Here’s the dirty little secret behind broadcasters’ campaign to change the way ads are sold — to include people who watch them up to seven days after they air (called C7), up from three (C3): It wouldn’t increase advertiser spending on TV. It would just change the proportion of sales that go to broadcast vs cable. That’s the main reason why Bernstein Research’s Todd Juenger says this morning that a new arrangement “would be largely a wash” for Big Media companies that have broadcast and cable networks. The exception is CBS, which collects relatively little from cable ads. “Broadcast programming, especially primetime, is timeshifted more than cable network programming,” he says. TiVo data show that broadcast network commercial ratings would rise 6% in DVR homes while cable would be +4% if the sales period is expanded to seven days. (That includes ad zapping: Overall program ratings would rise 11% for broadcast and 8% for cable.) Since about half of all households have a DVR, that might translate into an overall increase in counted ad viewing of 3% for broadcasters and 2% for cable. If you assume that advertisers wouldn’t increase their TV budgets, then a change that largely affects DVR homes would move about 0.5% of the $40B in national TV ad spending to broadcast from cable — about $115M. That’s “worth fighting for,” Juenger says. But not so much for companies that sell lots of ads on cable networks. No wonder “we will once again see CBS leading the charge in this fight on behalf of the broadcast networks.”


BS. Remove sports and ABC is lead in L7. CBS is having a pretty bad fall with no real new hits, yes even Elementary.
Why remove sports? Don’t they show ads on sports shows?
Deadline did a story where an ad honcho responded exactly as I thought the industry would respond – sure, we’ll count C7 at an appropriate discount to take into consideration the fact that many ads are designed to be seen sooner than that, and may expire by the time they’re counted,
Ad budgets are all going towards online/mobile media. No worries about ad timing. You need X people to see Y ad at exactly Z time? You’ll get precisely what you pay for, and with much firmer proof than the wonky Nielsens. And when TV all moves to streaming, this situation will be resolved, although content makers will face a different problem, that advertisers will finally have proof that they haven’t been getting their money’s worth, and since people can evade ads even more efficiently online, the downward pressure on ad rates will intensify.
i predict that the only ad-supported “TV” will be cheap reality shows etc, while anything quality will require direct payment by viewers.
cable isn’t time-shifted as the same episode is played more than once durring the week.
I just relaized I missed last nights TNT shows,darn!
I guess Todd missed Ted Harbert’s speech at NBC’s upfront last May–before anyone else was publicly calling for this. Last time I checked, he’s got some cable assets to run.
And yes, many ads are time sensitive. But plenty are not–there are tons of image spots on the air for soft drinks, autos, beer, fast food restaurants, etc. None of those are time sensitive and could certainly be measured using C7.
DVR ratings aren’t what matters, it’s STREAMING that counts. The only people who watch TV live or on DVR are my parents, and everyone else I know watches their shows every single week through hulu or other sites.