share deals have become more common over the past five years as large inventories become more common in wake of TV networks mergers or acquisitions by bigger companies. Their complicated and opaque nature has meant that share deals have been less popular than traditional upfront deals.
Despite the bottlenecks, broadcasting networks are keen on discussions as they want to “jump-start the market.” Networks are also keen to avoid losing out advertising dollars to connected TV and digital video platforms.
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