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Academy Awards Ad Cost, Volume Reaches Record Highs

Written on
Feb 22, 2016 
Author
Adotas  |

Local advertising, social media campaigns provide additional opportunities for leveraging interest in the awards telecast and integrated campaigns.

Millions of TV viewers will tune in to the 88th Academy Awards ceremony on February 28th, whether to satisfy their desire for Hollywood glamour or perhaps to see if host Chris Rock weighs in on racial equality and diversity in the movie business. An elite group of marketers will also be vying for a spot on the red carpet, paying hefty prices to be associated with this marquee event and the opportunity to reach a media-savvy audience dominated by women.

Kantar Media has mined its extensive database to compile key figures on Academy Awards advertising.

Significant trends include higher ad prices and revenue; rising ad volume that is diminishing the event’s advantage versus other programming; TV sponsor overlap with the Golden Globes and Grammys; and an influx of first-time advertisers. Advertisers are also using regional TV buys to circumvent exclusive-sponsor arrangements in the network telecast. Finally, many brands are creating second-screen experiences to compete for share of social media voice during the live broadcast.

The Price of Advertising Moves Higher

In 2015 the average price of a 30-second unit in the Academy Awards surpassed $1.8 million and total revenue reached $110 million, both all-time highs. The robust pricing reflects advertiser demand for live TV events that can generate strong engagement in social media, coupled with the desirable profile of the viewing audience

The average cost of a 30-second spot in this year’s ceremony is expected to be $1.9 to $2.0 million.


  
  

The Award Shows Showdown

The Academy Awards, Grammy Awards and Golden Globes are the top three awards shows on broadcast television and occur within weeks of each other. The Academy Awards commands a significantly higher advertising price and generates more revenue than the competing programs.

  
  

Advertising Time Is Increasing

As host of the awards ceremony, the AMPAS controls and limits the amount of commercial time in the broadcast. And yet the total amount of network ad time from paying sponsors has increased by nearly 25 percent during the past 5 years, reaching an all-time high of 29 minutes, 45 seconds in 2015.

  
  
In addition, there are 5-6 minutes of promotional spots from ABC and 7-8 minutes of ads sold by local ABC stations throughout the show for a total commercial load of 42-44 minutes, or about 12 minutes per hour for a 3 ½ hour live telecast.

Yet while ad volume is growing during the Oscars, it still compares very favorably with other programming. As a reference point, the comparable amount of ad time (national plus local) in the 2016 Super Bowl was 53:20 for a 3 hour, 43 minute game which was a bit less than 15 minutes per hour. The typical range for prime time entertainment programming on broadcast and cable networks is 17-20 minutes per hour.

Spending By Top Advertisers

During the past five years the top five parent company sponsors in the Academy Awards have spent $206 million in the telecast, accounting for 46 percent of total ad revenue.

Note: the sum does not match the total due to rounding
  
  
Two of these companies will not be involved with the 2016 event. JC Penney’s deal as exclusive retail sponsor ended in 2015 and it has been replaced by Kohl’s for 2016. Hyundai was the exclusive auto sponsor from 2009-2013 and was supplanted by General Motors in 2014.

Two other well-known marketers stand out for their loyalty and longevity. McDonald’s has appeared in the program every year since 1992 and American Express has appeared every year since 1993.

First Time Sponsors

The combination of limited commercial time and marketers with guaranteed category exclusivity results in a relatively small number of companies appearing in the Academy Awards. However, there is turnover and recent years have seen an influx of new sponsors eager to capitalize on the event. In 2015, first-time advertisers accounted for 30 percent of the Academy Awards lineup.


  
  
The restaurant category was also very active regionally. McDonald’s supplemented its one national spot in the ceremony with local buys in 23 markets. Arby’s, Chick-Fil-A, Dunkin Donuts and Jack In The Box each aired commercials in 15-20 markets,

Social Media Integrations

The Academy Awards broadcast stimulates plenty of discussion on social media, mostly about the award winners/losers and celebrities as compared to the brands advertised.. But each year a few advertisers with paid spots in the TV broadcast try a second-screen approach utilizing owned content distributed from the brand’s social media account. Examples from 2015 included Dove, Coldwell Banker and Cadillac.

As part of its #SpeakBeautiful campaign to promote self-esteem about beauty and body image, Dove aired a :30 second spot during the Red Carpet coverage that included the sobering headline, “last year women sent over 5 million negative Tweets about beauty and body image.” The ad encouraged women to start a trend by Tweeting positive statements and to “speak beautiful.” As a complement to the TV message, Dove made use of a Twitter tool to flag tweets with negative references about appearance or beauty and automatically tweeted back a positive reply from Dove’s Twitter account. According to statistics compiled by Unmetric, a Kantar Media partner, Dove tweeted almost one thousand replies and generated more than 26,000 interactions during the awards show.

Real-estate broker Coldwell Banker used the 2015 Academy Awards to launch its “Home’s Best Friend” campaign. A TV ad featured dogs that found homes with the help of Adopt-A-Pet.com and showed the joy they give to their owners. In the several hours preceding the show the brand was active on Facebook and Twitter promoting its involvement with Adopt-A-Pet.com, encouraging people to watch its TV commercial and replying to followers. Nearly 2,000 interactions were generated by the owned content on the day of the awards event.

Cadillac also used the Academy Awards as a launch platform for its “Dare Greatly” campaign, intended to reposition the luxury brand with younger buyers. A series of TV commercials highlighted five individuals whose remarkable achievements that helped drive the world forward. A concurrent effort in social media directed consumers to an extended version of the ad where they could learn more about each individual’s story – as well as Cadillac’s own story of driving achievement. The social campaign went live as Cadillac’s first TV spot aired and generated more than 10,000 Facebook and Twitter interactions during the awards telecast.

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