Ad Biggie Secures Half Billion Dollars In Upfront Deals

Even before the major broadcast networks unveil their new prime-time schedules this week, one of the nation's largest advertisers has quietly secured upfront ad commitments valued at nearly half a billion dollars. But the networks won't see a penny of it. That's because the ad deals are all pro bono and the advertiser is The Ad Council, the national clearinghouse for Madison Avenue's public service ad campaigns.

As part of an upfront procurement strategy initiated last year, the council has already secured $470 million in pro bono media commitments for 2005, an 83 percent increase over the value of media it got upfront commitments for heading into 2004. For full-year 2004, U.S. media companies donated $1.7 billion in advertising time and space for Ad Council campaigns, a 33 percent increase over the donations it received in 2003.

The council attributed the increase to two changes in the way it solicits media donations: The upfront outreach effort, and a bigger presence in local markets across the country. Over the past year, the council hired regional directors in New York, Los Angeles, Chicago, Atlanta, and Dallas.

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The No. 1 beneficiary of donated media time and space went to the U.S. Department of Homeland Security's Emergency Preparedness, which garnered more than $199 million in 2004, due largely to $164 million in support provided by the telephone directory publishing industry. Other top-ranked campaigns were Obesity Prevention, High School Dropout Prevention, Youth Voter Participation, and Parental Involvement in Schools.

2004 Donated Media Support (in millions)


2004 2003 Change
Radio $952 $578 +65%
Television $333 $364 -9%
Telephone Directories $164 $158 +4%
Interactive Media $108 $86 +26%
Outdoor/Transit $67 $42 +58%
Alternative Media/PR $51 $29 +76%
Magazine $37 $26 +42%
Newspaper $25 $22 +14%

Source: The Ad Council.

Radio remained the largest supporter of Ad Council PSAs, donating $952 million in airtime in 2004--a 65 percent increase over 2003.

Outdoor media support increased by 58%, to $67 million.

Magazine support increased by 42%, to a $37 million contribution of ad space.

Despite a 9 percent decrease from 2003, broadcast and cable TV remained the second largest supporter, donating a total of $333 million in advertising time. The decrease was attributed to inventory pressures due to increased program promotion and corporate-branded PSAs.

Alternative media outlets contributed $51 in media value during 2004, including PSAs in movie theaters, airplanes, elevators, and convenience stores; developing public relations and grassroots marketing programs; and other forms of integrated communications.

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