CBS, NBC Drop Election Night Ads in Ratings Move

CBS and NBC, both facing a severe slump in advertising revenues, have made the unusual decision to drop commercials from next Tuesday’s election coverage in moves designed to bolster the ratings of their entertainment shows.

The decision is the most sobering example yet of how the soft advertising economy is affecting the once-robust television industry.

Earlier this week, ABC was unable to sell at least six spots in “Monday Night Football,” usually one of the highest-rated shows of the week. All three networks have had to delay making program changes so as not to forfeit tens of millions of dollars in badly needed sponsor commitments.

Although likely to be promoted as a high-minded public service initiative, network executives privately attributed the reason for dropping commercials to the fact that programs without commercials are not rated by the A. C. Nielsen Co.

The networks have just entered the crucial November “sweeps” period, when their performance determines how local affiliates will set ad rates for the next quarter. By deleting little-watched election coverage from the ratings, CBS and NBC will be able to boost their sweeps numbers. “This makes it a level playing field,” an NBC executive said about the two networks’ strategies. “We are anticipating a close sweeps race, and elections get marginal ratings anyway.” ABC plans to run advertisements during its election coverage.

At CBS, sources said, the decision to drop commercials from election coverage came at the urging of the entertainment division in Hollywood, which has recently seen CBS move up to second place this season. It was feared that a low-rated news program could depress CBS’ ratings during the sweeps, just as the network was picking up momentum for its entertainment shows.

“The great byproduct of this is there will be no rating number,” said a senior CBS executive in New York. “That should help in the sweeps.”

CBS News will produce a two-hour block of election coverage at a cost of more than $400,000. In addition, the network will forgo more than $1 million in ad revenue.

All through the 1980s, the networks gradually cut back on the time they devoted to election-night coverage, mostly because the cost of hiring hundreds of part-time employees is hard to justify in an age of tight budgets and limited viewer interest.

Like low voter turnouts, ratings for election coverage are notoriously weak. During the 1988 presidential election, ABC and NBC each attracted about 10% of the TV audience, while CBS pulled in only 9%. Typically, the three networks each attract between 13% and 15% of the audience on any given night.

Advertisers, who are under pressure to reduce expenditures as a recession looms, frequently target news programs first when looking for ways to trim their ad budgets. CBS “tried to sell it, but there was no interest, so they junked it,” said David Corvo, vice president of public affairs programming at CBS News.

Earlier in the week, CBS broadcast a one-hour tribute to the late CBS founder William S. Paley, also without commercials. Publicly, CBS officials said the decision to withhold commercials from the Paley special had been made long ago out of respect for the late chairman, who died Oct. 24. But privately, some at CBS contended that advertising was not sold out of fear the program would drag down sweeps ratings.

CBS is planning to broadcast two hours of election coverage between 9 p.m. and 11 p.m., when it would normally run a movie. ABC and NBC will start their coverage at 10 p.m. and sign off at 11 p.m. for local news. They will then return for an 11:30 p.m. “wrap-up.” NBC said it would run commercials during the post-11:30 p.m. portion.

ABC still plans to run commercials during its election coverage but, reportedly, at heavily discounted rates. Thirty-second commercials on election night were said to be selling for about $50,000, compared to more than $100,000 usually paid for a prime-time spot.

Viewers will still see a handful of commercials, however, since affiliates will continue to run spots during “cut-away” segments when the network hands over seven minutes of air time for the reporting of local races.

CBS, NBC