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Source: Wrestling Observer Newsletter

Speaking of Smackdown, Broadcasting Cable had a list of the ten companies that spent the most money from January through last week in advertising on Smackdown as: 1) WWE Network $742,418; 2) Taco Bell $618,033; 3) Verizon $583,050; 4) The Real Cost $559,728; 4) NutriSystems $559,728; 6) Universal Pictures $536,406; 7) Domino’s $513,084; 8) Geico $443,118; 9) Burger King $396, 474; 9) Subway $396, 474. Considering USA Network would have paid about $21 million for the rights to Smackdown and the revenue from the leading advertisers was $5,348,513, it shows a big gap between the two numbers. Overall, that would under normal TV standards be considered shockingly low advertising revenue given the amount of viewers Smackdown draws.
 

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What the actual fuck? They are spending 3/4 million bucks on advertising on their own show??? I haven't watched Smackdown this year but are they not allowed to advertise the network during the actual show instead of the ad breaks? That's insane that they are the biggest advertiser for their own show. Explains the financial results... a lot of revenue but no profit.
 

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Overall, that would under normal TV standards be considered shockingly low advertising revenue given the amount of viewers Smackdown draws.
So why isn't it normal in this case? Is it because it's wrestling? :hmm:

Either way, that's a -15,651,487 in revenue by doing the math. LOL. The fact that WWE is the top spender just adds to the hilarity. Would love to see the Raw numbers.
 

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Those are some shocking numbers to be fair. So the USA network is only making a quarter of the money they are paying to the WWE in ad-revenue. What is worse is the fact that the biggest advertiser is the WWE themselves. Such a huge gap between revenue and expense should be alarming for the network and they should be up WWE's a**, so why are they not? It just isn't a viable investment for the USA network looking at these figures, unless SD is providing revenue to the USA network in some other form. (Like other Tv shows do through overseas rights, product placement on the shows, rerun contracts and syndication rights but I don't know if any of those are applicable here)

I am also astounded at WWE making such low advertising revenue for SD despite having around 2.5 million viewers on average for the show and a pretty good Adults 18-49 demo. Perhaps the notion that the WWE fanbase is viewed as low income (coming from the WOR) by the advertisers/sponsors has some merit to it afterall. Because broadcast network shows with similar viewership patters would on an average make QUITE a bit more. (I remember reading last year that the bottom 30% of broadcast shows made around 60-80K per 20sec which roughly equated to around 4-5 million per episode) Part of it is perhaps because SD was considered a recap show for Raw all this while and advertisers would like to wait and watch to see the viewership and ratings figures over a sustained period of time (And to ensure they remain stable) before offering better terms to the network?

A look at Raw's figures would perhaps provide a better indication on if the WWE weekly programming as a product isn't considered lucrative enough for sponsors/advertisers, based on viewer demos. But one thing is for sure, unless WWE is somehow compensating the USA network with their entire gambit of offerings across the board, the network will likely ask for a major renegotiation when the contract talks are due next year, because you simply can't justify a 75% gap in revenue vis-a-vis expenditure.
 

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Those are some shocking numbers to be fair. So the USA network is only making a quarter of the money they are paying to the WWE in ad-revenue. What is worse is the fact that the biggest advertiser is the WWE themselves. Such a huge gap between revenue and expense should be alarming for the network and they should be up WWE's a**, so why are they not? It just isn't a viable investment for the USA network looking at these figures, unless SD is providing revenue to the USA network in some other form. (Like other Tv shows do through overseas rights, product placement on the shows, rerun contracts and syndication rights but I don't know if any of those are applicable here)

I am also astounded at WWE (the show) making such low advertising revenue for SD despite having around 2.5 million viewers on average for the show and a pretty good Adults 18-49 demo. Perhaps the notion that the WWE fanbase is viewed as low income (coming from the WOR) by the advertisers/sponsors has some merit to it though. Because broadcast network shows with similar viewership patters would on an average make QUITE a bit more. (I remember reading last year that the bottom 30% of broadcast shows made around 60-80K per 20s which roughly equated to around 4-5 million per episode) Part of it is perhaps because SD was considered a recap show for Raw all this while and advertisers would like to wait and watch to see if the viewership and ratings figures over a sustained period of time (And to ensure they remain stable) before offering better terms to the network?

A look at Raw's figures would perhaps provide a better indication on if the WWE weekly programming as a product isn't considered lucrative enough for sponsors/advertisers, based on viewer demos. But one thing is for sure, unless WWE is somehow compensating the USA network with their entire gambit of offerings across the board, the network will likely ask for a major renegotiation when the contract talks are due next year, because you simply can't justify a 75% gap in revenue vis-a-vis expenditure.
The WWE isn't mainstream relevant and has never been more unpopular.
 

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$560,000 dollars for the anti-smoking ads...
 
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