FCC To Explore Impact of Internet Ad Sales on Lowest Unit Rate
The FCC today issued a Public Notice soliciting comments on the impact of Internet ad sales on the lowest unit rate prescribed by the FCC's Political Advertising Rules. The Commission's inquiry picks up on an issue we raised in a blog entry last year and responds to a recent Request for Declaratory Ruling filed by a group of state broadcasters associations seeking guidance on the effect that ad sales made via the Internet could have on the rates charged to political candidates. With the advent of Internet sites, such as Google’s dMarc service, that take remnant advertising inventory from broadcasters and market that inventory on-line, it is possible that a station could sell left-over spot time at prices less than a local advertiser would pay for similar time on the same radio station. The informal guidance given previously by the FCC's staff has been that if a commercial advertiser can buy a particular spot on a particular station using an on-line service, and that spot carries with it the same rights that a spot purchased directly from the station has (e.g. it runs in the same time period, has the same protections against pre-emption, it carries similar make-good rights), then the spot must be considered in the station’s lowest unit rate analysis for spots of the same class.
With a formal request for clarification now before it, the FCC seeks input to assist it in resolving the issue of whether such ad time sold via these Internet sales must be taken into consideration when determining the station's lowest unit rate for purposes of the political advertising rules. Among other things, the Commission seeks information regarding the design and operation of these Internet ad sales services. A copy of the Commission's Public Notice can be found here. The proceeding has been assigned Docket MB No. 07-137. Comments are due by August 6, 2007, and Reply Comments are due by August 21, 2007, and can be filed with the Commission either electronically via ECFS, or on paper.
With a formal request for clarification now before it, the FCC seeks input to assist it in resolving the issue of whether such ad time sold via these Internet sales must be taken into consideration when determining the station's lowest unit rate for purposes of the political advertising rules. Among other things, the Commission seeks information regarding the design and operation of these Internet ad sales services. A copy of the Commission's Public Notice can be found here. The proceeding has been assigned Docket MB No. 07-137. Comments are due by August 6, 2007, and Reply Comments are due by August 21, 2007, and can be filed with the Commission either electronically via ECFS, or on paper.
