News

Oscar Telecast Ad Sales Climb Again

 

By Robert Marich

   Feb. 14, 2011—Prices of commercials in the Academy Awards, after dropping slightly in recession, will again rise this year, resulting in an $80 million haul for ABC Television with the Feb. 27 telecast.
   “Last year's strong ratings for the Oscar telecast have helped to fuel sales this year,” says a Los Angeles Times story by Meg James. “An average of nearly 42 million people viewed the program last year, producing Oscar's largest audience in five years.”
   The Los Angeles Times article cites sources at ABC saying 30-second commercials are going for $1.7 million each. In the past two years, those same spots sold for $1.3-1.5 million.
   Media analyst Kantar Media estimates the Academy Awards generated a total of $720 million over the past 10 years. In 2001, ABC collected an estimated $61.6 million, compared to the roughly $80 million now as commercial rates trended upwards, with a small dip in the prior two years due to recession.

Academy Awards:

 Advertising Rates and Revenue: 2001-2010
 
Year
Avg Cost :30 Unit ($000)
Total Ad Spend ($ millions)
2001
1,450
61.6
2002
1,290
63.2
2003
1,355
65.0
2004
1,503
78.2
2005
1,503
72.1
2006
1,647
80.7
2007
1,666
80.0
2008
1,689
81.1
2009
1,307
68.0
2010
1,400
70.0
 
Source: Kantar Media
   Oscars-originator the Academy of Motion Picture Arts and Sciences (AMPAS) is heavily reliant on ABC’s license fee for its funding. Reports indicate AMPAS pulls in around $65 million from the telecast. The awards also showcases movies and the industry, providing a big publicity boost to films nominated.
   However, with academy voters tending to favor low-grossing indie films with edgy content, there were worries the telecast audience would wane, which is believed to be the reason that the field for best picture last year increased to 10 films, from five previously. Doubling the size of the films brings more blockbusters into the best picture conversation, though in any given year only three or four titles have a realistic shot to win no matter how many nominees. The Oscar voters last year selected the low-grossing The Hurt Locker, continuing a trend to pass over top grossing films most years.
   Much of the Oscar lure is the glamour and fashion, which pulls TV’s largest female audience that is a counterpoint to another huge TV event with a male tilt: pro football’s Super Bowl championship game.
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latimesblogs.latimes.com/entertainmentnewsbuzz/2011/02/abc-sells-out-advertisements-for-oscar-telecast-at-near-record-prices.html

kantarmediana.com/insight-center/news/academy-awards-spending-reached-720-million-over-10-years

www.marketingmovies.net/news/oscar-telecast-ad-sales-steady/

www.marketingmovies.net/news/slumping-ad-sales-hurt-oscars/

www.marketingmovies.net/chapters/chapter-6-publicity/