In Depth
Drawing Little in Ad Revenue, How Does 'Mad Men' Stay on the Air?
By Brian Steinberg
Advertising Age
On cable's "Mad Men," characters such as Don Draper and Roger Sterling eat and breathe advertising (as well as red meat and liquor). Without ads, after all, they'd be out of business.
Yet "Mad Men" isn't a particularly huge draw for advertising itself, despite plenty of interesting tie-ins with marketers such as BMW and Jack Daniel's whiskey over its three-plus seasons. Airings of "Mad Men" took in only $1.98 million in ad revenue in 2009, according to Kantar Media. In 2008, the show nabbed just less than $2.8 million, and in 2007, approximately $2.25 million. These are paltry amounts when one considers that a 30-second ad in an equally buzzy program such as "24" on Fox cost between $200,000 and $280,000 as the show, off its peak, headed into its final season.
Despite the meager ad sums -- and a small audience for its first-run episodes -- "Mad Men" is an important program. Mr. Draper, Mr. Sterling and their cohorts aren't just trying to keep marketing clients happy. They are also carrying aloft an economic model for TV production that grows in importance as more cable outlets test their hand at edgy dramatic fare.
Programs such as "Men of a Certain Age" and "The Glades" are supposed to help cable compete with broadcast counterparts. In turn, those programs help cable push for the greater subscription and programming fees that keep its business stable. Under this emerging formula, TV networks and show producers must make do with smaller audiences and then work more furiously to secure every dollar that comes from merchandising, digital viewing, DVD purchases and international sales.
Advertisers will "only pay so much" to be in high-quality programs such as "Mad Men," said Kris Magel, exec VP-director of national broadcast at Interpublic Group of Cos.' Initiative, because its traditional TV reach is limited. "Once that cost hits a ceiling, the network has to make a decision: Can they afford to continue to make the show for the amount of revenue it generates?" he asked. "Sometimes they do, because the halo generated for the network as a whole and its other programs outweighs the expense. And sometimes they can't."
TV critics have lavished praise on "Mad Men," which revolves around the aforementioned Mr. Draper. Set in the 1960s, "Mad Men" depicts ad-agency executives grappling with account management and personal drama even as modern -- and more permissive -- American culture starts to rear its head. The Plain Dealer of Cleveland is pleased the show features "characters at an intersection where Madison Avenue crosses awakening sensibilities." And The Baltimore Sun praised the use of complex figures like Mr. Draper who "come to stand for such an important part of our collective history and national psyche."
Low ratings
Despite the critical acclaim, the program, which is found in bursts of 12 or 13 episodes each summer on AMC, draws a minuscule audience. The 2.9 million viewers who tuned into its fourth-season premiere on Sunday, July 25, are no match for the legions who tune in to CBS's "NCIS" (17.3 million on average, as of July 25) or even ABC's "Modern Family" (8.7 million). Cable's most-watched dramas -- stuff such as "The Closer" or "Rizzoli & Isles" on TNT -- have in recent weeks drawn a live-plus-same-day audience of around 7 million, according to Nielsen.
The average viewership for "Mad Men" -- 925,000 for first-run episodes in 2007, 1.51 million in 2008 and 1.81 million in 2009, according to Nielsen -- would get it canceled if it aired on any broadcast network in prime time. Of course, a significant chunk of the show's audience may watch days or weeks later with a digital video recorder, through iTunes or by buying the series on DVD.
That broader "after-TV" audience keeps "Mad Men" coming back to the TV screen each summer. Just as the executives at Sterling Cooper Draper Pryce try to help their clients sell Lucky Strikes and Glo-Coat to the masses, so too do they attempt to bolster both AMC, which airs the program, and Lionsgate, the show's production studio.
Each episode of "Mad Men" costs approximately $3 million to produce, estimated Sandra Stern, Lionsgate's chief operating officer, owing to the show's large cast and the producers' attention to the smallest historical details. To cover part of its costs, Lionsgate depends on a license fee paid to it by AMC. The licensing cost of a high-end drama could come in between $2 million and $3 million per episode. Meanwhile, Ms. Stern estimates Lionsgate is able to secure "slightly north of" $500,000 per "Mad Men" episode by selling it to international distributors. Digital revenue, DVD sales and merchandising add more dollars to the coffers, though some of those monies are shared with AMC.
While the revenue that comes in isn't on par with what a broadcast-network crime procedural might generate, she said, "We declare success and victory with a much smaller audience."
