Paramount Global sees volume increase for CBS Primetime

The hottest place to be on TV may not be traditional television, but World Paramount managed to make the medium look pretty cool.

Despite a faltering economy and increased interest in video streaming, Paramount Global expects to generate more advertising dollars for the SCS prime-time schedule than last year. The company has largely completed its in the front trade negotiations, according to a person familiar with the matter, and expects to see advance advertising commitments increase by at least 10%, according to a person familiar with the matter. The company also expects advance ad engagements to increase for digital sites such as Pluto and Paramount Plus.

In 2021, CBS may have seen its primetime commitments total between $2.03 billion and $2.64 billion, according Variety estimatesup from $2.03 billion and $2.51 billion in 2020. If volume were to increase by at least 10%, it’s possible CBS got between $2.23 billion and $2.9 billion for CBS’s primetime schedule for the 2022-23 season.

The nation’s major television networks are trying to secure advertising deals for their next season of programming as Madison Avenue keeps tabs on a falling stock market and worries about the prospect of a recession. NBCUniversal earlier this week said its initial volume was “comparable” to what he got next year, while the CW recently concluded initial sales with digital but primetime volume gains that were flat with 2021. US TV networks try to sell most of their commercial time for their next programming cycle in this annual market.

With Madison Avenue’s worrisome economy, the networks haven’t overemphasized the massive increases in CPMs, or the cost to reach 1,000 viewers, that they were seeking last year. Paramount Global has been looking for CPM increases of between 8% and 9%, according to people familiar with recent discussions, for both broadcast and cable inventory. Last year, with advertisers eager to spend following the shutdown required by the coronavirus pandemic, networks pushed for CPM rates between 16% and 22%

Paramount’s CPM strategy was key to its volume haul, this person says. The company tried to place itself just below the increases sought by its main rivals, in an attempt to generate more commitments for its programming. CBS offers some of the most-watched television programs, including “NCIS”, “FBI”, “Blue Bloods”, “The Equalizer” and “Young Sheldon”, and media agencies saw an opportunity to attract large audiences for their advertising clients without having to capitulate to higher increases in CPM elsewhere. The company was also able to use the success of “The Late Show With Stephen Colbert” to generate advertising deals and saw volume increase with every part of the day.

In recent remarks, Paramount Global CEO Bob Bakish said the company noticed that “some of our competitors were doing some things, which were probably too aggressive on the linear pricing side, because we’ve seen agencies add digital volume as advances increased. So, I’m very happy with that… We’re happy with the result. And I think you’ll see us doing very well from that.

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