This year, TV advertisers are prepared for significant proposals, though not many minor ones.
On Monday, NBCUniversal is set to launch the media industry’s annual “Upfront Week” with a spotlight on the NBC broadcast network’s 100th anniversary and the introduction of three types of sports events on Sundays. While NBC, recognized for series like “Law & Order” and “Saturday Night Live,” will likely highlight new shows, Madison Avenue is urging NBC and its competitors to make substantial offers before advertisers decide whether to invest millions of dollars with them or elsewhere.
As streaming services continue to fragment traditional TV audiences into smaller groups, advertisers are actively seeking platforms capable of delivering large audiences. Companies unable to provide this are unlikely to succeed in the “upfront,” the yearly marketplace where U.S. TV companies aim to sell most of their commercial slots for the upcoming programming cycle.
According to a TV sales executive, “People who don’t have a lot of growth and who have lackluster streaming may have a harder time getting dollars this year.”
TV networks face considerable pressure to satisfy their sponsors. Over the last three years, advertisers have reduced their budgets for broadcast and cable TV. Media Dynamics, a consultancy monitoring upfront negotiations, noted that broadcast primetime ad commitments for 2025 dropped 2.5% to around $9.1 billion, down from $9.34 billion in the previous year. Cable commitments decreased by 4.3% to about $8.68 billion, compared to nearly $9.1 billion previously. Meanwhile, funds allocated for streaming surged by 17.9% to $13.2 billion, up from $11.2 billion in the 2024 upfront.
One media buying executive explained that marketers are eager to invest in programs that can still attract large audiences simultaneously. However, there is limited commercial inventory for “large tentpole events, big cultural events and sports,” and “the big upfront conversations are taking place where there is scarcity.”
Disney’s recent actions reflect these discussions. The company is asking for $10 million for a 30-second advertisement in next year’s Super Bowl LXI, which will be aired on both ABC and ESPN on February 14, 2027. This price is higher than expected at this stage of the Super Bowl sales process, leading some media agencies to push back, according to insiders familiar with the negotiations.
Many media companies are likely to prioritize sports and special events, as they can command the highest prices for major games, award shows, and unique events. Recently, some of TV’s biggest advertisers have shifted more of their budgets toward sports, even if they previously focused more on dramas and comedies. Alan Moss, vice president of global sales for Amazon Ads, stated, “We are excited about this space, and we have proven that we can bring new advertisers to live sports,” citing the addition of over 80 new brands to Amazon’s “Thursday Night Football” and over 30 new advertisers to its first year of NBA stream casts. “We think live sports will continue to be an important area.”
Disney has also emphasized its growing focus on live events. In 2027, Disney’s TV and streaming platforms will showcase the College Football Playoffs, the Oscars, the Grammys, and Super Bowl LXI over eight weeks — marking ABC’s first airing of the Super Bowl since 2006.
Despite these efforts, traditional TV’s capacity to attract more advertising dollars than in the past remains questionable. As more viewers transition to streaming platforms, advertisers are likely to follow. Brian Wieser, who analyzes ad spending for Madison & Wall, noted, “The new streaming companies have a large share of inventory that they should be able to monetize through advertising, and it will come at the expense of the incumbents.”
MoffettNathanson, an independent research firm, projects that cable ad revenue will decline by 10% in 2026, while broadcast ad revenue is expected to rise by 5%, mainly due to the Winter Olympics and the migration of NBA games from Warner Bros. Discovery’s TNT to the NBC broadcast network. The firm also reports that the majority of new ad dollars, which once went to TV, are now flowing to digital giants: “Over the last decade, Google, Meta, Amazon, and Microsoft alone accounted for virtually all (96%) of the U.S. ad spend growth. These four platforms now capture 65% of total U.S. ad spend, a share we expect to reach 72% by 2028.”
Regardless of the size of the efforts from traditional media outlets, they may only result in incremental progress.
