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Title of the attached .pdf file: THE AD AGE 2004 TV SYNDICATION REPORT Celebrities Boost Syndication Sales AdAgeSPECIALREPORT 3.8.04 SYNDICATION

STARPrime-time ratings may be off, but as SNTA opensPOWER there’s buzz over syndicated TV’s value Download this complete Special Report as a PDF on AdAge.com as it builds on viewers’ need for familiar faces, and marketer need for a sure thing. Page S-4 at QwikFIND aap42k

NY-Chi-LA tour Simple advice Talent scout It’s in the timing INSIDE Underappreciated Syndicators heeding Rule Local spotlight gets syndicated Ad placements in syndie fare syndicators hit SNTA show on No. 1: Give women what pickup, ad interest from GM to add opportunities, potential positive notes PAGE S-5 they want PAGE S-9 hometown advertisers PAGE S-12 problems PAGE S-16

ILLUSTRATION BY ISMAEL ROLDAN March 8, 2004 | Advertising Age |S-4 AdAgeSPECIALREPORT SYNDICATION

TOP 25 SHOWS IN AD PRICING Syndicated TV shows ranked by ad price. The top five programs of 2003 maintained their positions in 2004. Host of TV superstars boost AVERAGE PRICE RANK PROGRAM SYNDICATOR PER :301 1 Friends W $221,567 2 Seinfeld S 186,632 bullish syndication market 3 Entertainment Tonight P 149,400 4 Everybody Loves Raymond K 124,379 Dominating key dayparts, 5 Will & Grace W 122,784 6 Wheel of Fortune K 82,950 syndicators see it ‘as the 7 The Oprah Winfrey Show K 81,740 8 Jeopardy! K 77,100 best value in TV today’ 9 That ’70s Show T 75,546 By RICHARD LINNETT 10 World Wrestling Ent’ment WWE 63,005 11 King of the Hill T 60,008 yndication will be the savior of 12 Dharma & Greg T 55,986 television, some TV ad executives say. While prime-time network fare 13 Frasier P 54,783 S stumbled this season, losing audience 14 Extra W 50,967 share and some advertiser holds in the second 50,451 quarter, syndication numbers and revenue are 15 Access Hollywood W holding tight, with second-quarter scatter 16 Home Improvement B 43,307 selling well. 17 Becker P 37,963 “Business is up, our ratings have remained 36,871 strong, we dominate key dayparts,” says 18 Dr. Phil K Mitch Burg, president of the Syndicated 19 Hollywood Squares K 34,001 Network Television Association, a group of 20 The West Wing W 31,179 distributors that will preview new programs for advertisers this month in a trifecta of 21 The Practice T 28,641 conferences. Syndicated programs are sold to 22 ER W 28,386 local TV stations by distributors, and are 23 Inside Edition K 28,196 scheduled largely outside of prime time. Most are barter syndication—in other words, they 24 Judge Judy P 28,100 come to TV with the bulk of their advertising 25 Live With Regis & Kelly B 21,530 presold. “Our delivery indices on audience Syndicators: composition are about 50% higher on young B = Walt Disney Co.’s Buena Vista Television Advertising Sales adults than the networks,” Mr. Burg says. K = King World Productions, a division of Viacom’s CBS Enterprises “And if you were to take all of our sitcoms P = Viacom’s Paramount Advertiser Services together, you would outreach any one of the S = Sony Pictures Television individual networks. We have seven of the T = News Corp.’s Twentieth Television top 10 favorite TV personalities in the W = Time Warner’s Warner Bros. Domestic Television Distribution country [including] Oprah, Dr. Phil, Ray WWE = World Wrestling Entertainment Romano, Regis, Ellen DeGeneres and Jennifer Aniston, who will only be available 1. Estimated cost of a 30-second national commercial unit based on Advertising Age survey of media agencies. in syndication next year,” after NBC’s “Friends” ends its network run. That could TALENT WAVE: Ryan Seacrest pulled in big numbers for Britney Spears (top). “Ellen” and “Dr. Phil” also are doing well. apply to Mr. Romano if “Everybody Loves Raymond” doesn’t return for a ninth prime- executives say. Syndicated fare raked in price larger automaker. time season in the fall. increases for the current season that mirrored However, the market giveth and the “Our delivery the double-digit increases in prime-time sales. market can taketh away. Just as syndication VALUABLE CELEBS In overall revenue, syndication climbed 12% benefited from a strong prime-time upfront Advertising Age’s annual survey of indices are 50% to $2.25 billion during the 2003 upfront in 2003, it also may suffer from an anticipated syndication ad pricing confirms the value of period, according to Advertising Age figures. flat buying season in 2004, a result of the poor these performers—the shows of all except higher on young Prime-time programming, meanwhile, rose showing of most new prime-time Ms. DeGeneres appear on Ad Age’s list of the 15% to $9.3 billion. programming that launched this past season. 