Even with smaller audience, Oscars still attract advertisers

ByABC News
February 23, 2012, 7:54 PM

— -- With — or without —Billy Crystal, fewer and fewer folks have been watching the Academy Awards over the past decade.

So just why are so many marketers willing to pay record ad rates — near $1.7 million per 30-second slot — to go Hollywood? It could be the company that Oscar keeps.

Never mind that Academy Awards viewership has slipped 23% over the past 10 years, according to Kantar Media. Or that household audience ratings during last year's broadcast were the second smallest in history. When it comes to the Oscars, advertisers — from Hyundai to Samsung to Diet Coke— are spending big to reach free-spending movie buffs.

Marketers know that on ABC's Sunday night Oscar broadcast, they'll get "an engaged audience of Oscar enthusiasts," says Jon Swallen, senior VP of research at Kantar. That's why some 20 Oscar advertisers will:

•Roll out new products. Samsung will try to wow viewers with its biggest product launch of 2012: a "smart interaction" TV that will cost $2,000 to $3,500, depending on screen size. The Samsung ES8000, which rolls out in mid-March, responds to voice and motion commands. "The Oscars are totally aligned with what home entertainment consumers are passionate about," says Peggy Ang, vice president of marketing communications.

•Break new ads. Hyundai will show four new commercials for its new luxury car, Azera. Two of the spots, with Jeff Bridges as voice-over, feature references to movie making — and will appear only on this show. "The car has a dramatic shape which is perfect for the Academy Awards, which is all about creativity, fashion and a sense of style," says Steve Shannon, vice president of marketing.

•Break new strategies. J.C. Penney launches ads with Ellen DeGeneres that showcase the retailer's new strategy to eliminate sales, coupons and door-busters.

•Tap new markets.Anheuser-Busch InBev's upscale line of Belgian beer, Stella Artois, unveils a spot about why some folks prefer to drink the beer from a fancy chalice instead of a glass.

•Push the brand. Diet Coke will twice air a new, 60-second spot that celebrates the behind-the-scenes folks who make movies. "We want to associate with the badge that is Hollywood," says William White, group brand director.

In a new McDonald's spot, a teen girl is surprised how her fries help her to meet the boy she's ogling.