cash makegoods – new pain of giving back

In the heavily discounted world of powersports print advertising make goods for shortfalls are still the norm, but it’s somewhat of a surprise that over in the grown up playground of broadcast that NBC is opting for a cash back plan to the tune of $10-mil over ratings shortfalls.

According to Ad Age, NBC took in $6-billion in 2006, so what’s relevant isn’t the amount of the settlement but why. In this case, make-goods were delayed anticipating a big ratings hit that never occured, and the bigger implications for a move from program ratings to an actual ads viewed basis for compensation.

We mention this because of the predicament facing traditional print publications in an era of declining readership and advertiser defections. Audited circulation notwithstanding, knowing how, where and when to invest in print is becoming more and more difficult for the small industry model that’s the backbone of the aftermarket powersports market.