AMC also has reason to keep "Mad Men" on the air. The cable outlet, once known for showing older films with limited commercials or even without commercials at all, has over the past decade worked to modernize itself. In the earlier part of the last decade, it started showing contemporary movies that some may not have immediately labeled "classic" -- think 1987's "Desperately Seeking Susan" instead of "Casablanca." More ad breaks began to surface. While the channel has run scripted drama in the past, the introduction of "Mad Men" marked a significant step forward. Other shows, including the critically acclaimed "Breaking Bad," followed. Now there's a zombie series, "The Walking Dead," and a Western drama, "Hell on Wheels," in the works.
While ad dollars placed against "Mad Men" may be small, AMC's use of the program can help it win more revenue from other sources. Since "Mad Men" arrived, the amount AMC gets paid by cable and satellite operators per subscriber has increased to 24 cents from 22 cents, according to SNL Kagan. Before the show debuted, that fee had declined to 21 cents in 2006 from 22 cents in 2005. The channel is available in more than 95 million homes.
"Mad Men" has "raised the game for our brand," said Charlie Collier, president-general manager of AMC, which is part of Cablevision Systems' Rainbow Media Holdings. The program "has absolutely raised our ability to monetize the network," he added.
Up next is an effort to turn "Mad Men" into merchandise, said Lionsgate's Ms. Stern. Already, the company is exploring ways to extend the show into cocktail culture and furnishings, even clothes.
And a one-time promotional idea -- Lionsgate has in the past enlisted the "Mad Men" cast to sing as part of a "Mad Men Revue" -- might have potential over time, she said.
Leave a comment
Comments 99
Nick Stamoulis
Mad Men is one of the best written, directed and acted series to ever be shown on any type of network TV. There is a reason why it has done and continues to do so well...
Personally I like the fact that I am 1 out of 1.81 million devout followers of the show. As for merchandising, I can't wait to scoop it all up!
Olmsted Falls remodeling
Thank you for a great post
Huntingtown remodeling
Wonderful to read!
SEO Outsourcing
Good post, thanks
Bruce Robinson
Has anyone considered that many people in the advertising community watch Mad Men (whether Live or Time Shifted). However, people who work in this industry are not allowed to be part of the Nielsen sample. Therefore, contributing to a smaller audience. Ironic? I think maybe so.
modern furniture
Excellent job.
Used Propane Tanks
Great post!
Baby Furniture
Excellent job.
Swiss Replica Watches
Thanks for your visiting this www.hello-free.com/freebies online store.
Stevens Point Remodeling
Great post!
nfl jerseys wholesale
Apple now has Rhapsody as an app, which is a great start, but it is currently hampered by the inability to store locally on your iPod, and has a dismal 64kbps bit rate. If this changes, then it will somewhat negate this advantage for the Zune, but the 10 songs per month will still be a big plus in Zune Pass' favor.
Cosatto
Wonderful to read!
Nursery Furniture
Wonderful to read!
SEO Companies
Good post, thanks
John Potter
Great blog, appreciate the effort put into this post! Thanks! :D
John Potter
Very informative, thanks for clearing up some issues for me! :)
kids nhl jerseys
If you're still on the fence: grab your favorite earphones, head down to a Best Buy and ask to plug them into a Zune then an iPod and see which one sounds better to you, and which interface makes you smile more. Then you'll know which is right for you.
New Orleans Saints
I cant believe the NHL is going to risk losing one of the best players in his prime to the KHL
nhl jerseys wholesale
I like this sport. You like it? what you think of it? If you have some time, it may wish to continue your article to share with you the happiness.
Hipolito M. Wiseman
Sorry for the huge review, but I'm really loving the new Zune, and hope this, as well as the excellent reviews some other people have written, will help you decide if it's the right choice for you.
Buy Backlinks
This is the best blog I've ever seen in my life! I really appreciate you taking the time out of your busy day to share your this with everyone.
Watch Replicas
Fine Watches on Sale for Ladies and Men at Discount Prices. If you are interested in buying Genuine watches, take a look at our Store, Shop. www.replicaseller.com/replica-iwc-watches-paypal/Pilot
Imitation Watches
Fine Watches on Sale for Ladies and Men at Discount Prices. If you are interested in buying Genuine watches, take a look at our Store, Shop. www.replicaseller.com/replica-breitling-watches-paypal/Breitling-Bentley-GT
Buy Backlinks
High quality info here! Keep up the great work. I love the feelings being expressed.
Replica Watches
Fine Watches on Sale for Ladies and Men at Discount Prices. If you are interested in buying Genuine watches, take a look at our Store, Shop. www.replicaseller.com/replica-rolex-watches-paypal/day-date
Link Building
Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.
Buy Backlinks
I really like the colors here on your blog. did you design this yourself or did you outsource it to a professional?
