Television’s Two Sides of Revenue

With the sour economy, declines in consumer spending and sagging prime-time rankings, network sales executives have had to work overtime to sale ads this summer. For more than a month, talks were stalled because advertisers were demanding steep cuts in pricing -- and the networks initially were refusing to give in. Several weeks ago, the impasse melted and the networks started to slowly ring up sales with major advertisers. Fox Broadcasting has said it is nearly finished selling airtime to advertisers for the upcoming season but declined to provide a dollar amount or say whether the revenue includes cuts in pricing. However, Fox conceded that it did not sell as many prime-time commercials this summer as it has in the past. That is an indication that the network held back commercial time rather than slash prices simply to make sales and move inventory. The network is confident that its new fall shows will perform well in the rankings, thus allowing the network to command higher prices later on in the year. Meanwhile, NBC is aggressively promoting the new Jay Leno show with different tactics. A teaser Web site is providing fans with a 24-hour Web cam inside Mr. Leno’s studio. Last weekend Mr. Leno started to show up on popcorn bags, soda cups and in on-screen advertisements at movie theaters. Later this month, an out-of-home advertising campaign will begin in major cities and include billboards and bus shelters. In early September, NBC will even adopt a portion of Interstate 10 in California to reiterate Mr. Leno’s time slot. Along with the Interstate 10 stunt, NBC will also mark the 10th aisle of about 700 supermarkets in 12 American markets. The network declined to say what it was spending on outreach for “The Jay Leno Show,” but just as NBC is saving in production costs by placing Mr. Leno at 10 p.m., it is saving promotional costs, too. NBC has scheduled a short commercial for “The Jay Leno Show” every day at 10 p.m. Early ads for the show highlighted the crime shows that dominate the 10 p.m. hour and promised “98 percent fewer murders” on Mr. Leno’s show. NBC’s promotional tactics for Mr. Leno involve infiltrating mundane activities and inserting Mr. Leno’s mainstream humor. That’s why the network made a push into movie theaters last weekend, most notably with a two-and-a-half minute segment on National CineMedia’s advertisement reel that runs on 16,000 screens across the country. Later in the month, Mr. Leno’s bits of comedy will also appear on airplanes, at gyms, in elevators and in New York City taxi cabs. McDonald’s, the fast-food restaurant chain, will be advertising its annual Monopoly game by hosting a “$1 Million Dollar Dice Roll” on NBC for four weeks beginning Oct. 6. On weeknights the prize drawing will occur during “The Jay Leno Show.”