25 priciest programs in syndication (see chart adults than nets” Typical syndication advertisers include At a recent media conference in New York, at top right). retail, package goods, pharmaceuticals and Irwin Gotlieb, CEO of WPP Group’s media Data released late last month from the Television Distribution; “On-Air With Ryan restaurants. But Mr. Burg says advertisers shop GroupM, predicted the prime-time Television Bureau of Advertising show Seacrest,” from News Corp.’s Twentieth that don’t usually invest in syndication are upfront this year will be down to $9 billion. syndication’s strength. Syndication ad Television; and “Dr. Phil,” from Viacom’s King doing so now. “Syndication is not necessarily going to revenue was up 15.3% in 2003, while World Productions. Highly touted as successes grow significantly or have significant network rose 3.2% and local broadcast was among off-network series (reruns of network BIG AUTO GAINS increases in pricing in the new season,” says down 5.4% (see chart on Page S-17). programs) were Sony Pictures Television’s “Our auto business is up 24%,” he says. Terri McKinzie, assistant media director at The mood at this year’s National “Seinfeld” and Warner’s “Friends.” “Everyone is looking to get the most value for Publicis Groupe’s Starcom USA, Chicago. “I Association of Television Programming But network TV continues to cast a long their dollars, and given our pricing structure don’t know that it will be a negative Executives conference in Las Vegas was shadow over syndication, from its effect on and ratings strength, we are probably the best marketplace this year, but we don’t anticipate generally upbeat (see related story on Page S-5). syndication’s prosperity to programmers value in television today.” any double-digit increases, that’s for sure. It’s Studios hawked first-run success stories with adopting network tactics like staggering the “Most automotive advertisers look at going to be a more moderate marketplace.” strong and growing audience numbers, debuts of new shows. syndication as a back-door approach, pursuing There’s a growing concern in the including “The Ellen DeGeneres Show,” from Syndication rode the coattails of a lucrative it as a local advertising venue for its dealer syndication business that the programming Time Warner’s Warner Bros. Domestic upfront prime-time TV ad market, industry groups,” says an agency media buyer for a See OVERVIEW on Page S-17 March 8, 2004 | Advertising Age |S-5

SNTA bids for marketers’ attention The lag time between the two events Under new chief execs the provides better information on product and clearances, insights on what’s returning, and a syndication associations chance to make a more informed buying decision for September, Mr. Goldstein says. reinvent their conferences But while SNTA is rich with one-on-one conversations about specific program and By JEFFERY D. ZBAR marketing opportunities, he believes NATPE will also remain in the mix for media buyers. elevance. “There is ample justification for both In a word, the Syndicated Network organizations,” he says. Television Association’s conference this SNTA’s conference is “an opportunity to Rweek is as much about being relevant to see as many people as you can,” Mr. Levy its audience as are the efforts of the National says. Moreover, the audiences are looking for Association of Television Programming different takeaway from the SNTA and Executives to revive its own January event. NATPE events, he contends. “It’s not a The prize for both groups is to keep competition. There’s no way NATPE can powerhouse syndication advertisers such as accomplish the same things.” Procter & Gamble Co. and their agencies focused on syndicated TV. VENDOR SETUP CHANGED At the same time, the differences are clear: Despite its renewed energy and panel NATPE looks to clear syndicated shows with discussions, NATPE still has its work cut out TV stations, though vendors also showcase for it, Mr. Levy says. “Rick [Feldman] has to their content for agencies. SNTA, meanwhile, do something there to make it relevant to my aims to sell marketers and their media shops constituents,” he says. “If he makes it relevant on syndicated programming. to my clients and my clients are there, then the How these groups approach the ad side of SPREADING OUT: Mitch whole convention is meaningful to me.” syndication will be crucial to their future. Burg (l.) and Rick Mr. Feldman hopes that in an age of growing NATPE already was grappling with a couple Feldman are new to media outlets and marketing opportunities, their jobs at, big problems last year when SNTA decided to respectively, SNTA NATPE’s relevance is poised to rebound. The move forward with plans to hold its own and NATPE, whose January event attracted slightly more than the conference for advertisers. Attendance at 2004 convention is 7,100 who attended in 2003, according to NATPE was lagging, and vendors were shown above. The association figures. NATPE in 2004 bowed to abandoning the exhibition floor for less execs are reinventing the movement of exhibitors off the floor and expensive hotel suites. SNTA held its how to make their into hotel suites by offering such setups to inaugural event in New York, and this year meetings more vendors. Some 290 booths were positioned on will have additional conferences in Chicago relevant to exhibitors the floor of the Sands Expo Center, with some 60 and Los Angeles. and attendees. suites in the nearby Venetian hotel serving as Complicating the situation is the fact that home to dealmaking as well. both groups have new chief executives. Rick International syndication and attendance Feldman last spring succeeded Bruce Johansen about actual product offerings remains an remain strong at NATPE. Upwards of one- as NATPE president-CEO, and SNTA early Other media important benefit of NATPE. third of attendees were from the international this year named Mitch Burg to succeed Gene However, after years of attending NATPE, market, Mr. Feldman says. DeWitt as president. are emerging. Mr. Cohen skipped the event this year and only The need for more focus on gaming and “The purpose of the SNTA day is