Television

Ad revenue impact on US TV networks not too bad

NEW YORK: The US-Iraq conflict has hit ad revenues of US television networks but if media reports are anything to go by, matters are not as bad.

Reports in US newspapers indicate that while television lost between $150 million to $ 200 million, it is not as bad as what could have been. The loss would have more than doubled, had the networks completely done away with their normal programme schedules and dished out war news around the clock.

Having said that, however, the effect of the Iraq war on the programme line-up is still being felt. More news translates into a fewer number of commercial slots. ABC is said to be asking producers to create alternative versions of episodes that are two and a half minutes shorter. This will free up space for news updates. The bright side is that less prime-time ad slots could increase ad rates for those entertainment shows that have a decent pull regardless of the war, claim the reports.

Leading news broadcaster CNN has taken a more pragmatic view of the situation. Noting that advertisers were not so averse in continuing a certain level of presence this time as opposed to the Gulf War which took place at the start of the previous decade, CNN is running TVCs albeit on a limited basis. Over half the advertisers are willing to show visibility, which is a sharp contrast to the 20 per cent figure at the time of the Gulf War.

Fox News Channel ad sales chief Paul Rittenberg has been quoted in the report saying that the network lost about $four million in ad sales since the conflict began as the network chose to go largely ad-free.

While some advertisers want to stay completely out of the picture for the time being, others are willing to be seen in programmes that have nothing to do with the ongoing conflict. The CEO of a media-buying arm at one of the world's biggest agencies has foreseen a major problem happening if the war continues till the middle of next month.

The problem with a long-term war is that advertisers will get caught in a jam, thanks to the rather cheerless mood prevailing in the country. On the one hand, one cannot have ads with a humourous message or catchy music. On the other hand, if one goes down the patriotic route then there is the risk of the viewer perceiving this as being opportunistic.

The ad community however would do well to take note of a USA Today report which states that viewers are very set in their patterns. They can be affected for a few days, but by and large they stick with what they normally do. They know that if something dramatic happens, they will be told about it.

Whatever the duration of the war, one thing is certain. The Iraq conflict will hit Viacom, Fox and Disney's profit targets for the first quarter of the year. Not only do they have to cope with reduced ad spends, there are also significant costs involved in covering the conflict.

In television advertising, it is the "upfront" market that sets the tone for the $54 billion industry's upcoming year. This year's selling period may have the misfortune of colliding with a prolonged conflict in Iraq. The upfront sales season starts 12 May, selling network and cable ad time from October 2003 through September 2004. The report states that last year's upfront sales season sold $8 billion worth of network spots and another $6.6 billion in commercials for cable and syndicated television. That was up 15.9 per cent from the 2001 season.

The silver lining here is that if a lot of ad time inventory during the upfront season is unsold then the networks could be able to sell it at higher prices later on. This will again hinge on the extent to which the economic and geopolitical circumstances improve, the reports point out.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/25/sony.jpg?itok=I2kxp4Dq
Sony Pictures Networks India (SPN) to telecast the India Tour of Ireland 2018 live and exclusive on SONY SIX and SONY TEN 3 channels

Sony Pictures Networks India (SPN) has announced that it has acquired the exclusive media rights to telecast the 2018 India Tour of Ireland that comprises two T20Is to be played on June 27 and June 29, 2018, in Malahide, Ireland.

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/25/tlc.jpg?itok=JVqCpOWZ
TLC to show Masterchef Canada season 5

TLC, a part of Discovery, has announced the telecast of the fifth season of the culinary competition series Masterchef Canada from 26 June in India.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/25/naam.jpg?itok=3O03ZYZ2
&pictures to screen the Indian spy thriller ‘Naam Shabana’ on Saturday, 29th June at 9.30pm

A spinoff of the 2015 box office hit Baby, Naam Shabana follows the life and journey of a spy. Directed by Shivam Nair, the thriller features Taapsee Pannu as Shabana Khan along with Akshay Kumar, Prithviraj Sukumaran, Anupam Kher and Manoj Bajpayee essaying pivotal characters. &pictures, Naye...

Television TV Channels Movie Channels
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/25/kids.jpg?itok=M51Ves5n
Big Trunk Communications bags digital mandate of Discovery Kids channel in India

Big Trunk Communications, a Mumbai-based full-fledged creative digital agency, has acquired digital duties for Discovery Kids channel in India.The business was won as part of a pitch against leading digital agencies.

Television TV Channels Kids
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/23/zee-tamil-sare-gama.jpg?itok=Vd5vu3RX
Zee Tamil strengthens its weekend programming

MUMBAI: Zee Tamil, the tamil general entertainment channel of ZEEL, recently announced its decision to spruce up its fiction bands for weekends.

Television TV Channels Regional
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/Nivedita-Oak.jpg?itok=75PAewjb
Times Television Network elevates Nivedita Oak to DGM

Times Television Network (TTN) has elevated Nivedita Oak to deputy general manager - influence. Earlier, Oak was the regional head for Zoom, FCT and branded content. She has been working with the Times Network for the last 11 years.

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/pathan.jpg?itok=tah626ME
History TV18 to release third film in ‘Special Operations India' series

History TV18, a pan-Indian television channel, is to create a documentary on counter-terrorist operation at Pathankot air base named Special Operations India: Pathankot. This one-hour documentary will be aired on June 25 at 9 pm.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/cnbc.jpg?itok=opviMAi9
CNBC-TV18 successfully concludes the 8th edition of the ‘India Healthcare and Wellness Awards 2018’

NBC-TV18, India’s leading English business news channel along with ICICI Lombard hosted the 8th edition of the ‘Indian Healthcare and Wellness Awards 2018’ at The Grand Hyatt, Mumbai.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/mn.jpg?itok=QPriVkLO
MN+ to air Indian Television premier of ‘Tulip Fever’

MN+, the Gold Class of Hollywood Movies from the Times Network, brings to the viewers, for the first time on Indian television, the celebrated romantic historical saga– ‘Tulip Fever’. The movie will premiere on Sunday, 24th June at 1 pm and 9pm on MN+.

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories