NBC Giving Back
..not to the community, but to advertisers
Faced with not meeting their own guarantees to advertisers, NBC has begun reimbursing them, after their ratings plunged, Reuter's reports. They're giving back an average of $500,000 to each advertiser, the first time in years a network has done anything like this, according to media buyers.
It's common practice for networks to offer free advertising slots in cases like this, but the network doesn't have any to offer up. This time of year, most networks have sold all of their time slots, except for time after Christmas and before New Years Eve, but for advertisers looking for the almighty Christmas dollar, that does little to help.
The other, top three rated networks (CBS, ABC and Fox) are also giving out "make-goods" to advertisers, none are giving money back. Instead, they are giving out the aforementioned free advertising, but mostly during the first quarter, and nothing really immediate, like the refunds NBC is passing out. Maybe that has something to do with the fact that "The Peacock" is suffering the most drastic ad shortfall, with its primetime ratings being the lowest of the Big Four networks. Advertisers have grown leery of too many reality shows, and NBC's plans to add more of those shows to it's schedule is only adding to the buyers' angst. Add that to the fact they are also planning a remake of "Knight Rider" and it really makes advertisers hesitant. "We're trying to understand NBC's recent moves" Laura Caraccioli-Davis, exec vp of Starcom Entertainment. "We are concerned that it might be thinking about adopting a programming strategy like some of its sister cable networks. 'American Gladiators' and even some of the shows they have in development, like 'Knight Rider' are remakes being dusted off rather than coming up with new creations" she was quoted as saying.
It's really hard to believe that the network that gave us some of the greatest shows in history (The Cosby Show, Cheers, Friends, Seinfeld.....hell, Chico and the Man!!) is suffering the way that it is, and the ongoing writers strike will only hurt it more.