Buy Links
Interesting thoughts here. I appreciate you taking the time to share them with us all. It's people like you that make my day :)
Buy Backlinks
Great blog!! You should start many more. I love all the info provided. I will stay tuned :)
Ottawa Senators jerseys
Ice hockey is an interesting exercise, I like itwholesale cheap nhl nfl jerseys.
Buy Backlinks
Keep focusing on your blog. I love how we can all express our feelings. This is an extremely nice blog here :)
Buy Backlinks
I love your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz reply back as I'm looking to create my own blog and would like to know wheere u got this from. thanks
Link Building Services
Kudos to you! This is a really good blog here and I love your style of writing. How did you get so good at blogging?
BMX Bikes
You make blogging look like a walk in the park! I've been trying to blog daily but I just cant find writing material.. you're an inspiration to me and i'm sure many others!
Siberian Husky Training
Love the blog here. Nice colors. I am definitely staying tuned to this one. Hope to see more.
Link Building Services
Keep focusing on your blog. I love how we can all express our feelings. This is an extremely nice blog here :)
Link Building Services
I agree with your thoughts here and I really love your blog! I've bookmarked it so that I can come back & read more in the future.
Backlinks
Kudos to you! This is a really good blog here and I love your style of writing. How did you get so good at blogging?
Offshore Team
Interesting thoughts here. I appreciate you taking the time to share them with us all. It's people like you that make my day :)
leafs hockey jerseys
I like this sport. You like it? what you think of it? If you have some time, it may wish to continue your article to share with you the happinesswholesale cheap nhl nfl jerseys.
Backlinks
I love your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz reply back as I'm looking to create my own blog and would like to know wheere u got this from. thanks
Sovety
Hehe, u cant be serious??
Replica Handbags Top
At night the temperature drops below the freezing point, to disentangle the trees slowly, the night wrapped in a blanket of silence, too cold for the strumming of the crickets and frogs with Replica Handbags Top .
Spanish Language Schools
You make blogging look like a walk in the park! I've been trying to blog daily but I just cant find writing material.. you're an inspiration to me and i'm sure many others!
Link Building
Nice!! Great Ifo. Great People. Great Blog. Thank you for all the great sharing that is being done here.
Al Berken
This will be the perfect blog for anybody who desires to understand about this subject. You realize so a lot its virtually difficult to argue with you (not that I truly would want.!.HaHa). You absolutely place a brand new spin on a topic thats been published about for many years. Superb stuff, just terrific!
Link Building Services
Interesting thoughts here. I appreciate you taking the time to share them with us all. It's people like you that make my day :)
Backlinks
Neat blog layout! Very easy on the eyes.. i like the colors you picked out
Cornelius Barribeau
I like it very much! Just admirable! Your authorship manner is pleasing and the way you embraced the topic with grace is exemplary. I am intrigued, I assume you are an master on this issue. I am subscribing to your updates from now on.
Link Building
Hey how are you doing? I just wanted to stop by and say that it's been a pleasure reading your blog. I have bookmarked your website so that I can come back & read more in the future as well. plz do keep up the quality writing
Andrew Pelt
Hands down, Apple's app store wins by a mile. It's a huge selection of all sorts of apps vs a rather sad selection of a handful for Zune. Microsoft has plans, especially in the realm of games, but I'm not sure I'd want to bet on the future if this aspect is important to you. The iPod is a much better choice in that case.
Link Building Services
I love the way you write and also the theme on your blog. Did you code this yourself or was it done by a professional? I'm very very impressed.
lung cancer chemotherapy
Hehey great post man! I like how we wrote it! I really like reading your place, Anyways Have a cozy Day
Kvepalai moterims
This is great news! Looking forward to see more.
milchtitten
I like your blog.
Fake Handbags China
If you are looking for beautiful Fake Handbags China that online wholesale business, access, and dispose of property may seek SaleHoo. It is absolutely a good idea, this kind of wholesale products to its wholesale business, especially if you buy with SaleHoo. Many women around the world need and want your products and when will they be able to market your business, then that is sure to be loyal customers. But for this you need your company, if a person know in the world and can reach large handbags easily the interests of the people do. To install your online business and you will find wholesale handbags wholesale suppliers SaleHoo that deliver high quality, you might need.
Buy Links
Great wordpress blog here.. It's hard to find quality writing like yours these days. I really appreciate people like you! take care and see you soon
Web Designer Phoenix
Nice!! Great Ifo. Great People. Great Blog. Thank you for all the great sharing that is being done here.
Ferienwohnungen Nordsee
I like your blog.
