Digital / Streaming 15 NOV 2019

NBCU LAUNCHED ITS AD SALES STRATEGY FOR ITS NEW STREAMING SERVICE

The company is seeking about ten marketers as sponsors for the launch of its Peacock streaming service, with packages costing as much as $25 million, people familiar with the matter said.

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NBC Universal is seeking about ten marketers as sponsors for the launch of its Peacock streaming service, with packages costing as much as $25 million, people familiar with the pitch told AdAge.

Currently, the company is out with a $25 million package and a $15 million package. The $25 million package would guarantee marketers a 10% share of voice on the platform for 18 months, while the $15 million buy would give marketers a 10% share for six months, at which point it would be reduced to a 5% share for the remaining 12 months. This would open up inventory for more advertisers to buy commercials on the streaming service.

NBC is not guaranteeing numbers of subscribers or impressions, according to the sources, which could be a point of contention in negotiations.

Marketers are certainly keeping an eye on Peacock, since it is one of the only high-profile streaming services poised to debut with commercials. And being a launch partner could offer the potential for marketers to help shape the ad model in this new ecosystem.

Unsurprisingly, ad loads will be much lower than on linear TV. Peacock will be deploying prime pods, which are the one-minute commercial breaks that NBCU has been utilizing on its linear networks over the past year. Movies will be presented with more-limited commercials.

NBC is also putting frequency caps in place, so consumers will not be served the same ad from a brand over and over. “They are being smart about ad exposure,” one person said.

NBCU has been stealthy about their ad plans for Peacock, which is slated to debut in April. According to reports, NBC is considering giving Peacock away for free to anyone, even if they don’t subscribe to a cable or satellite package. Subscribers would then pay for an ad-free version.

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