NBCUniversal hopes Megyn Kelly lures new viewers to its morning schedule when she launches a program there in the fall. But the company wants her to bring new money to the time period as well.
The Comcast-based media conglomerate is seeking massive hikes in the rates advertisers pay for the 9 a.m. slot, according to two people familiar with current negotiations. NBC has said it will launch a new show anchored by Kelly in the fall at that time. One of these people said NBC is pressing for increases in the cost of reaching 1,000 viewers – a metric known as a CPM that is integral to talks between TV networks and Madison Avenue – that could reach as high as 30%. In contrast, CPM rates for ads in broadcast primetime this season are at present expected to rise between 8% to 9% at most.
NBCUniversal declined to make executives available for comment. The company is making its Kelly pitch as part of TV’s annual “upfront” negotiations, when U.S. TV networks try to sell the bulk of their commercial inventory for the coming programming cycle.
NBCU appears to be continuing a years-long effort to get advertisers to assign higher value to TV time that has typically been seen as deserving lower cost. Last year, NBCU sought to get primetime ad prices for its late-night mainstay “Saturday Night Live” after announcing it would trim the show’s ad load by approximately 30%. In 2013, NBCU made a bid for significant CPM increases for its airing of “Modern Family” repeats on USA.
The company has reason to seek new dollars for Megyn Kelly’s new program. The average cost of a 30-second commercial in the 9 a.m. hour of “Today,” which the popular anchor’s show will replace, was a paltry $12,745 between January and April, according to Standard Media Index, a company that tracks ad spending and costs. And the price hasn’t moved upward recently. The average cost of a 30-second ad in the show in 2016 was $12,786. Top advertisers in the hour last year included Johnson & Johnson, Dannon, Progressive Insurance, Novartis and General Mills, according to Kantar Media.