to set up sent one person in 2003. Conversely, he’ll have DVDs is apparent, as well. Where the money a platform for our members to show the “We’re following 15 people at SNTA in New York this week, used to be in domestic syndication, other media strength of their product,” Mr. Burg says. The getting done what he needs to in less time with are emerging. “We’re following those streams,” group’s membership consists of major those streams” no travel costs. No Horizon staff will attend the he says, “though none are as strong as domestic syndicators such as Viacom’s Paramount Chicago or Los Angeles SNTA events. syndication of the 1990s.” Advertiser Services and News Corp.’s skipped NATPE this year with the intention While NATPE gets the earlier slot on the Mr. Feldman’s goal this year was to create a Twentieth Television. of hitting SNTA. calendar, some industry positive atmosphere in the While many of the available syndicated observers see an advantage to the organization “after the last couple THREE -MARKET PUSH shows already are common knowledge, Mr. SNTA events coming six weeks of years, which had been difficult Where NATPE plays out in Las Vegas, Donchin hopes to learn more about new later. Syndicators will have more Focus on for everybody on a lot of different SNTA’s focus on three major ad industry offerings, and how to get the most bang out of and fresher insights on their SNTA’s 2004 levels.” markets has struck a positive chord with what he calls an underappreciated product. offerings at the later events, Mr. spring conferences: While some agency executives media planners and buyers, says SNTA “We’ve bought a ton of syndication in the Cohen says. SNTA “will provide March 11 have replaced NATPE with Chairman Howard Levy, who’s also exec VP past, but syndication often gets the short end a marketplace in short order,” he New York SNTA on their must-go list, Mr. at Walt Disney Co.’s Buena Vista Television of the stick,” he says. “This is a good way to says. “This gives me an March 15-16 Feldman says the two play Advertising Sales. prove there’s a middle ground between opportunity for a much more in- Chicago dissimilar but complementary Others agree that with budgets down and network and cable. This is a good forum for us depth and focused look at the March 18 roles. SNTA “is really about spending tight, it’s important to keep to know over a day’s time what syndicators programming that might be Los Angeles sales,” he says. “We’re about dealmaking close to home. More than 450 have to offer and figure out how to employ available for my clients.” programming. We’re about attendees are expected at the New York event. syndication to our best advantage.” That points to the original network, syndication, spot, SNTA will provide a forum to educate The consolidation of the syndication ad rationale for the SNTA conferences, says satellite, cable—wherever programming advertisers and media planners about sales industry has resulted in ongoing Marc Goldstein, president-CEO of WPP runs.” upcoming shows, says Andrew Donchin, communications between vendors and media Group’s MindShare North America. Mr. Mr. Burg also believes synergies exist director-national broadcast with Havas’ buyers, says Aaron Cohen, exec VP-director Goldstein had four people at NATPE and between the two organizations and that they Carat USA. In the past, few advertisers of broadcast media at Horizon Media, New plans to have scores working at all three can work together. But despite optimism attended NATPE, and fewer still were the York. To Mr. Cohen, that makes NATPE’s SNTA conferences. He calls that in-depth spurred by this year’s NATPE, Mr. Feldman media planners who could afford the time seminar-packed, educational approach less access a “major advantage” for implementing knows the “old days haven’t returned, and the away from the office, says Mr. Donchin, who critical. But the opportunity to meet and learn advertisers’ media plans. old days are not going to return.” I March 8, 2004 | Advertising Age |S-8 AdAgeSPECIALREPORT SYNDICATION

VOICES FROM THE PAST: Classmates.com is helping school pals connect years later, but the syndicated TV version from Twentieth Television has yet to make the jump to national distribution. EBay, Classmates try TV crossover

So what’s going on? In eBay’s case, the delay stories and resonate well with all of us,” Can hot Web formats find is apparently related to the complexity of the counters Derek Streat, VP-partner sales at program. Sony has hyped “eBay-TV” as a Classmates.com. “We’re in a very good happiness on syndicated “whole new genre of television programming,” position to consolidate those stories both and TV stations that bought the show would online and offline.” One sign that he may be TV? Tune in tomorrow have gotten an e-commerce engine enabling right: Classmates.com has received more than them to conduct their own auctions. But 30,000 submissions from people hoping for a By DEBRA AHO WILLIAMSON problems with the software have contributed to reunion with someone on the TV show. the delay, industry observers say. News Corp.’s Twentieth Television espite the seeming synergy between Additionally, Sony and eBay can’t agree on declined to comment on its plans for the show, popular Web sites and TV, efforts so the show’s format, industry observers say. After which has been airing on Fox stations as part of far to create syndicated content shooting a pilot with Molly Pesce (formerly