Was yesterday's Super Bowl "super" for General Electric Co. (NYSE: GE)? While it is no doubt prestigious to broadcast the NFL championship, I wonder whether it's as great as it seems for the company's bottom line.GE's NBC network trumpeted in a press release that it earned $206 million in advertising revenue from 32 different advertisers. It sold the last two of the spots the night before the game. I am skeptical about this figure for several reasons.
Any numbers publicized in connection with advertising should be taken with a grain of salt. Gross billings, which often gets publicized, is a bogus number because it includes stuff that agencies charge their clients such as postage. The revenue figures publicized by NBC can be fudged in many ways. Remember, this is advertising.
I noticed that there was lots and lots of promotions for NBC programs during the game, so many, in fact, that I wonder whether the network had more difficulty selling spots than it has admitted. NBC mentions the commercials had a "record unit price" of $3 million. Broadcasting and Cable reported last month that the network was "negotiating around the $2.6-2.7 million mark. Other reports suggest that NBC is prepared to deal at the $2.8 million mark."
Also, you have to wonder if companies were as enthused about the Super Bowl this year. Did you notice those stupid Cash 4 Gold spots with MC Hammer and Ed McMahon? Most of the other spots were pretty pedestrian, though the CareerBulder ad was amusing.
Update: NBC Sports spokesman Brian Walker told BloggingStocks that the Super Bowl was a success.
"NBC sold all 69 available units within the Super Bowl for record total revenue of $206 million," he wrote in an email. "The five minutes of promotional time NBC utilized is the contractual maximum and on top of advertising."
Remember that advertisers rarely buy commercials for just one show. A marketer who bought a Super Bowl ad might have gotten time on other programs. That has not happened in past years, but the economy is causing companies to cut marketing spending, particularly on network TV. In desperate times, deals may be getting cut.
An NBC spokesman could not be reached for comment. I will add the network's comments if I get a response.
NBC signed a $600 million per year deal in 2005 with the NFL that gave it "Sunday Night Football" along with the Super Bowl in 2009 and 2012. You have to wonder whether it's worth the bother for GE shareholders given NBC Universal's weak performance.
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Reader Comments (Page 1 of 1)
2-02-2009 @ 3:33PM
jim said...
your article is filled with speculation and assumptions. just what we don't need for the current market conditions. isn't there enough of that going around already?
2-02-2009 @ 4:03PM
Rick Dahlgren said...
In addition to the NBC promotions, a number of Universal films, cable properties, hulu and GE itself were advertisers, which, by my calculation, is just moving money around within intercompany accounts.
Sheesh.....what a bunch of "Zucker's."
2-02-2009 @ 5:16PM
finely tuned and polished said...
Never mind the $200+ mil. or what they declared, or what Mr. Money bags broadcasted across the news with his billionS OF dollars investment with them and his 10% return?? Lets dig deeper into GE'S closet since they were well known for their interest in loan financing. Remember all the bad loans etc. they had around... the late eighties and 90's. Lets look closer into this so called all American company.... :NOW: !!!