Phoenix Web Design
Nice blog here! Also your website loads up fast! What host are you using? I wish my website loaded up as fast as yours lol
Web Designer Phoenix
I would like to start my own blog one day. This was a really nice blog that you made here. Keep up the success :P
Singapore Business Directory Freelancer Listings Classifieds
I am extremely impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you customize it yourself? Either way keep up the nice quality writing, it's rare to see a nice blog like this one these days.. :)
Cheap Timberland Boots
Thanks for the info…this blog has never let me down..and by the way, i love your theme. Catch your next post..Bye
iphone software development kit
Nicely said, agree with pretty much everything there. Thanks :D
Freeman Kenson
Thank you just for this blog. Thats all I can say. You most surely have produced this blog into something thats eye opening and significant. You clearly know so a lot concerning the subject, youve coated so many bases. Great things from this part with the web. Once again, thanks from this blog.
Video Games
This is the best blog I've ever seen in my life! I really appreciate you taking the time out of your busy day to share your this with everyone.
Buy Links
High quality info here! Keep up the great work. I love the feelings being expressed.
Buy Backlinks
I agree with your thoughts here and I really love your blog! I've bookmarked it so that I can come back & read more in the future.
Seo Services
Neat blog layout! Very easy on the eyes.. i like the colors you picked out
Backlinks
I agree with your thoughts here and I really love your blog! I've bookmarked it so that I can come back & read more in the future.
Seo Services
Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.
Buy Links
You make blogging look like a walk in the park! I've been trying to blog daily but I just cant find writing material.. you're an inspiration to me and i'm sure many others!
Las Vegas Seo
Kudos to you! This is a really good blog here and I love your style of writing. How did you get so good at blogging?
Las Vegas Web Marketing
Love all the opinions expressed here! How is everyone? Love how everyone expresses whatr they feel :)
Backlinks
Great wordpress blog here.. It's hard to find quality writing like yours these days. I really appreciate people like you! take care and see you soon
Debt Collectors
Nice blog here! Also your website loads up fast! What host are you using? I wish my website loaded up as fast as yours lol
Collections
Love the blog here. Nice colors. I am definitely staying tuned to this one. Hope to see more.
cheap uggs
I have a brand new 1 for that worst:
Buy Backlinks
I agree with your thoughts here and I really love your blog! I've bookmarked it so that I can come back & read more in the future.
teens lolitas free6
Online dating benefits and advantages - Free chat, Free singles ...: Online dating is one of the simplest ways to communicate people ...|Dating_Source|
Gregory Willies
I am thankful that I detected this web blog , exactly the right information that I was searching for! .
Rolex Replica Watches
In this collection you will find a new version of an old favorite design, which is now a horizontal rectangle which is pretty clunky, the library screen. It has to make more turns and a long run.
Get Backlinks
Great blog!! You should start many more. I love all the info provided. I will stay tuned :)
Link Building
Way to focus and straight to your point, i love it. Keep up the work people. Dont let anyone stop us bloggers.
Get Backlinks
Love all the opinions expressed here! How is everyone? Love how everyone expresses whatr they feel :)
samsung lcd hdtv
Took me moment toward study every one of of the commentary, however I in reality loved the commentary. It proved being actually ready to lend a hand to me and I am constructive to every one of the commenters here! It’s in general polite when you can not just be informed, but in adding entertained! I am optimistic you had pleasant writing this write-up.
Ganhar Grana
Your post could be very informative and produce a better understanding of what you've gotten introduced up. Thank you
north Face On Sale
great write-up mate but how do I get your rss feed?
Lance No
Thanks for the interesting piece of work. I will be taking advantage of the amazing information on this blog. I will be returning!
Ugg Sale
AOL no.one? th is is joke?-
Backlinks
I really like the colors here on your blog. did you design this yourself or did you outsource it to a professional?
Link Building
Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.
Buy Links
I love the expression. Everyone needs to express there own opinion and feel free to hear others. Keep it up :)
Get Backlinks
I really like the colors here on your blog. did you design this yourself or did you outsource it to a professional?
Leland Works
Fantastic site=) I am going to want a decent amount of time to think over this writing.
Free Porn
I am extremely impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you customize it yourself? Either way keep up the nice quality writing, it's rare to see a nice blog like this one these days.. :)
Xnxx
You make blogging look like a walk in the park! I've been trying to blog daily but I just cant find writing material.. you're an inspiration to me and i'm sure many others!
Link Building
Amazing freakin blog here. I almost cried while reading it!
Porn
I love the way you write and also the theme on your blog. Did you code this yourself or was it done by a professional? I'm very very impressed.