• by Paul Gough , March 31, 2004

Seeking to set itself apart in the marketplace and to cut advertising clutter, Hallmark Channel has begun to offer branded sponsorships that give exclusive access to the channel's original and acquired movies.

The first advertiser to take advantage of the opportunity is pharmaceutical giant Schering Plough, which will sponsor Hallmark Channel's original movie "The Long Shot" when it premieres April 18. The placement for Schering's allergy medication Claritin will feature eight minutes of national spots instead of the traditional 24 minutes for a two-hour movie--spots that will exclusively belong to Claritin. No other national advertisers will appear during that block.

The idea behind Hallmark's Sponsorship Solutions Unit is to provide advertisers with a way to get its message across without any interference, and with an audience-pleasing half as many commercials as the typical Hallmark break. That low-clutter environment will be a winning combination, predicted Bill Abbott, executive vice president of advertising sales. The so-called "movie entitlement" could also include product integration, online, and the connections the channel has to Hallmark's 4,500 retail stores nationwide. Claritin will also be featured in every promotion and spot about the movie before its airing.

Commercial clutter is a growing issue for advertisers, Abbott said Wednesday morning. He said larger clients in particular are demanding creative ways to spotlight their messages. Hallmark Channel has the brand, the ratings, and the expertise to accomplish it, Abbott said.

"It's a win on all levels," Abbott said. "That's why I think you'll see more and more of this going forward." He said that other advertisers are interested in getting involved, and he predicted that other networks might also do something similar.

But not with every movie, said David Kenin, executive vice president of programming. The typical Hallmark Channel original movie runs about 88 minutes; "The Long Shot" and any future "movie entitlements" would have to run 100 minutes to make up for the commercials. That's not a problem, but it takes time in the production to add those extra minutes and keep the quality up. Kenin said that not every movie could do that.

For Schering-Plough, it's about supporting family-oriented programming, said spokeswoman Julie Lux. But it isn't the only advertiser clamoring for the chance. Kraft Foods will be the exclusive sponsor of "The Parent Trap," a theatrical movie that will air June 13 and 24 on Hallmark Channel. Kraft will also have eight minutes of national advertisers for the two-hour block. Kraft will spotlight several of its brands in 30-second spots, including Oreo, Kraft Macaroni & Cheese Dinner, and Oscar Mayer Cold Cuts. It will also include billboards, tagged promotional spots, banners, and links.

Going into the upfront, Hallmark has an ambitious plan to grow both market share and CPM. The channel, a division of publicly traded Crown Media Holdings, wants to increase upfront revenues 75 percent over the 2003-04 take. To do that, Hallmark would need to have 40 new advertisers, write 25 percent new business, and grow existing advertisers' spending by 50 percent. Hallmark sells between 60 percent and 65 percent of its inventory during the upfront, with most of the rest for scatter.