of Twentieth’s regional rollout strategy for Dbranded with well-known online “The Daily Show”) , Sony brought in sports syndicated programming. So far, ratings for destinations have failed to really catch fire. announcer (and “Celebrity Mole: Yucatan” “Classmates” haven’t been stellar. For the EBay and Sony Pictures Television have host) Ahmad Rashad last year as co-host and measurement period of November 2003, been working for nearly three years to launch reshot some material. The show’s pitch: a mix of MCKINZIE: Wonders about buzz factor. “Classmates” had an average household rating “eBay-TV,” a daily strip based on the popular news features and personality stories, with some of 1.4, according to Nielsen Media Research. online auction site. The show most recently auction how-to thrown in. Even if the concepts haven’t been perfected, had been pegged for a fall 2004 launch, after there’s still a lot of interest in the marketing being postponed for a year, and Sony had even COMPATIBILITY DILEMMA “If you’ve got a opportunities that could arise from TV shows been advertising the show’s impending debut. There’s also the question of whether eBay, based on Web sites. It’s easy for ad executives to But now that launch date is looking shaky. with its fast-paced, real-time auction great property imagine a one-two punch combining the reach An eBay spokesman says the contract with environment, even fits with syndication, of TV and the targeting accuracy of the Internet. Sony has expired, “but we are continuing to where shows are often produced in advance online, there’s explore ways we can work together.” Sony, and air at different times in each TV market. MEMORABILIA LINK meanwhile, had little to say about “eBay-TV” The show must have an interactive potential [for TV]” “If you’ve got a great property online, there’s at January’s National Association of Television component to work, says Ralph Toddre, a great boiling pot of ideas that could Programming Executives conference, choosing president-chief operating officer of Sunbelt working with them to find a program and a potentially be launched into television instead to promote other syndicated fare such Communications, owner of KRNV in Reno, concept that we both feel will work,” the eBay products,” says Ms. McKinzie. “EBay-TV” as “Pat Croce: Moving In.” Nev., where eBay and Sony earlier tested spokesman says. At Sony, a spokeswoman could feature classic Kellogg Co. or Coca-Cola Another online property, Classmates.com, some concepts. Viewers could visit the states: “We are continuing to work with eBay Co. memorabilia, she says, with a link to a live launched “Classmates” on Fox owned-and- station’s Web site and bid on items. to develop a show.” auction on the eBay Web site. operated stations in 25 markets last July. But “It was incredibly successful,” Mr. Toddre If eBay’s challenge is to create a new genre “Classmates” has already mined that syndicator Twentieth Television hasn’t yet says. “I was impressed with the whole of syndicated show, the problem with territory. Hotel chain Best Western decided whether the show, which reunites concept—if they pull it off correctly.” “Classmates” may be that it’s not original International sponsored its initial episodes, long-lost loves and old friends, has the legs to The more “eBay-TV” gets delayed, the enough. The show’s format is a common and Best Western properties were used as go national. less interesting it is to some media buyers. theme on TV talk shows—maybe too much filming locations. Best Western also At first blush, translating popular Web “The question that lingers in the back of my so to sustain a five-day-a-week program. advertised on the Classmates.com Web site. sites to TV would seem easy. EBay boasts head is ‘Is [the] eBay [Web site] past its prime “The reunion idea is not new,” says David “As personal video recorders take over, nearly 95 million registered members who from a buzz perspective?’ ” says Terri Campanelli, senior buyer with Horizon there’s going to be an increasing amount of conducted 971 million auctions last year. McKinzie, assistant media director with Media, New York. “To have that be the theme pressure on traditional advertising,” says Bill Classmates.com counts 38 million members Publicis Groupe’s Starcom USA, Chicago. every single day of the week 52 weeks a year Jacoby, Best Western’s director-consumer and is one of the most widely recognized Neither eBay nor Sony would comment seems redundant to me.” marketing. “If you can get your product as an brands on the Internet. on the show’s difficulties. “We’re still “These kinds of stories are human interest integral part of the show, that helps.” I March 8, 2004 | Advertising Age |S-9

Notgrandma’ssyndication: TV fare adds sophistication Wider range of viewers adds variety as Pauley, ‘Home Delivery’ debut By KATE FITZGERALD

