NBC Is Reimbursing Advertisers For Ratings Shortfalls

Adweek reports that NBC is reimbursing advertisers for fourth-quarter prime-time ratings shortfalls, averaging about $500,000 per advertiser. They say this is the first time in years a network has taken such a step to compensate marketers for ratings deficiencies.

Typically, networks would offer make-goods for shortfalls, but unfortunately broadcast networks have little ad inventory left between now and year-end for advertisers chasing holiday shoppers.

The networks problems emerged even before the Writers Guild strike. They blame ratings softness on the conversion of the upfront sales metric this season from live program ratings to commercial ratings plus three-day DVR viewing. But Adweek reports that media agencies contend broadcast prime-time ratings are down significantly even when DVR viewing is added in.

Adweek:

They also contend that the nets created the problem by carrying over make goods from last season, and by overselling scatter inventory at hefty prices rather than holding back more for make goods. "They got greedy, and now they are paying the price," said one buyer.