or


[10/06/09 - 11:31 PM]
The 10 Things You Need to Know About the New Season: #7 - Ads Pay the Bills
By Brian Ford Sullivan (TFC)

Please note: As a courtesy, please do not reproduce these comments to newsgroups, forums or other online places. Links only please.

Welcome once again to "The 10 Things You Need to Know About the New Season," our annual feature about, well... the 10 things you need to know about the new season. The goal of this venture is to address not only common questions people have about television but to also demystify (or potentially reaffirm) stigmas out there about certain networks, time periods, genres and so forth. So with that in mind let us put on our journalistic caps and give you the cold hard truth about what's potentially ahead for some of your favorite new and returning shows...

7. Traditional advertising still matters the most.

It's estimated that the broadcast and cable networks made a collective $67.92 billion off of advertising revenue in 2008. Want to guess how much of that was online advertising? 20%? Nope. 10%? Try again. 5%? Wrong. The correct answer: 2.4% ($1.63 billion). That's right, for all the hubbub over streaming sites like Hulu and Fancast, the fact is they only bring in a small fraction of the revenue generated by traditional 30-second spots. What about DVDs? Rentals and sales of TV shows on DVD are pegged at $450 million for 2008. And iTunes? Digital downloads accounted for just $180 million in revenue in 2008. Here's a visual representation of those numbers*:

traditional advertising - $66.29 billion
online advertising - $1.63 billion
dvd - $450 million
iTunes - $180 million

In other words, no matter how well a show is doing on iTunes, Hulu and DVD, it's not even in the same ballpark as what it earns from traditional commercial advertising. This is why so much focus is still placed on those pesky Nielsen numbers. It's the only barometer to determine who's being exposed to those ads.

Now, I'm sure you'll say, what about DVRs? 33% of all households in the U.S. have them. The answer: Nielsen already accounts for that. In the fall of 2007, Nielsen rolled out what's known as C3 ratings. These numbers look at the average viewership of the commercials themselves viewed within three days of their initial broadcast. The end result: there's not much difference between the C3 numbers and the ratings you're exposed to here on the site every day.

That, coupled with the fact that 30-second spots are sold with a certain C3 guarantee, and you have the primary reason why shows get canceled. If a show is falling short of its promised C3 audience, networks have to give out refunds or make goods (a.k.a. free ads). It doesn't matter if there's still episodes in the can or the show's story is incomplete, once a show is making a network give money and/or time back to the advertisers it's a major liability.

So what's the lesson here? When the sting of cancellation strikes some of your favorite shows in the coming weeks, it's important to keep in mind it's just business. And for now that business is ad dollars made via commercials, not iTunes, Hulu or DVD.

TOMORROW: Who is the average TV viewer?

* All numbers are taken from "The Battle for the American Couch Potato: New Challenges & Opportunities in the Content Market" by the Convergence Consulting Group.





  [march 2015]  
S
M
T
W
T
F
S


· SHOWATCH
(series past and present)
· DEVWATCH
(series in development)
· MOVIEWATCH
(tv movies and mini-series)











[02/28/15 - 08:57 AM]
Friday's "Dateline" Increases by 20% vs. Its Prior Telecast to the Show's Top Rating Since January 30
NBC spins the numbers for Friday, February 27.

[02/28/15 - 08:47 AM]
Friday's Broadcast Ratings: ABC Continues Its Demo Reign
"Last Man Standing" takes the top spot among adults 18-49 last night.

[02/28/15 - 08:37 AM]
ABC's Is #1 on Friday for 8th Straight Week with "Last Man Standing" and "20/20" the Top 2 Shows
ABC spins the numbers for Friday, February 27.

[02/27/15 - 03:09 PM]
Statement From E! Entertainment Regarding Kelly Osbourne
Osbourne is departing E!s "Fashion Police" to pursue other opportunities.

[02/27/15 - 01:19 PM]
Discovery Channel Tops Cable Prime Time for Men and Ranks in the Top 10 for Women and Persons 6-11 in February
Discovery spins the numbers for the month to date.

[02/27/15 - 01:01 PM]
ABC Family Orders a Fifth Season of Hit Original Comedy Series "Baby Daddy"
The order came just as production has wrapped on the series' fourth season.

[02/27/15 - 12:47 PM]
Discover the Fascinating World of the Ocean's Most Intelligent Creatures in "Dolphins: Spy in the Pod" Airing Saturday, March 7 at 8 PM ET/PT on the Discovery Channel
The hour-long journey will discover the relationships and habits of bottlenose and spinner dolphins, some of the world's most playful, clever and beloved animals.

[02/27/15 - 12:45 PM]
Syfy Will Pay Tribute to Science Fiction Icon Leonard Nimoy with Special Five Hour Programming Salute This Sunday, March 1 from 9AM-2PM
Said lineup includes an episode of the original "Twilight Zone" series; his guest star arc on "Star Trek: The Next Generation," and the final Star Trek original cast movie, "Star Trek 6: The Undiscovered Country."

[02/27/15 - 11:06 AM]
ABC's "American Crime" Post-Show Podcast Series to Launch Exclusively on PodcastOne
The podcast debuts today with a preview of what to expect in the television series, followed by weekly post-show episodes taking fans through the final episode of the season.

[02/27/15 - 10:23 AM]
Time Period-Winning "The Odd Couple" Retains Solid 90% of Its Premiere Adults 18-49 Rating
CBS spins the numbers for Thursday, February 26.

[02/27/15 - 10:17 AM]
MTV Renews "Are You the One" for Season 3, "The Challenge" for Season 27 and Greenlights Pilots "Girl Code Live" and "Greatest Party Story Ever" to Series
"Girl Code Live" is a live weekly talk show from the popular "Code" franchise; and "Greatest Party Story Ever" is a half-hour weekly that will showcase peoples' most outrageous epic tales.

[02/27/15 - 09:57 AM]
OWN: Oprah Winfrey Network Orders New Episodes of All Four of Its Popular Tyler Perry Series
"The Haves and the Have Nots," "If Loving You is Wrong," "Love Thy Neighbor" and "For Better or Worse" are all due back.

[02/27/15 - 09:30 AM]
NBC News' Peacock Productions Signs Deal with Exoneree Brian Banks to Develop New Unscripted Series
The unscripted series will investigate one potential case of wrongful conviction.

[02/27/15 - 08:46 AM]
Despite Special Competition from the "Murder" Season Finale, "Blacklist" Grows 6% Week to Week
NBC spins the numbers for Thursday, February 26.

[02/27/15 - 08:31 AM]
ABC Wins Its 5th Consecutive Thursday Night Among Adults 18-49
ABC spins the numbers for Thursday, February 26.