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.





  [april 2018]  
S
M
T
W
T
F
S


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





[04/20/18 - 09:15 PM]
"Grey's" Goes for 15 - ABC Renews Its Longest-Running Primetime Drama for a Historic 15th Season
"'Grey's Anatomy' has a special place in my heart and millions of viewers feel the same way," said Channing Dungey.

[04/20/18 - 01:08 PM]
Noah Emmerich Has Been Cast as "Dan Peleg" in "The Spy"
"The Spy" is a Netflix limited series exploring Eli Cohen's (Sacha Baron Cohen) role as a spy for Israel in Syria in the early 1960s.

[04/20/18 - 01:04 PM]
Sarah Jeffery Returns as Audrey in "Descendants 3"
Directed by Emmy(R) and DGA Award-winning Kenny Ortega, "Descendants 3," a Disney Channel Original Movie, begins production next month for a 2019 premiere.

[04/20/18 - 11:01 AM]
Disney Junior's "Muppet Babies" Grows to New Series Highs
Disney Channel further spins the numbers for Friday, April 13.

[04/20/18 - 10:58 AM]
"Detroiters" Returns for Season Two with Back-to-Back Episodes on Thursday, June 21 at 10:00 P.M. ET/PT
The Comedy Central series stars real-life best friends and Detroit natives Sam Richardson and Tim Robinson as small-time ad men in the Motor City.

[04/20/18 - 09:22 AM]
MTV and Gunpowder & Sky Announce New Series "Too Stupid to Die" Premiering June 2018
"'Too Stupid to Die' is the right kind of show and characters who fit our coming of age strategy that's driving MTV's growth," said Chris McCarthy.

[04/20/18 - 09:05 AM]
Mobile Game "Broad City: High Score" Available for Download Today
Fans can navigate their way through New York, playing a series of rapid-fire, skill-challenging mini-games inspired by hilarious moments from the show.

[04/20/18 - 08:33 AM]
Thursday's Broadcast Ratings: CBS Holds Off Surge from ABC, "Scandal" Finale
The Eye wins the night among total viewers and adults 18-49.

[04/20/18 - 08:07 AM]
"The Great American Read," A New Multi-Platform PBS Series, Reveals List of America's 100 Favorite Novels
The series, hosted by television personality and journalist Meredith Vieira, launches with a two-hour episode on Tuesday, May 22 at 8:00/7:00c.

[04/20/18 - 08:06 AM]
"Friday Night Lights" Now Streaming on Hulu
Fans can now head to Hulu to watch every episode of the acclaimed series, and relive their favorite moments from Coach Taylor & Tami, as well as all of the Dillon High School football team.

[04/20/18 - 08:02 AM]
Season Three of "David Tutera's Celebrations" Returns with All New Episodes Friday, April 27 at 10PM ET/PT on WE tv
With new hires to watch over, and new celebrity clients including Zendaya, Heidi and Spencer Pratt, and Buddy Valastro, the event planner extraordinaire has his hands full.

[04/20/18 - 07:27 AM]
Video: Light Up This 4/20 with Season 2 of IFC's "Brockmire"
The show's season premiere, "The Getaway Game," is now available to watch on various platforms in advance of its linear debut.

[04/20/18 - 07:19 AM]
Video: Netflix Unveils Trailer for "Safe," As Michael C. Hall Returns to Television in Harlan Coben's Crime Thriller
After his teenage daughter goes missing, widowed surgeon Tom Delaney (Michael C. Hall) begins unearthing dark secrets about the people closest to him.

[04/20/18 - 06:00 AM]
ABC's "Jimmy Kimmel Live!" to Host Special "Avengers: Infinity War" Week, April 23 - April 27
The guest lineup includes the film's stars: Robert Downey Jr., Tom Holland, Zoe Saldana, Pom Klementieff, Paul Bettany, Scarlett Johansson, Tom Hiddleston, Dave Bautista, Mark Ruffalo, Danai Gurira, Chris Hemsworth, Josh Brolin, Sebastian Stan, Chadwick Boseman, Karen Gillan, Benedict Cumberbatch, Don Cheadle, Elizabeth Olsen and Winston Duke.

[04/19/18 - 06:48 PM]
FOX Sports Ushers in 25th Season of NFL Coverage with Its Strongest Broadcast Schedule Ever
FOX's strong 2018 regular season schedule features 35 NFC divisional matchups - 10 from the NFC South, nine each from the NFC North and NFC West, and seven from the NFC East.