Would you invest in the “Upfront” today?

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In an effort to stress the importance of change and the relevance of how VIDEO (no longer just TV) is being consumed I am going to present you (my potential investors) with a business plan that is currently in place within the advertising television buying community, and ask if you would please invest.

[begin cynical business plan rant]
Objective:
Create a positive competitive buying environment in which an agency can pool their budgets together in the most powerfull of ways to purchase television time ahead of (12 months in advance) of the upcoming calendar year. This will not only provide buying power to the client – but allow networks to benefit from planning ahead of time to include added value and bonus packages to the client – thus making everyone happy.

Abstract or Executive Summary or Elevator Pitch 🙂
By purchasing television in advance (or providing the money UPFRONT) clients will be able to manage their outflow of cash in a fiscally responsible way and allow the bean counters to allocate dollars appropriatley. Given the static nature of the terms the invoicing will be decided 12 months in advance and be allowed changes on a quarterley basis only.

Business Model:
By having 1 large client enter into this scenario we believe the rest will fall like dominoes. Once major agencies enter into this process there is NO END IN SIGHT to how long this process could continue for. This process also involves a massive snowballing effect that would make it VERY DIFFICULT TO CHANGE in the future. For example once the system is in place and the networks are on board – it would not be in the best interests of the clients or the networks to change the format of this process. For this reason it makes adaptability and innovation difficult. There would be little or no chance of a competitor or system breaking the model once most large advertisers and all major networks onboard.

Competition:
No small agency or client will have the power to play in the same sandbox once this system is in place. Getting all the large clientsnetworks involved will be easy once the roadmap to profits is put before them.
[/end cynical business plan rant]

Now, my sarcasm aside, I stressed some of the details of what goes on to show the lunacy of this process. No one in their right mind would allow this business model to proceed today. I can understand that those who fear change would allow this to continue for some time, but it has gone too far.

Do I have a silver bullet solution? Absolutley not. BUT, my goal is to generate some intelligent dialogue about this problem at hand.

So with that being said…Would you invest today?

[tags] the upfront, marketing.fm, upfront, television buying, media planning, networks, fox, abc, nbc, upn, wb, advertising agencies [/tags]

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