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KANTAR MEDIA REPORTS ACADEMY AWARDS SPENDING REACHED $720 MILLION


OVER THE PAST 10 YEARS

Historical Advertising Data Showcases Biggest Spenders,


Ad Pricing Trends and A Viewing Rebound

New York, NY, February 14, 2011 – With the Super Bowl in the history books, the stage is now clear for
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the next high-profile TV advertising event: the 83 Academy Awards on February 27, 2011.

Sometimes referred to in advertising circles as “the Super Bowl for women”, the event is not marked by
the hype surrounding its TV commercials that is a defining characteristic of the football Super Bowl. Aided
by the combination of Hollywood celebrities, high fashion and the unpredictability of who will win and what
they will say in their acceptance remarks, the Academy Awards follows its own course and in doing so
continues to be a marquee franchise for advertisers.

Kantar Media Intelligence has once again searched its extensive database to compile key figures and
trends on Academy Awards advertising. According to these figures, marketers have spent almost $720
million during the past ten years to advertise during the live network TV broadcast of the awards
ceremony.

Advertising Rates and Revenue in The Academy Awards


The average price of a 30-second unit in the 2010 Academy Awards was $1.4 million and the program
earned $70.0 million of ad revenue. These amounts were up modestly from 2009 when ad sales efforts
were hit by the double whammy of a deepening recession that caused marketers to curtail spending and
the prospect of an actors’ strike. 2010 was far below the peak pricing and revenue achieved during the
period of 2006-08.

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Academy Awards:
Advertising Rates and Revenue: 2001-2010

Avg Cost :30 Unit Total Ad Spend


Year ($000) ($ millions)
2001 1,450 61.6
2002 1,290 63.2
2003 1,355 65.0
2004 1,503 78.2
2005 1,503 72.1
2006 1,647 80.7
2007 1,666 80.0
2008 1,689 81.1
2009 1,307 68.0
2010 1,400 70.0

Source: Kantar Media

For the 2011 telecast, ABC’s initial asking price for a 30-second spot is around $1.7 million according to
published reports in Advertising Age.

Top Advertisers
A small number of blue-chip marketers dominate the rankings of top spenders in the Academy Awards.
Over the past five years, more than 50 percent of total ad revenue has come from five companies.

Top Five Advertisers In The Academy Awards:


2006-2010

# of Years With
Ad Spend Ads In The
Rank Company ($millions) Show
1 Coca Cola 49.2 5
2 JC Penney 45.6 5
3 General Motors 38.3 3
4 American Express 33.3 5
5 MasterCard Intl 28.2 4

Source: Kantar Media

General Motors last advertised in the 2008 ceremony before bowing out in a cost-cutting move. Hyundai
has been the exclusive auto advertiser – and the single largest sponsor – in each of the last two
broadcasts and will be present again this year.

First Time Advertisers


Throughout much of the past decade, the Academy Awards had a stable core of perennial sponsors. The
low turnover coupled with stiff limits on the total amount of commercial time made it difficult for new
marketers to gain entrance to the program.

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The recent recession led to both sponsor withdrawals and price reductions, creating a rare opportunity for
other companies to buy in. Forty-eight percent of the marketers in 2010 were first-timers, marking a surge
in this metric for the second consecutive year.

Number of Advertisers In The Academy Awards


2006-2010

2006 2007 2008 2009 2010


All Advertisers 17 15 13 18 21
First-Timers - # 1 1 2 6 10
First-Timers - % 6% 6% 15% 33% 48%

Source: Kantar Media

The freshman class of 2010 included Ameriprise, Estee Lauder, Intel, Kimberly-Clark and Samsung.

Ad Clutter In The Academy Awards


The Academy Awards runs against the general trend of stuffing more ad content into TV programming
and offers marketers a less cluttered environment. In granting broadcast rights to the program, the
Academy limits the amount of commercial time.

Over the past decade, the show has consistently averaged 8-10 minutes per hour of national commercial
messages. This includes paid ads plus promotional plugs from the network for its own programming.

Network Ad Time (mm:ss) In The Academy Awards

Year Total Broadcast Average Hour


2001 30:15 8:38
2002 32:50 7:27
2003 31:30 8:46
2004 35:05 9:14
2005 31:00 9:25
2006 34:30 9:34
2007 28:15 7:34
2008 29:50 8:47
2009 32:20 9:07
2010 35:20 9:40

Source: Kantar Media

The comparable level for the Super Bowl is about 13-14 minutes per hour and for network prime time
programming it is typically 14-16 minutes per hour.

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TV Ratings For The Academy Awards
Audience ratings for the 2010 Academy Awards were the highest since 2005 and up sharply from the
shrunken levels of 2008-2009. An expanded nomination list for the Best Picture award and effective
leveraging of social media to promote the TV telecast were important contributors to the viewing gains.

Academy Awards
Year HH % Rating Index
2001 26.2 100
2002 25.4 97
2003 20.4 78
2004 26.0 99
2005 25.4 97
2006 22.9 87
2007 23.0 88
2008 17.9 68
2009 19.6 75
2010 23.3 89

Source: Kantar Media Analysis of Nielsen data

In any given year, audience interest in the awards ceremony may rise or fall based on the slate of
nominees for major awards, their popularity at the box office and the general buzz surrounding them.
Perceptions and buzz around the host/hostess for the show can also affect ratings.

The Graying Audience


In addition to number of viewers, demographic makeup is also an important consideration to advertisers
seeking a targeted audience. Across the TV medium as a whole, the age of the viewing audience has
been drifting upwards and the Academy Awards has not been immune to this phenomenon. In 2010, the
broadcast’s median age was 50.0 years which is on par with the norm for all prime time broadcast
network programming.

However, compared to other major awards shows the Academy Awards audience is older than both the
Golden Globes and the Grammy Awards.

Median Age of The TV Audience

2010 Academy Awards 50.0


2010 Golden Globes 49.7
2010 Grammy Awards 42.1

Source: Kantar Media analysis of Nielsen data

For 2011, there is a multi-pronged effort to attract younger viewers. First-time co-hosts James Franco and
Anne Hathaway are one part of the strategy. In another first, the Oscar.com web site will stream live
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during the broadcast to offer expanded coverage of red carpet activities and unique access to a variety of
backstage areas, including the press room where interviews are conducted with winners. Social media
and mobile applications will also be integrated to help make the event more immersive and appealing to
younger audiences.

About Kantar Media


Established in more than 50 countries, Kantar Media helps clients master the world’s multimedia momentum
through analysis of print, radio, TV, internet, cinema, mobile, social media, and outdoor worldwide. Kantar
Media offers a full range of media insights and audience measurement services through its global business
sectors – Intelligence, Audiences, TGI and Custom. Kantar Media companies also include Compete,
Cymfony and SRDS. Drawing upon the deepest expertise in the industry, Kantar Media tracks more than 3
million brands and delivers insight to more than 22,000 customers worldwide. www.KantarMediaNA.com

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