Indiantelevision.com Team

(21 February 2009 3:00 pm)

NEW DELHI : The ABC network has lost several long time sponsors, including General Motors Corp, L'Oreal Paris and Dove soap.

Additionally, the broadcaster has witnessed a decrease in participation from advertisers like American Express, traditionally one of the biggest advertisers in the Oscars, who purchased only one spot this year.

Moreover, ABC's plan to fill in the revenue gap by relaxing its 50-year ban in October, 2008 on movie studio's advertising during the show, has failed to yield results.

According to the company, studios could promote only those films which are set for release two months later to avoid the perception that advertising influenced the outcome of the awards.

Thus, in its bid to gain advertisers ABC has reduced its ad rates this year. Last year ABC sold commercial time in the Academy Awards show for $1.8 million for a 30-second ad while this year the broadcaster is selling individual spots between $1.4 million to $1.7 million.

The companies which are advertising this year include Hyundai Motors, JC Penney, PepsiCo's Frito-Lay, MasterCard, McDonald's Corp and Coca-Cola.

According to TNS Media Intelligence report, the telecast should generate about $68 million in terms of revenue for ABC, which would be a 16 per cent decline from last year, when the show yielded $81 million in revenue.