Logo

Conan’s TBS Show Nears Leno and Letterman Pricing–A Conan O’Brien Spot Costs $30,000 to $40,000, but Package Deals Complicate Comparisons

Aug 26, 2010  •  Post A Comment

By Brian Steinberg
Advertising Age

Do advertisers consider Conan O’Brien’s upcoming cable show equivalent to Jay Leno and David Letterman’s programs on broadcast networks?

Time Warner’s Turner cable unit is securing $30,000 to $40,000 for 30-second berths in Mr. O’Brien’s show on TBS starting this November — an eyebrow-raising figure because it’s close to the cost for commercials during NBC’s "Tonight Show with Jay Leno" and CBS’s "Late Show with David Letterman," according to ad buyers. Cable shows typically draw smaller audiences than broadcast programming but in recent years that gap has begun to narrow.
"The value they are charging is in the ballpark" of the broadcast networks’ late-night prices, said one buyer. The price of a 30-second ad on "Tonight" or "Late Show" can range from $30,000 to $45,000, buyers estimated.

Turner has aggressively told marketers that commercials during Mr. O’Brien’s much-anticipated show carries similar value to those during Mr. O’Brien’s "Tonight Show" on NBC last year. "Overall the pricing we’ve achieved for Conan’s new show is comparable to that of late-night programming on broadcast television," a Turner spokesman said, declining to comment on specific prices. "What we continue to do, whether it involves Conan or other original programming, is to offer premium content that creates a great environment for advertisers."

There is enough complexity in the ad sales process that direct comparisons are difficult. But establishing the value of Mr. Conan’s new program is crucial to Turner. The cable unit has forcefully been adding to its programming lineup, part of a broader effort to give advertisers "broadcast replacement" fare that attempts to mimic broadcast’s reach at more attractive prices. Turner has added several dramas to its TNT network, snatching up cult-favorite cop show "Southland" after NBC dropped it last year, for instance. It also formed a joint effort with CBS to show a good chunk of the NCAA men’s basketball championships across its many cable outlets.

But Mr. O’Brien isn’t a must-see sports event or a favorite drama. His cable debut will further fragment the late-night audience, and his show’s 11 p.m. berth could also vie for young male viewers with Comedy Central’s "Daily Show with Jon Stewart" or even the Adult Swim programming block on the Cartoon Network, a Turner sibling within Time Warner.
There is a significant number of viewers, however, to fight over. "Daily Show" has captured a bigger average audience of people between the ages of 18 and 49 — around 861,000 viewers — this season to date as of Aug. 15 than ABC’s "Jimmy Kimmel Live." But ABC’s "Nightline," CBS’s "Late Show"and NBC’s "Tonight" bring in the lion’s share of this demographic, the one that most advertisers covet. "Nightline" captured about 1.27 million viewers from 18 to 49 in the season to date through Aug. 15, while "Late Show" drew 1.21 million and "Tonight" averaged 1.41 million, according to Nielsen.

In its outreach to ad buyers, Turner guaranteed that Mr. O’Brien’s ratings among audiences aged 18 to 49 would match those of Mr. Letterman and run about 15% below those of Mr. Leno, according to a person familiar with the company’s offer to advertisers. Turner now believes Mr. O’Brien’s 18-to-49 ratings could be just 10% below those of Mr. Leno, this person said.

Buyers expect robust ratings for the first few weeks of Mr. O’Brien’s program, but also believe they’ll have to wait until January to see if his ratings are sustainable. Indeed, according to two people familiar with the situation, some ad buyers have tried to see whether Turner would take lower ad rates for the first quarter of 2011 in case Mr. O’Brien’s show cools over time. Turner refused to negotiate such deals, according to these people.

Turner has been selling packages of ad inventory for Mr. O’Brien that could include a marketer’s commercials showing up not only in the first-run broadcast of his new program but also in a repeat later the same night, according to several ad buyers and the person familiar with Turner’s offer. A small number of packages aimed at keeping advertisers who bought time in lower-rated, lower-priced comedies last season but who could find the new prices prohibitive call for ads to run in Mr. O’Brien’s show as well as in "George Lopez Tonight," the TBS companion comedy show that will also run two times in late night, these people said.

Arranging such parcels of ad inventory prompts the question of whether it lowers the ultimate cost of a single ad unit. "I don’t think anybody that I represent has bought a ‘Conan-only’ package," said one media-buying executive. "Most advertisers do business across multiple dayparts with the network, and actually with both of their entertainment networks, so it’s hard to isolate [a single unit price]." Turner also owns TNT, as well as TruTV, Cartoon Network and TCM. Broadcast networks also make use of packages to sell late-night programs, ad buyers said.

Advertisers are likely to structure their schedules so the majority of their commercials appear during the first run of Mr. O’Brien’s show, another buyer said.

