L’Oreal, Other Sponsors Leave the 2009 Oscars Stranded

It’s been years that the Academy Awards have lost their appeal with the public, at least in terms of the ABC telecast, which has recorded lower and lower ratings with each edition. However, 2009 may hold yet other unpleasant surprises for the network, with reports swirling that several sponsors, among which cosmetic giant L’Oreal, are leaving – and taking their money with them.

Granted, it is being said, losing one sponsor is not that big a deal, but with L’Oreal ABC is losing one of the major contributors to the yearly telecast, one that would have brought a little over $20 million at this year’s edition. In announcing that it will not be connected with the Academy Awards with just a week before they actually take place, L’Oreal is not only putting the network in a difficult position, but it’s also leaving the Oscars without a beauty brand, it has been said.

“Besides losing a backer with deep pockets – since 2004, L’Oreal’s Academy Awards spend has added up to a cool $40.9 million, per TNS Media Intelligence – ABC is heading into the week with a significant chunk of unsold inventory. Last year, L’Oreal bought 180 seconds of air time, according to Nielsen Monitor-Plus, the second-largest investment behind General Motors (210 seconds). At an average cost of $1.7 million, the two clients combined to invest $22.1 million in last year’s Oscars.” MediaWeek informs, adding that GM announced it would not back the awards as early as October 2008.

What’s even worse, the same publication says, is that ABC is hardly in any position to find suitable replacements for the sponsors that have dropped out of the gala this year. With audiences for the telecast also dropping fast and with so little to go until the grand night, the network is not at all in an enviable position, it is being argued.

“Some buyers believe that the show may have aged beyond the reach of the category. ‘A lot of cosmetics companies reach out to younger women, and those viewers are leaving in droves,’ said Shari Anne Brill, senior VP, director, Carat.” MediaWeek further explains. Until now, neither ABC nor L’Oreal wanted to comment on the situation but, either way, it has become clear that the recession is also taking its toll on the 2009 Oscars, the same publication concludes.