Does this explain why so many MTV Networks channels are having shows start at wacky times like :36 and :18?
On Mon, Aug 27, 2012 at 9:04 PM, Joe Hass <[email protected]> wrote: > By adding to the already high commercial load. > > From behind the WSJ wall. > > > http://online.wsj.com/article/SB10000872396390444082904577609893517491070.html > > MEDIA & MARKETING | August 26, 2012, 7:46 p.m. ET > > Viacom Loads More Ads on Channels > > As Viewership Falls at Some Networks, Company Increases Air Time for > Commercials to Maintain Revenue > > By SUZANNE VRANICA and JOHN JANNARONE > > Fewer people have been tuning into some of Viacom Inc.'s (VIAB -0.65%) > cable channels over the past year, so the company has turned to a > timeworn but controversial method of maintaining ad revenue: adding > more commercials. > > According to data from TV-research firm Nielsen, the media > conglomerate's Nickelodeon and Comedy Central networks boosted the > amount of ad time they aired in the first half of 2012 by 9% from a > year earlier, to a combined 1,901 hours. That followed a 7% rise in > all of 2011 and a 4% rise in 2010, Nielsen found. > > As viewership drops at some of Viacom's channels, what the company > receives for a typical commercial spot can decrease. Increasing the > amount of commercial time allows Viacom to make up some of the impact > of the sharp ratings declines. > > Viacom's U.S. ad revenue fell 7% in the June quarter from a year > earlier, after rising 1% in the March quarter. But that compared with > a 29% drop in viewership at Nickelodeon, one of the company's biggest > channels, in the first half of the year, according to a report by > Barclays Capital, based on Nielsen data. Other Viacom channels, > including Comedy Central, have also lost viewers, but by a much > smaller degree. > > Viacom acknowledges that it has increased the load of ads, describing > it as a short-term strategy. "We see this increased commercial load as > a temporary situation that we will address as ratings improve," a > company spokeswoman said. Viacom Chief Executive Philippe Dauman said > earlier this month Nickelodeon was "beginning to show momentum." > > Media buyers, however, warn that adding more commercials can alienate > both viewers and advertisers. They say that consumers have a certain > amount of tolerance for advertisements, but don't like commercial > breaks that run on too long. And if the amount of clutter reaches a > certain level, commercials won't resonate as well with viewers. > > "It is disappointing that Viacom networks continue to shore up their > ratings underperformance by adding incremental clutter to an already > crowded commercial environment," said Jason Kanefsky, executive vice > president of strategic investments at MPG, an ad-buying firm owned by > Havas (HAV.FR <http://hav.fr/> +0.79%) SA. "This strategy seems > disconnected with their > clients' needs," he said. > > Even before the latest increases, Viacom's channels were known to > generally have heavier loads of commercials than many rivals, ad > buyers say. The precise amount varies by channels. One buyer estimates > that the average number of prime-time commercial minutes per hour > ranges from 12 minutes and 30 seconds at MTV to 16 minutes and eight > seconds at Nick at Nite. Nickelodeon, which aims at children, has a > lower ad load, with nine minutes and 26 seconds, the buyer estimated. > > Viacom didn't disclose how many commercials it runs during its shows. > > In contrast, Walt Disney Co.'s (DIS +0.14%) ESPN plays nine minutes > and 27 seconds of commercials per hour and Discovery Communications > Inc.'s (DISCA +0.66%) Discovery Channel plays 10 minutes and 59 > seconds, the person said. Discovery and ESPN declined to comment. > > One media buyer said the increase in the ad clutter has caused his > firm to cut back on what it spends on some Viacom networks. "Nick at > Nite has been devalued because of underperforming ratings and it's > been compounded by them increasing the ad clutter," the ad buyer > added. > > Viacom isn't the first network to add more commercials when ratings > softened. "It's a common tool," says Brian Wieser, a media analyst at > Pivotal Research Group. "But you can't keep making up for shortfalls > in ratings by adding to your commercial load. It's a nice tool to > manage short-term problems." > > Another media buyer said that Viacom's move to increase the ad load is > a "double-edge sword," since increasing the length of ad breaks > usually results in ratings falling as viewers are more inclined to > leave a show that is overcluttered with ads. > > Thanks to the growing availability of Internet video, viewers may be > more likely to switch off their televisions if they grow impatient > with commercials. Older seasons of some Viacom programs like > Nickelodeon's popular cartoon "SpongeBob SquarePants" can be watched > commercial-free on Netflix Inc. (NFLX -1.22%) Analysts have questioned > whether that has contributed to Nickelodeon's ratings declines. > > -- > TV or Not TV .... 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