The 'big one' in
American TV events took place at the beginning of February, with SuperBowl TV advertising costs reaching an astounding level, but last
night another TV ad-spend bonanza took place, as the 87th edition of the Oscars
was held at the Dolby Theatre in Hollywood.
As time shift viewing continues to nibble away at the live TV market and
reduce audience sizes, these huge live events (and the social media response they
create) are becoming more and more significant for major brands in America such
as AT&T, Samsung and JC Penney; but then, so are the accompanying pricetags.
30"ads during the Oscars in 2014 sold at circa $1.8 million each,
whereas this year they were pitched at a cool $2 million (11.11% increase YoY).
To contextualise this - a spot in the final of the X-Factor last year (one of the most
expensive ad breaks on UK television) was valued at somewhere between £150,000 and £200,000,
which would only be enough to get you 4-5 seconds of an Academy Awards ad.
The sheer audience sizes are a major reason for this; the Oscars offers
a global audience of about 47 million and the SuperBowl 114 million, whereas
the X-Factor...well, at c. 8 million it's not on the same stage.
As we've recently pointed
out, there is a massive shift towards digital spend in the UK, whereas this has yet to be entirely replicated in the
US; only 28% of spend is on digital, compared to over 50% in the UK. Moreover,
advertisers still pay premium dollars for the few spots remaining they are sure
will draw big 'live' audiences, and major sporting and film events are top of the list
for US advertisers.
The balanced audience leads to the Oscar ad breaks traditionally having a more
heart-warming feel rather than the stereotypical aggressive humour of the
SuperBowl ads.
The collection of celebrities at the Oscars also offers opportunities above and beyond spot-and-space, which Samsung famously took advantage of last year through product placement of Ellen DeGeneres' selfie, which has now been re-tweeted nearly 33 million times!
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