n the laboratories where syndicated TV programs are being concocted for next fall, last year’s lessons are being applied more Icarefully than ever. Rule No. 1: No talk show can succeed if a host’s fame exceeds their interviewing skills. Rule No. 2: Give women what they want. That means we’ll see more shows like “Dr. Phil,” which since its 2003 debut has become the most successful new made-for-syndication program in several years, according to media and TV programming executives. Although “Dr. Phil” has a strong following among men as well, women remain the primary viewers of daytime TV, and programmers are doing a better job of getting MORE MEANINGFUL: Clockwise from l., “Starting Over,” Jane inside their heads, say media buyers. Pauley and “Ambush Makeover” extend syndication’s reach. “Syndicators are getting smart and realizing that thanks to time-shifting and goal now is to target programming to specific year-old women, says Linda Finnell, senior USA, Chicago. “Ellen is a veteran entertainer, TiVo, there are more diverse groups of chunks of female viewers, and bring back VP-programming at General Electric Co.’s a professional who does stand-up comedy women watching ‘daytime’ TV, and viewers who defected to cable in search of NBC Enterprises. “Starting Over” follows a within the show, with a sense of the quirky [syndicators are] coming up with better- better entertainment,” he says. group of women living together and trying to and the unexpected.” quality, more targeted programming,” says The reality TV genre, such a hit on make a new start in their lives; the show has With “Ellen,” Telepictures set out to Neil Faber, president-CEO of NexGen Media network and cable, is making its way into been renewed for a second season. develop a talk show for smart, upscale women Worldwide, New York. syndication with News Corp.-owned Despite the success of reality and who were tired of lowest-common- Twentieth Television’s “Ambush makeover programs in reaching women on denominator programming. BETTER ENTERTAINMENT Makeover,” to be syndicated nationally network TV, media insiders say syndicators “We wanted to recapture women viewers Syndicators are starting to mirror broadcast starting this fall. “Ambush Makeover” was would be wise to avoid overexploiting the who had left syndicated daytime TV for cable network and cable TV strategies with their first “incubated” into a successful series on category. and satellite by giving them something new programming, says Bill Carroll, VP- News Corp.’s Fox station group. “There’s a huge failure rate for reality smarter,” says Michael Teicher, exec VP- director of programming for Katz Television Another reality-inspired syndication shows, which are cheap to produce, and a great media sales at Time Warner’s Warner Bros. Group. success is “Starting Over.” The show is danger that syndicators will bulk up on these “With fewer time periods available, the garnering strong ratings among 18-to-24- types of shows,” says Brad Adgate, senior VP- director of audience analysis at Horizon “We wanted to [win TOP 10 SYNDICATED TOP 10 SYNDICATED Media, New York. SHOWS FOR WOMEN SHOWS FOR MEN Veteran broadcast network personalities back] women by are also bringing their aura to women- Game and talk shows lead the way. Sports fare scores with men. targeted syndicated programming. NBC giving them TOTAL FEMALE TOTAL MALE Enterprises’ “The Jane Pauley Show” makes VIEWERS AGED 18+ VIEWERS AGED 18+ PROGRAM (IN MILLIONS) PROGRAM (IN MILLIONS) its debut this fall with the well-known something smarter” Wheel of Fortune 8.31 ESPN NFL Regular Season 6.78 network TV journalist as host. At Telepictures Productions, “The Ellen Domestic Television Distribution, which The Oprah Winfrey Show 6.38 ESPN NFL Regular Season 2 5.08 DeGeneres Show” was a hit in its first season, handles “Ellen.” “We’re overindexing with Jeopardy! 6.26 Wheel of Fortune 5.07 media buyers agree. households of $75,000-$100,000 income, and advertisers are very excited about that.” Dr. Phil 4.82 MMN Home Team Baseball 4.83 ELLEN VS. SHARON In addition to consumer package goods, Entertainment Tonight 4.75 World Wrestling Entertainment 4.45 The success of “Ellen” contrasts sharply with automotive and computer advertisers are Everybody Loves Raymond 4.43 Jeopardy! 4.09 the demise of Telepictures’ “The Sharon coming on board for the second season of 4.33 3.99 Osbourne Show,” which started off with “Ellen,” Mr. Teicher says, but he wouldn’t list Friends Seinfeld stronger buzz than “Ellen” when the two names because deals are still pending. Judge Judy 3.99 Seinfeld (weekend) 3.56 shows launched last fall but will go off the air Ms. Pauley isn’t the only network veteran Seinfeld 3.60 Friends 2.99 in May. hoping to attract female viewers with a new “Sharon Osbourne actually overshadowed talk show. 3.57 2.90 Wheel of Fortune (weekend) Everybody Loves Raymond Ellen at the beginning, but she was a little too “The Tony Danza Show,” from Walt Notes: For period of Sept. 1, 2003-Feb. 15, 2004. See “Top 25 Shows in Ad Pricing” Notes: For period of Sept. 1, 2003-Feb. 15, 2004. See “Top 25 Shows in Ad Pricing” chart far out there, and she had a lot of obstacles to Disney Co.’s Buena Vista Television chart (Page S-4) for these programs’ syndicators. (Page S-4) for syndicators of most of these shows. ESPN syndicates “ESPN NFL Regular Season.” Cox Enterprises’ Major Market Network syndicates “MMN Home Team Baseball.” overcome in terms of being a good Advertising Sales, features the longtime TV interviewer,” says Terri McKinzie, assistant actor in a 1-hour strip expected to feature Source: Nielsen Media Research Source: Nielsen Media Research media director at Publicis Groupe’s Starcom See WOMEN on Page S-16 March 8, 2004 | Advertising Age |S-12 AdAgeSPECIALREPORT SYNDICATION Local but lauded: ‘Gimme the Mike!’ ‘If it plays in Jacksonville’... syndicators discover the value of local productions By DAISY WHITNEY

