Fox News Media's advertising revenue continues to surge, with executives at Fox Corp. seeing significant further growth potential in ad pricing and overall company performance.
Fox Corp. President and COO John Nallen told Deutsche Bank investors this week, that Fox News remains underpriced by about 50% compared to broadcast television, creating clear room for pricing increases.
"That's the opportunity on pricing for Fox News to continue to move up in pricing, and we've seen that," Nallen said.
In the current scatter market, Fox News has achieved high single-digit increases in national ad rates and mid-single-digit gains in direct response advertiser rates. The network has drawn more advertisers to both its linear and digital platforms.
Looking ahead to the upfront TV and streaming selling season, Nallen described the broader Fox Corp. advertising market (including Fox Television Network and Tubi) as "really healthy." Scatter pricing is rising, with low cancellation rates and few options exercised from upfront commitments.
Nine of Fox's top 10 advertiser categories are up, including finance, pharmaceuticals, and technology; only entertainment is down.
For the rest of the year, Nallen anticipates strong demand at Fox Television Stations driven by midterm election spending. Overall, he predicts the advertising market will set records, with estimates around $11 billion across all media—led by heavy investments in local TV stations and digital platforms.