• by Paul Gough , May 10, 2004

The Hallmark Channel's first experience with its new Sponsored Solutions Unit is nothing to sneeze at.

Last month, Hallmark debuted a new type of advertising sales opportunity wrapped around its original movie franchise. "The Long Shot" aired April 18. Each hour included four minutes of advertising, about half as much as usual.

Claritin, the over-the-counter allergy medication manufactured by Schering-Plough HealthCare Products Inc., was the sole sponsor of the broadcast.

"The Long Shot" did well in the ratings, with a 1.8 household rating and a steadily increasing audience as the telecast went on. It peaked at a 2.2 household rating near the end of the movie. It also had the longest length of tune in adults 25-54 and two-person households of any original movie on cable so far this season.

"The Long Shot" has become anything but in the eyes of advertisers. Hallmark Channel's Sponsorship Solutions Unit will unveil its second reduced-clutter/single-advertiser original movie in June with a remake of "The Parent Trap." It's sponsored by Kraft.

"We've got over 30 inquiries for major sponsors looking to take up this kind of advertising," said David Evans, president and chief executive of Crown Media Holdings, parent company of Hallmark Channel.

Hallmark's innovation benefits advertisers and itself. Advertisers are able to play in an environment that's wrapped around the brand, with more opportunities beyond the typical 30-second commercial. And Hallmark Channel is able to charge a higher CPM for the time, although there's a reduced commercial load.

Advertising has grown for Hallmark Channel, increasing 34 percent in the first quarter compared to the same period in 2003. Advertising revenues for Hallmark's domestic TV channel rose from $22.4 million to $30 million in the first quarter. It expects to bring in another $30 million in advertising revenues in the second quarter, which will conclude June 30. That compares to $23.7 million in the second quarter of 2003.

The scatter market is strong in the second quarter. It plans to sell between 60 percent and 65 percent of its inventory in the upfront marketplace, gaining 10 to 20 new advertisers and CPM increases--between 3 percent and 5 percent above the general cable marketplace.

"Our sales team is very bullish going into the upfront," said Bill Aliber, Crown Media Holdings' chief financial officer.

Hallmark Channel has been adding to its distribution with the addition of 650,000 subscribers through Comcast and Insight systems in Chicago, Michigan, Florida, and elsewhere. Hallmark Channel's total distribution is now more than 59 million.