NBC Universal: Fewer ads, bigger uplift

Industry Contributor 29 Apr 2019 - 2 min read

NBC Universal: Fewer ads, bigger uplift

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NBC Universal says its 'prime pod' ad format, which gives 60 seconds of premium airtime instead of two to three minute ad breaks, is delivering double-digit uplift for brands. Advertisers are also paying the (much) higher asking prices (Adweek).

Adweek’s story details the gains:

programme favourability + 28%
brand awareness + 27%
brand interest +25%
purchase intent +11%

The network's studies also suggest the bigger a logo, and the longer it is on screen, the better the recall (which creative types will hate). Meanwhile fresh creative increases both recall and purchase intent (which creative types will like).

Laura Molen, NBCU president of advertising sales and partnerships, said viewers were "very vocal in telling us, in all forms of research, that this is the way to do ads".

With the numbers NBC Universal is reporting, lower ads and less clutter is working for brands in a big way.

Adloads are a crucial issue that requires a recasting of the debate around efficiency versus effectiveness. And while industry dithers on a direction, it continues to push viewers to alternate ad-free options.

Australian broadcasters launched trials about a decade ago and in the past two years but failed to excite the market. Buyers and advertisers can't fathom paying more for airtime when TV audiences are in decline - but price-lead decisions will only lead to ad loads that further erode the viewer experience and push them elsewhere. We have a NIMBY conundrum (Not In My Back Yard).

Some flexibility is required from both sides and the Americans seem to be ahead on this front.

NBC Universal said it sold 80% of available prime pods at its up fronts, reportedly at a 75% premium versus standard ad slots. That contrasts with earlier market research by New York outfit Advertiser Perceptions. Its survey found 42% of advertisers planned to spend more with networks that reduce ad loads, but on average were only prepared to pay a 7% premium (Wall Street Journal).