Super Bowl ads priced to reflect the Expects of Bell Media
As it sells advertising airtime for next year’s Super Bowl, Bell Media is putting costs on the premise that it will once more have the ability to swap from the CTV television feed — and Canadian ads — over the U.S. large game broadcast in Canada.
BCE Inc., which owns Bell Media, has been fighting an order that prevented that indicate swapping — called simultaneous substitution or “simsub” — starting with the game last February. That change was caused by a 2015 In broadcasting the Super Bowl beginning in 2017 in the Canadian Radio-television and Telecommunications Commission, saying that simsub would be permitted. The reason for the decision, according to the CRTC, was that the Super Bowl is an odd case where viewers want to see. However, the NFL, Bell and representatives of Canada’s advertising industry have argued against the judgment.
The advertising sales strategy is the one last year that Bell pursued. It asked for a stay of the change, and also had taken its fight to the Federal Court of Appeal — selling ads that the stay would come through. That did not happen 2016. The matter is before the courts. Bell filed an application requesting the CRTC earlier this month.
Ads are sold by broadcasters based on estimates of audience size based on performance . Bell revised its prices downward according to its prediction for the match compared with the preceding year, after the stay didn’t come through this past year. Should its attempts this season, to overturn the conclusion that is simsub fail, it is going to have to do.
“The pricing has been revised, which clearly contributes to delivering less earnings. And we also sold less stock for this,” said Perry MacDonald, senior vice-president of English television and local revenue for Bell Media.
Though Bell doesn’t specify the amount of available ad slots which it marketed, or by how much that amount dropped, the business has stated that the combination of lower costs and fewer sales resulted in an $11-million decrease in Super Bowl advertising revenue for this year’s match, a 60-per-cent fall compared with the 2016 broadcast.
The match in February drew an average audience of 4.47 million on CTV, CTV Two and TSN — a 39-per-cent fall from the 7.32 million people who tuned in on CTV alone the preceding year.
It’s tough to know precisely how much of the decrease can be attributed to Canadian audiences migrating to the U.S. Super Bowl feed, which was on Fox this season; ratings dimension firm Numeris says it doesn’t track all the Fox channels on the Canadian dial and, after the match in February, it wouldn’t share any data out of those it did monitor. The audience fall and the French-language marketplace of Canada differed — ratings for the match on RDS were stable compared with last year — and in the United States.
As with a lot of its programs, Bell starts selling ad bundles for the upcoming NFL regular season, playoffs and the Super Bowl following its “upfront” presentations each June and during January, subject to availability. The majority of the ads are sold with some inventory. Like other programs, the part of advertisements available compared with markets that are smaller depends on advertiser demand.
There isn’t any single cost for a Super Bowl ad, based on ad buyers, because entrepreneurs who commit to larger deals — purchasing a bundle of advertisement time throughout the season, by way of instance, or registering to a greater sponsorship of the broadcast — would negotiate prices representing their purchase commitment. Additionally, it depends upon where the ad airs. But generally speaking, lately Bell has controlled $ 150,000 to $ 190,000 for 30 minutes with costs rising to the match, during the Super Bowl broadcast, according to sources. With cost adjustments this season required, Bell lost tens of thousands of dollars for each and every network ad.
Besides price adjustments, in certain cases Bell also offered “make-goods” in the kind of advertisement space in future applications to compensate for the audience.
“Advertisers are being very supportive of our position,” Mr. MacDonald said of the revenue negotiations this year, including that Bell is ready to make adjustments again if needed.
“These are long-valued relationships which we have with advertisers and their agencies. We’re going to make certain that they get what they paid for.”