Oscar audience shrinking, but ad costs rising
A well-heeled audience that has to sit through ads is appealing to advertisers, says CBC's Ad Guy
With the 88th Academy Awards set to air on Feb. 28, the Oscars ceremony has been promoting itself this year with ads that talk about dreaming in gold.
Unfortunately for the Academy, on Oscar night last year, 16 per cent fewer viewers tuned in than the previous year, according to Variety.
You would think that would devalue the product that this year's host network ABC has to sell — advertising time during the broadcast.
But instead, ABC boldly hiked the price of Oscar airtime by as much as 16 per cent, with 30 seconds of airtime now selling for up to $2.2 million US — which Variety says is a new record.
In spite of millions of viewers abandoning TV for other screens, some marketers remain eager to buy ad time during programs that still draw relatively huge viewership and are watched live, which eliminates "zapping" past the commercials.
When J.C. Penney decided not to renew its sponsorship of the show after 14 years, the department store Kohl's was happy to take its place, likely as a way to attract younger millennials. This current Kohl's ad includes Star Wars characters as a subtle tie-in to the Oscars.
And it seems interacting with millennials is also what Dove had in mind last year with its #SpeakBeautiful Twitter campaign on Oscar night. Every time cruel tweets about actresses were identified, a more positive tweet was sent out in response.
In this Dove ad, we see the positive tweet appearing as a domino that knocks over hundreds of negative tweets, thereby promoting self-esteem.
A mainstay of Oscar campaigns is experiential marketing, like the 2014 Banana Republic vlog starring YouTube celebrity Justine.
In experiential marketing, brands stage exclusive events or partner with existing events that generate huge coverage and social media discussion. Justine appeared live on the red carpet wearing a gown from Banana Republic's spring collection.
In 2013, Grey Goose vodka was sponsor and cocktail supplier for Elton John's annual Oscar screening party.
Last year, Vanity Fair staged media panels, trade shows and parties for the Oscars, which it refers to as its Super Bowl.
What the Oscars offer that the Super Bowl doesn't is quality over quantity. Sure, fewer people tune in — but they're the kind of people who buy fashion, cosmetics and premium products.
Plus, the Oscars broadcast has fewer ads per hour than any other major award show, so each ad has less competition. To paraphrase the awards show's 2016 ad campaign, it's no wonder Oscar marketers dream in gold.
Bruce Chambers is a syndicated advertising columnist for CBC Radio.
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