six-station tv group hopes to take advantage of the interest that “American Idol” has sparked in A amateur musical talent by bringing one of its local shows onto a larger stage in syndication. The program, titled “Gimme the Mike!,” starts a syndication run this month after SINGING ON KEY: Auditions for “Gimme the Mike!” bring out originating last year as a local talent show on all sorts of hopefuls. Placement deals can be made at the Post-Newsweek Stations’ WJXT, an local level. independent station in Jacksonville, Fla. General Electric Co.’s NBC Enterprises is now licensing the format to other local stations Enterprises because the station group lacked across the country. the resources to roll out the format nationally Post-Newsweek, owned by The on its own. Sean O’Boyle, senior VP-national Washington Post Co., should be hoping for as syndication sales manager for NBC much success as another big-name media Enterprises, says his company wasn’t company that moved one of its local shows specifically looking for such a show, but always into syndication. News Corp.’s Twentieth has its antennas up for good local content, Television has syndicated “Good Day Live” to especially given the success of the old “P.M. 180 markets reaching 94% of the country as Magazine” that originated on the former the show heads into its second season. In the Group W-owned stations, now part of Viacom. case of “Good Day Live,” the morning show “If you are independent, you need to itself—rather than just its format—took the partner with someone or gear up and hire and plunge into syndication. The show originated form a [distribution] company,” he says. in Los Angeles two years ago as a local With “Gimme the Mike!,” “We don’t experiment by the Fox station group. ever plan on duplicating the success of While many of the most successful ‘American Idol,’ ” Mr. O’Boyle says, “but syndicated shows—including “The Oprah clearly there is a tremendous appetite in local Winfrey Show” and “Cops”—originated on markets for this type of entertainment.” local stations, these recent efforts could foster Post-Newsweek isn’t waiting until the a new wave of local-to-syndie activity. impossible given that most locally produced results are in from “Gimme the Mike!” to content is news-related, Mr. Dauphinee says. start planning more moves into syndication. UNUSUAL OPPORTUNITY “GM took a liking to Many of the stations will use their local The station group is developing additional The “Gimme the Mike!” format offers local spots as a springboard for product placement. local-format shows that could be rolled out to advertisers and TV stations several this show instantly That gives local and regional advertisers a other markets, Mr. Dauphinee says. Post- advantages over other syndicated alternatives. chance to cut through the clutter and create a Newsweek wouldn’t go into specifics. The series of talent competitions culminating because of its buzz in their local markets, says John Mr. Frank, Post-Newsweek’s president, in one winner resembles a local version of Garwood, VP-sales and marketing for Post- expects local stations in general to produce Fox’s blockbuster “American Idol.” Also like grassroots nature” Newsweek. much more non-news local content—shows “Idol,” advertisers will be offered integrated For instance Post-Newsweek’s WDIV, an that would have the potential to jump into product placement, an unusual opportunity in Mike!” is that it’s a change from traditional NBC affiliate in Detroit, struck a deal with syndication. He cites court shows and comedy local TV programs. All the Post-Newsweek syndicated fare of sitcom reruns and talk Doctor’s Associates’ Subway Restaurants shows as possible formats for local stations. stations that have run “Gimme the Mike!” shows, says Maribeth Papuga, senior VP- locally to sponsor the green room on the A morning news and talk format was the have put together placement deals with local director of local broadcast at Publicis Groupe’s show. While contestants get ready to sing, winning formula for Fox’s “Good Day Live.” advertisers. MediaVest USA, New York. “[Advertisers] they’ll be eating Subway sandwiches, Mr. The expansion of the Los Angeles-based show As of mid-February, 30 stations had signed are looking at individual and unique Garwood says. is a result of the Fox station group’s efforts to on for “Gimme the Mike!” At least five programming, and people are looking for the develop local content for syndication, says stations will launch the limited six-week run opportunity to align themselves with new ON WITH OZARKA Bob Cook, president-CEO of Twentieth series in March, with the majority of other things,” she says. In Houston, Post-Newsweek’s KPRC, Television, especially given the success of stations to start in June or July. Alan Frank, president of Post-Newsweek, another NBC affiliate, has formed a “Cops,” which was born on Fox-owned The stations include heavyweights from “picked up the phone and called some of his partnership with Ozarka Natural Spring KTTV, Los Angeles, and “Current Affair,” the Cox, Belo, Viacom, Capitol Broadcasting, friends at General Motors and did the deal Water in which the bottles are positioned on hatched on Fox’s WNYW, New York. Meredith and NBC station groups. Among himself with ... key people at General Motors,” the judges’ table, an imitation of the Coca- “Good Day Live” followed a similar model them are NBC-owned & operated WNBC, says Jim Dauphinee, executive producer for Cola products adorning “American Idol.” of quiet incubation at the station group