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NBC to Advertisers: 'Here's All Your Money Back'

http://real-us.news.yahoo.com/s/nm/20071211/tv_nm/nbc_dc

Further evidence that large media conglomerates are
dying a slow death... underscoring the likes
that Google, CJ, LinkShare and other performance-based
networks grasp consumer-reality today. - by MaxReferrals
Max;

A few questions if you do not mind ...

- How is the falling ratings of NBC related to "consumer reality"?

- Since the article states they have had this situation regularly, that they just gave away more "inventory' but none of the networks have any to give away, thus the need for a refund, it would indicate that advertisers are buying lots of ad time, meaning advertising works (not that this is a sales topic, rather a marketing one) ... so, I am still missing to connection with consumers, if all ad space is sold, what is this changing reality?

Perhaps, and this is just a suggestion, the network aired shows people did not like. The numbers of viewers therefore dropped and, based on lower number of impressions, they had to refund - but only because ad space was sold.

This article has nothing to do with whether TV sells, net the way I read it. Here is the quote that seems to put it in a nutshell;

NBC used to be the upscale, quality network," she added. "We have come to expect quality, iconic programming. Maybe they are searching for the reality hit they don't have, their own 'American Idol.' But too much reality just doesn't play well with advertisers.
This does not read "changing reality" at least not in my opinion, maybe "too much reality".

And this quote;

Added MediaVest senior vp group director Ed Gentner: "No one (advertiser or agency) wants to see too much reality programming on TV. But broadcast television has changed, and reality is part of today's landscape."
I am sorry, I am missing the point. I doubt TV-viewer-ship is down at all, probably going up with growing population. More likely mismanagement issues here ... not any "slow death". - by Gold Calling
Ask any business owner in the trenches paying the bills,
fighting for payroll and managing cash flow their preference:

Scenario 1:

Pay $50,000 for 13 weeks of spots
and hope you get responses and lead flow.


Scenario 2:

Pay a premium for each lead who has already
told you they are interested in your products.

Answer is obvious, which is why performance-based
biz models are now dwarfing revenue and earnings
figures of the old-skool media minds. - by MaxReferrals
MAX;


While I am not disputing what you say, I am having a severe issue with making the connection between this;

Ask any business owner in the trenches paying the bills,
fighting for payroll and managing cash flow ...
... and NBC.

I know of no business in the position above that advertises on a national network. Furthermore, I know of many businesses that do not advertise even on their local TV stations and make outrageous profits, without adopting a referral only system.

Hey, referrals are awesome, do not get me wrong. That is NOT my point. And, no doubt, there are many struggling businesses too (and always will be, or there would be more supply than demand) but your thread attempted to show as proof a common occurrence on network - national television, which uncommonly is so booked with advertising they could not do what they usually do; give away inventory (more advertising) in compensation for the low exposure, which I might add was based on poor content decisions by the network and not a wide sweeping change in consumers.

If there is an all encompassing change in consumers, which I might well question too, I think you had better pick a more sound piece of supporting evidence than this one. And, please, I am saying this as a caring human being. Put simply, we need a better argument Max.

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