Home > Advertising > NBC to Advertisers: 'Here's All Your Money Back'

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.

Your contributions to this forum are valued. We want to know what you think and evaluate what that means to us. We would also like the opportunity to say "hold on a minute, these two things are not the same!"

I trust you understand. - by Gold Calling
MAX;


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



... 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.

Your contributions to this forum are valued. We want to know what you think and evaluate what that means to us. We would also like the opportunity to say "hold on a minute, these two things are not the same!"

I trust you understand.
i agree with you. - by BobSales
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.
Max...what exactly do you mean by large media conglomerates and I am not quite sure where you get your information? Let me give you some figures to try on for size. All my information comes from TVB Online. I am in no way trying to defend NBC, I am an Advertising Sales Executive with a local Fox affiliate and I sell local broadcast television and let me tell you that if broadcast TV is dying you sure can't tell it by these figures. I am going to give you the last five years so you will have something to judge from.

When I say media sales I am including Local Broadcast TV, Syndicated TV and Network TV;

These figures are from the Top 100 Markets in the Nation.

2004 Annual Ad Sales...$47,199,897,800.00
2005 Annual Ad Sales...$46,060,348,000.00
2006 Annual Ad Sales...$46,350,896,500.00
2007 Annual Ad Sales...$48,350,896,500.00
2008 Jan-Sept Ad Sales$34,299,400,000.00

I realize that 2008 was an election year so by the time all the numbers come in the final count will be somewhere around, $56,900,000,000.00. Take away the money spent on political ads and you will see that 2008, even though it may be flat, is certainly NOT a dying a slow death.

The only figures I could find but I believe it is enough for you to see that internet sales hasn't stabbed TV in the heart just yet. The Ad Dollars spent in online advertising Jan-Sept 2008 is $141,794,000.00. I think you are missing about three zeros before we are completely dead. Why can't we just all get along!

MP
Advertising Executive - by MPrince
... I think you are missing about three zeros before we are completely dead. Why can't we just all get along!

MP
Advertising Executive
Very good!

Thew thing I like about MP's post is his attitude. He is not claiming online doesn't work, he is just suggesting that someone doing online-only ads ought not to claim that TV or in-Print ads don't work. Because it really is not true and therefore unfair.

Yes - if you plan to stay in this forum, please, get along. - by Gold Calling
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