Amid a ratings plunge and star-athlete stumbles, NBCU and media agencies with Olympics clients are haggling over 'make goods,' or extra ad inventory given when audience guarantees aren't met
gives American viewers a grand sports spectacle they can watch at any time they like. Advertisers, however, have begun to wring their hands as more people watch the Games at moments of their own choosing.
While NBC’s Olympics are beating competitors’ programs each night, early ratings for NBCU’s TV broadcasts are “clearly are not what NBC, our agency or our clients were looking for,” said one media buying executive. This buyer cited a lack of must-follow athlete storylines early in the competition; early-morning availability of coverage via streaming; and the absence of live fans at the Games due to the coronavirus pandemic as factors in a downturn of viewing.
The Olympics discussion between advertisers and NBCU is not a new one. As more viewers migrate to streaming, linear audiences have declined steadily for traditional TV events that range from a broadcast of an original episode of “This Is Us” or “Young Sheldon” to the annual telecast of the Oscars or the Super Bowl.
Executives at NBCUniversal have counseled advertisers to take a longer-term view, noting that there are many more nights of Games ahead that could see the emergence of star athlete performances. They are also pointing to results that require more time to gain.
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