How Glenn Beck Cost Fox News More Than $40 million | Media Matters for America

It’s always about money…

And Glenn Beck wasn’t pulling in the advertising dollars because companies weren’t willing to advertise on his show…

This was due to the boycott caused by his lunatic performances…

How much has the advertising exodus cost Fox News? In September 2009, ColorForChange, which was instrumental in launching the Beck ad boycott, published its analysis. Based on advertising rates it concluded that Glenn Beck was bringing in approximately $600,000 less per-week (or approximately $2.4 million per-month), than it was before the boycott began. Keep in mind, that’s when 50 or 60 advertisers had jumped ship. Today, that number hovers between 300-400.

Using that $2.4 million per month estimate, since the fall of 2009, it’s possible the ad-starved Beck show booked nearly $43 million less than it would have if it weren’t facing a boycott. $43 million.

It’s true that throughout the boycott, the official word from Fox News has been that the advertising exodus wasn’t a big deal and that they were just moving advertisers around to other programs and that everything was just fine on the sales side atGlenn Beck. All of which made no sense.

The television industry is built around supply and demand. Glenn Beck has supply in the form of roughly 20 minutes of advertising time sold each episode. And it wants to build demand. Usually, healthy ratings drive that demand since advertisers want to reach the masses. But if suddenly hundreds of advertisers raise their hand and announce they’d be happy to spend money with Fox News, but not on Glenn Beck, then the show’s demand plummets, but the supply –the 20 minutes of advertising inventory—remains the same.

Bottom line? The ad rates go down, even if Glenn Beck remains the third highest rated show in cable news.

via Ratings, Revenues And A Painful Lesson: How Glenn Beck Cost Fox News More Than $40 million | Media Matters for America.

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Filed under Journalism, Politics, The Economy

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