Future of TV Briefing: How TV and streaming networks are laying the groundwork for outcome-based buying

Outcome-based buying is not expected to enter the television and streaming upfront marketplace this year, as media sellers and advertisers continue to navigate an iterative transition period. While major networks are testing conversion-focused ad products, industry leaders indicate that the market currently lacks the standardized benchmarks and control necessary to transition away from traditional transaction models.

Did You Know? The average YouTube account spends approximately 99.1 minutes each day watching content on the Google-owned video platform.

The Current State of Outcome-Based Transactions

While brands are increasingly seeking performance data, the television industry remains largely committed to traditional buying methods. According to Robert Voltaggio, president of advertising sales at Warner Bros. Discovery, the shift toward outcome-based buying is an iterative process that requires both buyers and sellers to gain deeper comfort with new metrics before they can serve as a primary currency.

Paramount is currently testing an ad product called Precision+, which allows brands to track conversion outcomes such as website visits or qualified leads. However, Leo O’Connor, executive vice president of streaming at Paramount’s advertising division, noted that the company is not currently charging based on these outcomes. Instead, they are transacting on a traditional basis while working against established benchmark conversion targets.

Why Digital Metrics Do Not Translate to TV

Experts argue that the digital advertising model, where publishers are paid for specific user actions like clicks, does not easily apply to the television and streaming landscape. Evan Adlman, executive vice president of commercial sales and revenue operations at AMC Global Media, stated that for the majority of categories, the market is not ready for the type of outcome-based transactions traditionally defined in digital advertising.

Television and streaming sellers face challenges that digital publishers do not, such as viewers rarely clicking on ads and external economic factors—including retail stocking issues or global economic shifts—that impact sales performance. John Kozack, president of U.S. advertising sales and marketing at TelevisaUnivision, emphasized that sellers can only control a limited number of variables, making it difficult to guarantee specific outcomes.

Expert Insight: The industry’s focus on “benchmarks” suggests that the future of TV advertising will likely center on measuring broad impact, such as sales lift, rather than individual click-throughs. By establishing these historical baselines, networks are attempting to provide the transparency advertisers need to justify budgets without assuming the financial risks of guaranteeing specific consumer actions.

What Happens Next in the Upfront Market

Analysts expect that the current testing phase will serve as a foundation for future years. As networks gather data through beta programs, they are building the historical baselines necessary to eventually transition these measurements into “currency-grade” data.

In the immediate term, ad buyers report that while budgets are down, sellers are holding firm on pricing. Sellers are choosing to write what they can in the upfront market while planning to address remaining inventory through the scatter market. This strategy reflects a cautious approach as the industry continues to move toward a more results-oriented, data-driven future.

Frequently Asked Questions

Why isn’t outcome-based buying being used in this year’s upfront?
According to industry executives, the market is not yet ready for traditional outcome-based transactions because there is a lack of standardized benchmarks and an need for both buyers and sellers to become more comfortable with these metrics.

How does television’s approach to outcomes differ from digital advertising?
Unlike digital advertising, where publishers are paid for specific user clicks or actions, television sellers are focusing on “benchmark” targets and measuring broader impacts like sales lift, as they cannot control external factors like retail inventory or global economic conditions.

What is the purpose of testing products like Paramount’s Precision+?
These products are being used to provide reporting on outcomes, which advertisers currently view as “table stakes.” These tests help sellers create historical baselines that may eventually allow for outcome-based buying to become a primary currency for future transactions.

Are you seeing a shift in how brands measure the success of their television campaigns compared to previous years?