It’s been an award season unlike any other ahead of Hollywood’s biggest night, the 93rd Academy Awards, which on Sunday will cap a string of pandemic-era tentpole events defined by depressed ratings and skewed schedules. But, for advertisers, the show must go on.
Despite a sustained slide in ratings, Madison Avenue isn’t giving up on Hollywood broadcasts for a reason that’s simple, if not a bit demoralizing for the TV industry: Even with viewership levels that are mediocre at best, tentpole events like the Oscars still rank among the most-watched of any programming on linear TV, excluding sports. If an advertiser wants to reach a lot of people at once, award shows are one of their best bets.
Many things have suffered since last year’s outbreak of COVID-19, and TV viewership is no exception. It’s not difficult to pinpoint a negative trend by looking at 2021’s major broadcasts: Super Bowl LV recorded the game’s lowest viewership since 2007; the Golden Globes saw a 60% drop in its audience year-over-year; and the Grammys drew the smallest crowd in its 63-year history. Even the Oscars, which were held pre-pandemic in 2020, are coming off an all-time low of 23.6 million viewers last year.
It may be that award shows don’t have the reach or staying power they once did, but brands aren’t swayed. Advertising heavyweights including Verizon, AARP, General Motors’ Cadillac, and Procter & Gamble—as well as newcomers such as Apartments.com and Grey Goose—have all spent a pretty penny to join the broadcast; ABC is asking for as much as $2 million per 30 seconds of air time, according to media buyers.
Those figures are buoyed by first-timers, not unlike this year’s Super Bowl, which saw at least 21 brands run commercials that never had appeared in the game before. Such companies tend to be “COVID-thriving brands,” Jerry Daniello, senior VP of entertainment brand solutions Disney Advertising Sales recently told Ad Age.