Add cosmetics giant L’Oreal to the list of advertisers bowing out of running ads during this year’s Oscars.
After tying with Coke as the biggest advertiser during last year’s Academy Awards show, with eight spots, the company is taking a powder, joining a growing list of advertisers settling for lesser roles or ceding the spotlight altogether.
What’s more, American Express, a sponsor for 15 straight years, is slated to run only a single spot.
Faced with a weak economy and fearful of a backlash against big spenders, several longtime sponsors have scaled back on spots, are recycling ads that have already aired elsewhere or are bowing out of the show entirely.
L’Oreal joins General Motors, which ran five spots last year, to forgo Sunday’s broadcast. The beleaguered automaker made the announcement before news that it would receive billions in a federal rescue. It also sat out the Super Bowl.
Traditionally, a handful of blue-chip brands have dominated the Academy Awards, the second-biggest TV event after the Super Bowl.
During the past decade, eight advertisers accounted for more than 60 percent of total spending, according to ad tracker TNS.
Last year, L’Oreal’s and Coke’s eight spots were followed by GM and JC Penney with five spots each. Amex, one of the biggest advertisers in the past decade, aired two 60-second spots last year.
This year, Coke is back with five spots, including one for Diet Coke that stars model Heidi Klum. Another longtime sponsor, JC Penney, which is kicking off a spring campaign, will air five ads.
An Amex spokeswoman said the credit-card company, which took government aid along with the other big banks, is pulling back on advertising in general.
Rival MasterCard has four spots in the show, but none of the ads is new.
The slack demand has led ABC to reportedly cut the price of a single 30-second spot to $1.4 million, down from as much as $1.8 million last year. Although the network declined to comment on pricing, people close to the situation said prices have ranged between $1.4 million and $1.7 million.
Fortunately for ABC, First timer Hyundai bought seven spots and will debut two new ads, including one featuring cellist Yo-Yo Ma. At that tally, the South Korean carmaker could turn out to be the year’s biggest Oscar advertiser.
Meanwhile, the show’s organizers lifted a 50-year ban on commercials for upcoming movies to expand the pool of advertisers. So far, two movies – Disney’s Pixar with “Up” and Paramount’s “The Soloist” – have confirmed they’re in the show.