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Monday, March 28, 2011

Nets, Advertisers Call Plays Amid NFL Strife

Since the National Football League locked out its players about two weeks ago, some cable and broadcast networks have been preparing contingency plans to air alternative programming in case games are canceled this fall.

According to a story by Lauren A. E. Schuker at wsj.com, advertisers, who spend roughly $3 billion a year on commercials that run during NFL games, also are forging new plans and considering buying commercial time on other marquee programming should the work stoppage continue into the football season. Some advertisers already have bought commercials on Viacom Inc. television networks as a backup.

"Football is so important to networks and buyers that they can't afford not to plan ahead," says Sam Armando, who heads television research at SMGx, an ad-buying consultancy arm of Publicis Groupe SA. "Both networks and advertisers are definitely working on a Plan B.

"It's not like you can replace football overnight with other sports or prime-time shows," he continues. "There are contracts and schedules and a lot that has be worked out."

Adds Michael Nathanson, a media analyst for Nomura Securities: "The lockout may be resolved over the summer, but these networks and agencies have to plan now for their fourth quarter. And if football is off the air, guess what? You've got a problem."

The standoff between the NFL owners and the league's players over compensation has become particularly threatening to the league's television partners as record numbers of viewers tune in to watch the NFL.

For the second year in a row, the Super Bowl in February smashed records to become the most-watched telecast in U.S. history. About 111 million people watched the game on Fox Broadcasting, according to Nielsen Co. News Corp.

Now, the potential cancellation of games would deprive networks of a crucial way to attract large numbers of viewers and advertisers.

While advertisers haven't yet changed their usual May schedule for buying NFL ads, executives say the uncertainty has heated up the advertising market for other programming that draws large audiences. Golf, college football and prime-time dramas are among the areas attracting extra interest.

Read more here. 

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