before New York; Fox affiliate KTVU, San Francisco; “Gimme the Mike!” at Post-Newsweek. KPRC is also finalizing a deal with a local it went into broader distribution. and ABC affiliate WSB, Atlanta. Post- “General Motors took a liking to this show furniture company, since furniture is an “The whole idea of rolling these out, sort Newsweek and NBC Enterprises retain two instantly because of the grassroots nature of important local ad category for broadcasters. of staying off of the national radar and putting 30-second spots during the first five weeks of this. They love the fact that it’s a homegrown The furniture company would donate a chair, them into a local market incubation, whether each run and four spots in the hourlong finale. show that exists to partner with.” like a La-Z-Boy, and viewers could register to it’s one market or 25 markets, gives us the Those all go to General Motors Corp., the “Gimme the Mike!” also enables local win that “Best Seat in the House,” Mr. ability to look at different competitive national sponsor. advertisers to build in product placement and Garwood says. environments, different strengths, lead-ins The upside for a show like “Gimme the sponsorship, which have largely been Post-Newsweek paired with NBC and lead-outs,” Mr. Cook says. I March 8, 2004 | Advertising Age |S-17

TOP 25 SHOWS IN RATINGS Overview Game shows top syndie list, with “Oprah,” From Page S-4 “Seinfeld” and “Friends” in hot pursuit. well will soon run dry. There are no breakout RANK PROGRAM HOUSEHOLD RATING hits among first-run shows. “Ellen” is 1 Wheel of Fortune 9.1 considered a hit by syndicators, but it just last week hit a 3.0 household rating from Nielsen 2 Jeopardy! 7.2 Media Research. 3 ESPN NFL Regular Season 7.0 The best-performing syndicated programs 4 The Oprah Winfrey Show 6.8 are sitcom reruns. Fox-owned stations recent- ly picked up a third cycle of “Seinfeld” and 5 Seinfeld 6.1 King World’s “Everybody Loves Raymond” Friends 6.1 for record prices, according to TV executives. 5.7 “Syndication is becoming a second-run 7 MMN Home Team Baseball business,” says Bill McOwen, exec VP-director Entertainment Tonight 5.7 of national broadcast at Havas’ MPG USA. Everybody Loves Raymond 5.7 “First-run business, the dramas, sitcoms, you 5.5 RAZOR BURN? Personalities from “The Other Half” sample women’s shaving products on-air. just don’t see them anymore. It’s all about low 10 Seinfeld (weekend) production dollars, the judge shows ... and talk 11 World Wrestling Entertainment 5.3 shows. Off-nets are tapping into a broader 12 Dr. Phil 5.2 to Home Depot last year, the Lowe’s logo was you’re an established network, you don’t clientele much more effectively.” replaced by the Home Depot logo when it have to bend as much.” But there are no other off-net hits on the 13 ESPN Regular Season 2 5.1 appeared on-screen in older reruns. While It may seem like cable networks have been horizon either. 14 Judge Judy 5.0 “Trading Spaces” isn’t a syndicated program, pretty flexible; it’s hard to find one that hasn’t 15 Wheel of Fortune (weekend) 4.1 it shows just what options are possible if engaged in some form of non-traditional ‘CSI’ ARRIVES contracts allow. advertising. But consider one of the shows Observers will be closely watching the 16 Live With Regis & Kelly 3.8 It’s not just the technology implications that Mr. Casey has worked on—“The Other performance of several off-net newcomers this 17 That ’70s Show 3.7 that have to be considered when what an actor Half,” which ran in syndication from 2000- season: King World’s “CSI: Crime Scene 3.6 is holding, for example, suddenly changes 03. Investigation,” and Twentieth Television’s 18 Inside Edition from a can of Coke to Pepsi. “If a commercial Produced by Dick Clark Productions and “Malcolm in the Middle” and “Yes, Dear.” Entertainment Tonight 3.6 tie-up is approved [by an actor] and later a General Electric Co.’s NBC Enterprises, it Reality shows rather than sitcoms—the Will & Grace 3.6 different commercial tie-up supplants the first featured four guys talking about women’s bread and butter of off-network TV—are one, the talent rep would say that’s a whole issues and included segments featuring filling net schedules, which have been hit hard 21 Warner Bros. Vol. 31 (movies) 3.5 new deal,” says Ken Hertz, a senior partner in products and services from such advertisers by disappearing young viewers. Reality shows Who Wants to Be a Millionaire 3.5 the Beverly Hills, Calif., law firm of Goldring as H&R Block, BriteSmile teeth-whitening may not have a second life in syndication. Judge Joe Brown 3.5 Hertz & Lichtenstein, which represents such products and Hyundai Motor America. In the General Electric Co.’s NBC Enterprises, talent as Beyoncé Knowles. lower half of the screen, “The Other Half” which is not currently a member of SNTA but 24 Buena Vista III (movies) 3.4 It’s much easier to do deeper integration also ran a graphic that referred viewers to the is expected to join this year, is putting “Fear 25 List of a Lifetime 5 (movies) 3.3 deals on reality shows that will probably never advertisers’ Web sites and 800-numbers. Factor” out into syndication despite fears that Notes: For period of Sept. 1, 2003-Feb. 15, 2004. See “Top 25 Shows in Ad Pricing” on go to other distribution windows, OMD’s reality programming won’t stand up. Page S-4 for syndicators of most of these shows. ESPN syndicates Nos. 3 and 13; Cox PLACEMENT WITH A TWIST