After a month of stalled negotiations, NBC became the first broadcast network to sell commercial time to advertisers for the upcoming fall season.
NBC struck two major ad deals yesterday in the so-called “upfront” market, the annual deal-making frenzy when the bulk of primetime commercials are sold.
Although the pace of deals varies from year to year, this upfront has been unusually drawn out because of a dizzying array of alternatives and disagreements over audience measurement.
Analysts and ad buyers said it made sense for NBC to be the first of the major broadcast networks, including CBS, NBC and Fox, to make a move.
NBC’s ratings slump, coupled with the recent shakeup in its programming ranks and a slim lineup of new fall shows, gives it less room to negotiate.
“They have the least to lose by going first,” said Jack Myers, a veteran media analyst. “They have the toughest negotiation position in terms of how their program development is perceived.”
The Peacock sealed its first deal with key upfront player GroupM, the global media-buying arm of ad giant WPP. The deal, worth an estimated $800 million, spans NBC Universal’s cable networks and Spanish-language channels in addition to the flagship broadcast network.
It also marks the first major ad deal negotiated using Nielsen’s new commercial ratings, which count the number of viewers who stay tuned during the breaks, instead of traditional program ratings.
NBC’s move signals the industry is slowly getting its arms around commercial ratings despite months of debate. The cable networks have complained of glitches with Nielsen’s system and are expected to hold off using the new ratings.
It’s unclear if NBC had to cut rates, measured as the cost of reaching 1,000 viewers, or CPMs. The network declined to comment on ad rates. Last year, NBC, a division of General Electric, garnered about $1.9 billion in the upfront market after reducing ad rates.
Yesterday, NBC and Nissan also renewed a wide-ranging promotional pact negotiated during last year’s upfront that is centered on “Heroes.” Nissan will sponsor the “Heroes” season premiere with limited commercial breaks to tout its new Rogue crossover vehicle.
In addition to 30-second spots, Nissan will sponsor other marketing tie-ins, including a “Heroes” music video and the release of the show’s first season on DVD.
Aside from breakout hit “Heroes,” NBC is still struggling to regain its standing in the ratings after falling to fourth place among the broadcast networks.
After unveiling its fall schedule to advertisers last month, it surprised Madison Avenue by bringing in producer Ben Silverman to replace programming chief Kevin Reilly.