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Clarification on national advertisers

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  • Clarification on national advertisers

    For local broadcast TV stations (ABC), 99% of national advertsing comes to the station through an advertising agency. The advertising agency is billed by the station and the advertiser is billed by the agency.

    Typically there is not going to be a problem when the race is shown in a couple markets - because the advertiser is not billed for it. Additionally, these advertisers understand that ratings drive demand and the IRL ratings mean a possibility of it not being showed.

    Now eventually the advertiser may see that it is not getting air time in various markets during IRL races and just needs to decide if that is a problem or not.

    This is much more of an issue for a sponsor of a car. That car will not be shown in the Detroit market (10th largest TV market). In theory, the more eyeballs the better for those sponsors.

    A make good will only happen if the advertiser paid for the spot. Either the spot will be run again in another time slot of the advertiser will get a full or partial refund.

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