Remaining Oscar Prices Could Rise

Oscar

With the recent ratings boom for live and high-profile events, any remaining spots for the Academy Awards could bring premium pricing. That would be an apparent reversal from a year ago for ABC.

A new Kantar Media report says spots in the show averaged $1.3 million in 2009, the lowest rate since 2002. Also, the network brought in $68 million, the leanest haul since 2003.

Spots plunged in pricing 23% from 2008, while total revenue fell 16%, Kantar says.

However, Kantar noted that last year had the threat of an actors' strike and a resulting cancellation of the show, which could have slowed sales. But it signaled the main cause was a weakening economy.

This year, the Grammys, Super Bowl and Olympics have posted impressive ratings gains, and the scatter market has been strong -- all signs that Oscar ad pricing may be restored to 2008 levels, if not surpass them.

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Also, '09 was the first year the academy allowed ads for films, and there was some speculation ABC could benefit from a rush of studios eager to take advantage of the captive audience. But only two bought in: Disney and Paramount.

Restrictions on the movie advertising played a role -- including that the films can't open before the end of April, which is too long a lead time for many marketers, notes Kantar.

General Motors had been the leading Oscar advertiser before dropping out last year. Hyundai's now flush budget makes it a near-certain presence in all major events; the automaker led last year with four and a half minutes of ad time, costing $11.8 million, Kantar said. Coca-Cola -- which uses the female-heavy Oscar audience as a target for Diet Coke -- bought four minutes, costing $10.5 million.

One-third of the 2009 advertisers were first-timers, including Hyundai, Sprint and Whirlpool.

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