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.





  [october 2014]  
S
M
T
W
T
F
S
   


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











[10/20/14 - 12:42 PM]
Discovery Fit & Health Pulls Back the White Curtain on Outrageous Medical Emergencies When "Untold Stories of the ER" Returns with the Craziest Cases Special and 100th Episode
The 100th episode kicks off all-new episodes, beginning Friday, November 14 at 10:00/9:00c.

[10/20/14 - 12:22 PM]
Three Families Are "Risking It All" for a Life Off the Grid
TLC's latest original series premieres Tuesday, November 18 at 10:00/9:00c.

[10/20/14 - 12:22 PM]
"Real World: Skeletons" Set to Premiere December 16, 2014 at 10:00 PM ET/PT on MTV
This season, the series begins in the traditional way with seven strangers moving into an old nightclub turned fabulous urban loft in Chicago's West Loop, but each of these roommates has skeletons in their closets.

[10/20/14 - 12:18 PM]
USA Network Orders Third Season of Breakout Comedic Reality Series "Chrisley Knows Best"
Plus: look for a half-hour "Chrisley" holiday special set for this December.

[10/20/14 - 12:10 PM]
Ariana Grande and Meghan Trainor to Perform Duets with Top Country Acts on "The 48th Annual CMA Awards"
Grande will be joining two-time CMA Vocal Group of the Year Little Big Town for an on-air collaboration.

[10/20/14 - 11:51 AM]
ABC Family Invites Fans to Tweet the "Dearly Departed" During a Halloween Special of "Pretty Little Liars," Airing Tuesday, October 21
Janel Parrish ("Mona"), Andrea Parker ("Mrs. DiLaurentis") and Bryce Johnson ("Det. Darren Wilden") will live tweet with fans during the East Coast broadcast.

[10/20/14 - 11:49 AM]
"Untold with Maria Menounos" Premieres Thursday, October 30th at 8:00PM ET/PT
The series takes a closer look at two major entertainment stories that are making headlines today: the Transgender movement and Depression in Comedians.

[10/20/14 - 11:06 AM]
Live + 7 Ratings: ABC's "How to Get Away with Murder" Is the Week's #1 Biggest Gainer in TV Playback in Adults 18-49
ABC further spins the numbers for the week of September 29-October 5.

[10/20/14 - 11:04 AM]
A Wedding, a Breakup and a Divorce?! Don't Miss the "Total Divas" Mid-Season Finale Sunday, October 26 at 9pm ET on E!
Plus: WWE(R) Diva Alicia Fox(TM) and WWE Diva Paige(TM) joint the cast when new episodes resume Sunday, January 4 at 10:00/9:00c.

[10/20/14 - 10:55 AM]
CBS Freshman Dramas Post Strong Second-Week Live +7-Day Lifts
CBS further spins the numbers for the week of September 29-October 5.

[10/20/14 - 10:40 AM]
Pizza Aficionados Sal Basille and Francis Garcia Return to Travel the Country on a Culinary Expedition in Cooking Channel's "Pizza Masters"
The six-episode series launches Friday, December 5 at 9:00/8:00c on the network.

[10/20/14 - 10:19 AM]
FX Networks to Unveil "Simpsons World" October 21
It will include instant and on-demand access to every single "Simpsons" episode - all 552 episodes (25 Seasons) - and each new episode from the current 26th season will be available for viewing the day after its original broadcast on FOX.

[10/20/14 - 10:01 AM]
Disney-ABC Announces ABC Owned Station Group as Launch Partner for Upcoming Syndicated Daytime Talker "The F-A-B" (Working Title) with Tyra Banks
Chrissy Teigen, Joe Zee, Lauren Makk and Leah Ashley will co-host the series, due in the fall of 2015.

[10/20/14 - 10:00 AM]
In a Straight-to-Series Order, FOX Greenlights First Comedy-Horror Anthology, "Scream Queens"
The series, produced by 20th Century Fox Television, is from Ryan Murphy, Brad Falchuk, Ian Brennan and Dante Di Loreto.

[10/20/14 - 09:55 AM]
James Denton to Star in "The Good Witch" Alongside Catherine Bell and Bailee Madison in Hallmark Channel's Newest Original Primetime Series Based on the Network's Most Successful Original Movie Franchise
Denton will play Cassie's new next-door-neighbor, a divorced doctor and single dad who stirs things up in Middleton when he discovers Cassie's signature charm is more than just a magic touch.