Cash cow all the way
NBC Universal has reportedly kept some Olympics ad inventory in its pocket, hoping its impressive viewership numbers would pull in spendier advertisers.
Between Monday and Wednesday (Aug. 11-13) of this week, the network sold an additional $10 million worth of TV spots — topping the $1 billion it already received from pre-Olympic ad sales across across all online and offline properties, AdAge reports.
Some of the 100-plus businesses that already bought Olympics returned for more; other spots went to new advertisers. But primary interest came from retailers, consumer-packaged goods companies and movie studios.
Even Presidential hopefuls Sen. Barack Obama and Sen. John McCain have sparred over the coveted TV time, buying $5 million and $6 million worth, respectively.
According to NBC, the Beijing Olympics has so far attracted 168 million total viewers, almost 15 million more than in the first five days for Athens. The claim is supported by its Total Audience Measurement Index (TAMI), which includes Nielsen data (daily TV ratings), Quantcast (online and video on-demand), and measurement of mobile audiences.
The network was recently criticized for hoarding its online coverage. Material from NBCOlympics.com cannot be embedded elsewhere, and even publishers with their own Olympics footage have been asked to remove it.
But cable and broadcast network account for the largest swathe of viewers (92 percent on Aug. 11), keeping TV ad space at a premium. While top advertisers get the most savory spots, NBC is also leveraging the two-week frenzy to promote its own shows, like new fall series "My Own Worst Enemy."
Average commercial length for the Games — about 2 minutes, 18 seconds — is one minute shorter than the average prime-time commercial pod. NBC was nonetheless able to squeeze in more pods per hour (6-7) than a primetime network drama (5). And while costs of a 30-second spot vary, NBCU slated the average price at about $750,000 — a 40 percent gain from its price in 1996 ($250,000).
The Olympics was a major factor in boosting 2008's year-over-year ad spend forecast to $479 billion (a 6.8 percent gain), completing a high-viewership trifecta that includes the American election and the European soccer championship.
