TNS: Oscar Ad Price Doubled In 10 Years

A new report shows advertisers have spent an average of $65 million for each of the last 10 Academy Awards broadcasts. And, no surprise--the figure has practically doubled since 1998.

TNS Media Intelligence reports that marketers in total ponied up $80 million for last year's broadcast, compared to $41 million in 1998, the year Gwyneth Paltrow was named "Best Actress" for "Shakespeare in Love."

Still, last year's $80 million take was down a slight $700,000 from the year before. But only once since 1998 has the total spend shown a year-over-year drop--when the $72 million in 2005 fell below the $78 million in 2004.

A possible reason: 2004 featured "Million Dollar Baby" and Clint Eastwood on high display, while 2005 had niche productions taking center stage, such as "Good Night, and Good Luck" and "Capote."

TNS data also shows that unit costs have risen all but twice since 1998. In 2002, the average 30-second spot cost $1.3 million, down from the $1.5 million in 2001. And pricing was flat at $1.5 million in both 2004 and 2005.

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TNS says a spot last year was $1.7 million; in 1998, a spot cost $950,000.

Unit prices have risen despite a continual decline in household ratings from a 30.9 in 1998 to a 23 in 2007. Ratings dropped precipitously from a 26.2 in 2001 to a 20.4 two years later, and were essentially flat last year. Jon Swallen, senior vice president of research for TNS, said that the failure of Oscar advertising to generate pre-show buzz compared to the Super Bowl can hurt the show's ratings.

"While the Oscars has lost 25% in ratings since 1998, the Super Bowl has lost 6%," he said, adding that "it's not just about the program--it's about the buzz over the advertising content itself. You don't have the second reason for the Academy Awards."

The Oscars do offer less clutter than the Super Bowl, according to TNS. Last year, the awards show averaged about 8 minutes of ad/promo time per hour, down from the approximate 10-minute average of the previous three years.

Sponsors that have been in multiple shows over the past decade include GM, American Express (which often produces movie-specific creative) and McDonald's. Pepsi was an advertiser until Coke took over the beverage category in 2006. (Coke begins each year now with a fusillade of spots in big-time telecasts from the Super Bowl to "American Idol" to the Daytona 500, then the Oscars and March Madness.)

GM has spent $97 million on Oscar broadcasts since 1998, with Pepsi coming in second at $61 million even though it had a presence for only eight of the 10, according to TNS.

TNS reports that Coke's outlay in just 2006 and 2007 was a robust $25 million.

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