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Topic: RE: Bowl ratings

Topic: RE: Bowl ratings

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Pataskala
General User

Member Since: 7/8/2010
Location: At least six feet away from anybody else
Post Count: 9,152

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RE: Bowl ratings

Posted: 1/9/2020 11:45:53 AM

L.C. wrote:

Alan Swank wrote:

And where have you seen where bowls had to deliver refunds?

This article is about Pro Football, but the same thing no doubt applies to bowls:
https://www.chicagotribune.com/business/ct-nfl-viewership...

chicago tribune wrote:

...When TV networks sell commercials, they guarantee advertisers a certain number of viewers. If they don't fulfill their promise, they must offer free commercial time elsewhere to make up for it, potentially missing out on revenue from selling those ad spots instead.
...

So, "refund" was probably a poor word choice, since they don't actually give the cash back. Instead they give additional advertising so that the advertiser gets the exposure he was promised. In real life, that's about the same thing. If ESPN is giving away free ads that they could have sold, it's costing them real money.

Even at the local level, if a media company fails to deliver the market they promised, it is typical to "comp" the advertiser. Media companies are not looking for a one-time sale to an advertiser; they want happy advertisers who continue to buy, so they treat them fairly, and that means comping them when necessary.

I seriously doubt that ESPN or any media company loses money by running comp advertising to meet their ratings guarantee. Usually they preempt one of their own promo ads or move some other advertiser that bought preemptable time. January is a particularly bad time for most media outlets because most advertisers spend huge amounts to attract Christmas customers, then pull back in January when business usually isn't so good anyway. Media outlets usually have a lot of unsold inventory after Christmas so making up for ratings shortfalls usually isn't a problem.

We will get by.
We will get by.
We will get by.
We will survive.

L.C.
General User

Member Since: 8/31/2005
Location: United States
Post Count: 10,067

Status: Offline

RE: Bowl ratings

Posted: 1/9/2020 12:45:17 PM

Pataskala wrote:

It's certainly true that they have unsold inventory in January, but mostly on programs with lower ratings than the bowls were expected to have. The bowls with ratings off 5-15% should not be a problem, but ESPN can not be happy with bowls that were off 40-50%.

�We have two ears and one mouth so that we can listen twice as much as we speak.� ― Epictetus

cc-cat
General User

Member Since: 4/5/2006
Location: matthews, NC
Post Count: 3,821

Status: Offline

RE: Bowl ratings

Posted: 1/9/2020 12:52:53 PM

ESPN sells the majority of spots in their bowls as part of a package. With the exception of the Boise ads, all the other ads in the broadcast were part of a larger buy. In fact, most were probably "bonus" spots that were simply put in the rotation for advertisers that run spots on other programming - e.g., Sports Center and ESPN's daytime schedule. There would be no refunds or "make goods" for these ads...even if the broadcast under performed/delivered. To the point above, as long as the audience was within a few percentage points of expectations, everyone's happy.

Tymaster
General User

Member Since: 3/24/2017
Location: Chillicothe, OH
Post Count: 210

Status: Offline

RE: Bowl ratings

Posted: 1/10/2020 11:04:52 AM

Cable sports viewing is on the decline, period. Less and less cable subscribers and ESPN and live sports in general is about the #1 reason to have a cable and/or satellite subscription in 2020. That said, the advertisers know this. There are other intangibles, as someone mentioned, to the actual Neilson ratings (which, who really knows how accurate those are??) when you factor in all of the B-Dubs of the worlds and people "borrowing" someone's streaming service password - in both cases you're getting the commercials. No cause for alarm. The bowl package is still one the uniquely unique things that only a cable/satellite channel can provide.

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