Sales for Mr. O’Brien’s show have been robust, according to buyers. Movie studios have shown strong interest in the first week of the program, and so-called "scatter" advertising, or commercials purchased closer to air date, for the show’s run in the fourth quarter is close to being sold out, according to the person familiar with Turner’s offer to advertisers.

Buyers, however, will be making sure they get the ratings they’ve been promised. "There’s a lot of speculation about how well he’s actually going to do," said one buying executive.

 

54 Comments

  1. Thanks for your visiting this http://www.hello-free.com/freebies online Free WebSite.

  2. You are such an amazing writer. Wishing you a strength and peace that surpasses all understanding as you continue to walk the high road … you are amazing, and I honor you for being YOU! You represent grace and dignity … with a smile that melts anyone blessed to be on the receiving end of it. God Bless you Always, Carrie!!!!

  3. Nice!! Great Ifo. Great People. Great Blog. Thank you for all the great sharing that is being done here.

  4. This is good info! Where else can if ind out more?? Who runs this joint too? Keep up the good work πŸ™‚

  5. 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

  6. Kudos for the great article. I am glad I have taken the time to learn this.

  7. I cant believe the NHL is going to risk losing one of the best players in his prime to the nHL

  8. 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.

  9. Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.

  10. Neat blog layout! Very easy on the eyes.. i like the colors you picked out

  11. This is good info! Where else can if ind out more?? Who runs this joint too? Keep up the good work πŸ™‚

  12. I believe your weblog is nice! I found it on Google this morning. I believe I will come back another day, thank you.

  13. I love the expression. Everyone needs to express there own opinion and feel free to hear others. Keep it up πŸ™‚

  14. Way to focus and straight to your point, i love it. Keep up the work people. Dont let anyone stop us bloggers.

  15. I would like to start my own blog one day. This was a really nice blog that you made here. Keep up the success πŸ˜›

  16. Neat blog layout! Very easy on the eyes.. i like the colors you picked out

  17. 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

  18. Love the blog here. Nice colors. I am definitely staying tuned to this one. Hope to see more.

  19. 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

  20. High quality info here! Keep up the great work. I love the feelings being expressed.

  21. Hehe, u cant be serious??

  22. Love the blog here. Nice colors. I am definitely staying tuned to this one. Hope to see more.

  23. Amazing freakin blog here. I almost cried while reading it!

  24. 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

  25. Nice!! Great Ifo. Great People. Great Blog. Thank you for all the great sharing that is being done here.

  26. 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.

  27. Love the blog here. Nice colors. I am definitely staying tuned to this one. Hope to see more.

  28. Each and every Cape Town property in this entire area is regarded as a good buy. There is a huge variety of types of Cape Town properties. If you want a small lock-up-and-go flat or a luxurious mansion then the Atlantic Seaboard can give you exactly what you want. There are Cape Town properties situated on the cliffs or on the beachfront of Bantry Bay and Clifton. You will find some of the most exclusive and private Cape Town properties right here.

  29. I like your blog.

  30. This is good info! Where else can if ind out more?? Who runs this joint too? Keep up the good work πŸ™‚

  31. 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.

  32. 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.

  33. 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.. πŸ™‚

  34. Neat blog layout! Very easy on the eyes.. i like the colors you picked out

  35. High quality info here! Keep up the great work. I love the feelings being expressed.

  36. 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

  37. Great blog!! You should start many more. I love all the info provided. I will stay tuned πŸ™‚

  38. Interesting layout on your blog. I really enjoyed reading it and also I will be back to read more in the future.

  39. 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!

  40. 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.

  41. Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.

  42. i like th is blog site also bad you have so quite a few unrelated comments

  43. High quality info here! Keep up the great work. I love the feelings being expressed.

  44. 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!

  45. That is in all probability among the finest or among the best articles I?e seen in fairly some time since my professional profession in the field. I surely recognize your poin to view and never try to remain bias on specific idea. Preserve it up.

  46. High quality info here! Keep up the great work. I love the feelings being expressed.

  47. Dreamin. I love blogging. You all express your feelings the right way, because they are your feeling, focus on your blog it is great.

  48. I’d enjoy to discover out how lots of a large number of bucks Trollback + Firm were handed more than for their unbelievably lame logo. I assume I did a thing like that in university thirteen years ago.

  49. Hmmm. I’d have thought that pepsi would allow it to be to your worst of 2009 also.

  50. I love the expression. Everyone needs to express there own opinion and feel free to hear others. Keep it up πŸ™‚

  51. Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.

  52. Way to focus and straight to your point, i love it. Keep up the work people. Dont let anyone stop us bloggers.

  53. Interesting layout on your blog. I really enjoyed reading it and also I will be back to read more in the future.

  54. Great info!! Going to require a bit of time to think about the site=)

Leave a Reply to San Jose Sharks jerseys Cancel Reply

Email (will not be published)