Ad Age is reporting that the upcoming Digital Newfronts in New York City could see an ad dollar haul of $1 billion or more this year. Mainly because it is estimated that in last year's event, the money was estimated to be in the hundreds of millions, and this year, it's expected to increase due to TV's lower ratings and higher prices. The other thing Ad Age mentions is that this year's Newfronts are controversial mainly due to the fact that it's hard to classify what exactly this event is, considering that non-video companies like game-maker Zynga is going to be there, along with blog network SpinMedia.
$1 Billion...But Not All of It Is Going to Video
It's a magical threshold, isn't it? A billion dollars. You've hit the big time, you're no longer at the kiddie table. You're making the big boy bucks when you get to the billions. However, with anyone in the digital space coming out and showing what they have to offer, and grabbing a piece of that pie, video can't actually claim that all to itself. With smartphone and tablet games/apps wooing advertisers too, the Digital Newsfront estimates are going to be extremely hard to quantify for video alone.
There are many who believe the Digital Newfronts should be all about video, but it appears that the event will at least be mostly video. Still, big players like NBCUniversal and huge online video network Machinima are bypassing the event to throw their own upfronts. I'm guessing that's pretty smart. If you're big enough and can attract enough advertisers, why not hold an event where you're not competing with a wide array of digital content?
The Digital Newfronts happen April 29-May 3 in New York City For more about the event and the controversy around it, give the Ad Age article a look.