Enterprises’ Major Market Network, No. 7; Buena Vista, “Who Wants to be a Mr. McCarter says. “The Restaurant” aside, “I think anything can go into syndication,” Millionaire” and “Buena Vista III”; Paramount, “Judge Joe Brown”; Vivendi Universal reality fare tends to be licensed out as format Another of WorldLink’s first-run series says Mr. Burg, “if they can get enough stuff Entertainment’s Universal Domestic Television, “List of a Lifetime 5.” rights, so that producers create their own involved Ryland Homes as a sponsor, and the content doesn’t become dated.” Source: Nielsen Media Research versions of the program rather than integrating product placement in a slightly That, however, is the crux of the issue. lead of networks and is doing slow rollouts of rerunning original shows. different way. Reality shows per se aren’t the problem, Ms. new shows at different times of the season, That’s not to say OMD isn’t getting “An independent producer [John McKinzie says. It is the episodic nature of ignoring the traditional fall premiere month. involved with integrated product deals on Mansfield of Mansfield Television most of them that won’t play in reruns. These slow launches are happening within scripted fare more suitable to syndication. One Distribution Co.] came to us with Ryland “Episodic programs just don’t translate station groups—such as in Fox affiliates— example is Sci Fi Channel’s “5 Days to Homes,” recalls Mr. Casey. “The idea was to well to syndication,” she says. “That’s why which means in many cases the shows only highlight the fastest-growing cities in the ‘NYPD Blue’ can’t make it in repeats.” appear in about 30% of the country. After country and why they were growing so fast.” According to Ms. McKinzie, “Fear Factor” they test the waters with these limited- “There are all sorts Ryland had a traditional sponsorship in could work because each installment is self- distribution runs, the programs that survive “America’s Moving to …” but Mr. Casey contained, but when the show follows a story are brought to NATPE and offered to other of issues involving says when the series spotlighted markets line every week, it doesn’t work in repeats. station groups for a full rollout in 85% of the where Ryland was active, the company VP Mr. Burg doesn’t agree: “Dramas are markets. Twentieth Television’s “Texas trademarks overseeing the region was interviewed, and doing really well in syndication. You have Justice” and “Good Day Live” were launched the production team also tried to shoot visuals ‘The West Wing’ and ‘ER,’ and people are this way on local Fox stations. and logos” with a Ryland construction project in the watching them.” background. Faced with ratings and revenue challenges GET A TRACK RECORD Midnight,” expected to debut in June with a Even in first-run, non-traditional this season, syndication is starting to follow the “This way the shows get a track record, dozen products integrated into the miniseries. advertising can be “tricky,” Mr. Gurin notes they’ve got a proven product and they avoid a Participating marketers include Nissan North as he ponders the potential for product SYNDIE ON UPSWING lot of the start-up costs entailed in a full-scale America, McDonald’s Corp., Visa USA, FedEx placement in his revival of “Real People.” launch,” says Starcom’s Ms. McKinzie, whose Corp. and Clorox Co. While Mr. McCarter Tribune Entertainment Co. will offer the While syndication is the smallest piece of the agency will hold its annual Syndication & says agreements with the advertisers take a show for fall 2005. broadcast TV ad universe, it outperformed Cable Summit May 2-3 in Chicago. possible syndication window into account, he “When you’re dealing market by market, network and local in 2003. Broadcast TV It also appears that there is some new blood refrains from giving details. you don’t know what the local advertising rose 0.5% overall in the top 100 markets. out there. Warner’s “Sex & the City” will Starting from scratch by integrating will be” and how that might clash with make its ad-supported TV bow on TBS products in the original, first-run syndicated advertiser products embedded in shows, says 2003 AD REVENUE % CHANGE Superstation this year, which suggests that fare can have its benefits for advertisers, in Mr. Gurin, who’s also executive producer of (IN BILLIONS) FROM 2002 edgy programs on subscription-based cable the view of Dan Casey, exec VP-sales and both the prime-time and syndicated versions Network TV $22.8 3.2% such as Showtime or HBO may eventually marketing at WorldLink, which provides ad of “Weakest Link.” Local broadcast TV1 $16.2 -5.4% beef up syndication. “I think they’ll have a hard services to TV channels and syndicators. But possible problems with local time getting those shows in on a broadcast level Producers of first-run programming “are advertisers can be curtailed. “If ‘Real People’ Syndicated TV $3.4 15.3% without losing the story lines,” Mr. McOwen a little more flexible about putting together has any product integrated in it at all,” he 1. Includes both local and national spot activity. says. “ ’Sex & the City’ will work on cable, an ad package that has some of the bells and says, “it will be across the whole series”—not Source: Television Bureau of Advertising analysis which the FCC keeps its hands off, but even whistles of product placement,” he says. “If in single episodes. I of estimates from TNS Media Intelligence/CMR that will be edited.” I