Demise of UPN network puts $100 million in black-targeted ad dollars in play

By Anthony Crupi and
John Consoli
ADWEEK
(April 10, 2006) The creation of the CW network, a consolidation of UPN and the WB, is expected to eliminate half of the ethnic sitcoms that currently air on UPN, along with a number of other UPN shows, tossing up for grabs about $100 million in ad dollars targeting African-American viewers in the upfront marketplace.

While CW entertainment president Dawn Ostroff has said the new joint network will offer ethnically diverse programming, media agency research executives and CW insiders say the new network will most likely retain more WB viewers than UPN fans. That said, the ad dollars previously spent on UPN shows with sizable black and Hispanic audiences will be looking to buy programming delivering those gross ratings points on other networks.

Viacom’s BET and Comcast-owned TV One are the most logical places for advertisers seeking targeted black audiences to look, but most media agencies say BET has done little so far to pitch them on the attributes of the network, its demos and its programming. Media buyers said BET is clearly missing an opportunity and that if it does not step up, TV One, MTV and even Fox will land those ad dollars up for grabs.

“BET is missing the boat,” said one media buyer who has clients in current UPN ethnic sitcoms, adding that the network has not yet made an attempt to secure some of those dollars. The buyer also said BET’s sales pitch is less business-oriented than many other nets. “BET tends to try to convince advertisers to buy the network in order to support the African-American marketplace rather than to sell the network based on its own demographics,” he said.

Another media buyer noted that TV One, which also targets black audiences, shows more hustle in the marketplace because it is smaller and hungrier. “That attitude is one reason why TV One was able to start up and get so much traction,” said the buyer. “TV One is more buyer-friendly.” TV One launched in January 2004 and currently reaches 28 million households, having added 4 million subs in the first quarter of 2006. BET counts some 81 million subscribers.

Louis Carr, BET’s president of media sales, said the extra dollars “are just frosting on the cake,” and added that the network’s upfront strategy will be more focused on selling against its multiple distribution platforms than simply targeting a specific demographic.

“If you look at the top 20 markets in the country where most products and services are sold, those markets are dominated primarily by African Americans,” said Carr. “So if you know you want to advertise in a Philadelphia or a Detroit, where you’ll do a lot of volume, then it’s more of a multicultural strategy.”

If BET goes for reach over targeted demos, TV One is more than willing to jump into the breach. Keith Bowen, TV One’s executive vp of advertising sales and marketing, said his team has already talked about going after those dollars in its preliminary upfront meetings.

“Our angle is to talk about a targetable audience and its unprecedented buying power,” Bowen said, citing recent research that concludes that African-American buying power will reach $1 trillion by 2010. “We have an 11 percent higher median income advantage over UPN in prime,” Bowen said. “Our audience is 87 percent black in total day, UPN is 56 percent in its prime-time lineup. We’re much more targeted.”

TV One is also willing to pick up any of the African-American shows UPN decides to drop, which Bowen pegs at anywhere from five to seven. “A lot of those shows would be a good fit for us, and there’s a lot of great stuff we think we could do with them.” TV One would not produce new seasons of any cancelled shows, as it does not have the financial reserves to launch original programming as yet. Among the UPN sitcoms not expected to return are Eve, Half & Half and One on One, none of which were cited in the CW development package given to media buyers.

Brad Adgate, senior vp, corporate research director, Horizon Media, said that while BET “is the first place a lot of people will look,” opportunities abound in mobile and broadband. “There’s the notion that African Americans are gravitating online, that the digital divide is closing,” Adgate said. “That’s a very targeted niche on a very measurable platform, and dollars may well go there instead of TV.”

Like most cable nets, BET is a big proponent of selling against non-linear platforms. “People want to touch consumers in very emotional ways that also give their brand credibility and make their brands stand out,” Carr said, noting that the ability to reach consumers via their medium of choice lends a certain personalized touch to his clients’ campaigns.

Terri McKinzie, associate media director for Starcom sister agency Tapestry, which specializes in ethnic media, said that because broadband is still in its infancy, ad dollars may pile up in syndication, against programs like The Tyra Banks Show, Girlfriends and Oprah.
McKinzie said she believes that BET may be the best place to funnel the unclaimed ad dollars, thanks to its newfound commitment to developing original programming. “They’ve made great strides on that end, and that’s very attractive to clients,” McKinzie said.

Carr echoed that sentiment: “You will see more original programming on BET than you have in 25 years, representing all genres. People are going to say, ‘Wow’ when they see what we’ve been doing.”


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