The Price is Right and Advertising

Bob Stewart created many amazing game shows including Password, To Tell the Truth, and $10,000 Pyramid. None of those shows however are as fantastic as The Price is Right. Although he created the original version of the show, the show has been reworked by Mark Goodson and Bill Todman to become the show it is today.

The Whole Show is an Advertisement

The “games” on the show revolve around contestants being able to correctly guess the price of items which they can buy. The items could be everyday items, which everyone purchases, such as kool-aid, air freshener, or dog shampoo, or more extravagant items such as Michael Kors watches or trips to Hawaii.

Viewers of the show are constantly being advertised to. They are being shown an item along with a brief description and then they “guess” as to what the price of the item is. Think about the internal monologue which takes place.

“I think those watches are about $1,200.”

“The actual retail price? $295”

“Oh! They are only $300. Maybe I will get a Michael Kors watch for Uncle Jim’s birthday next week.”

Revenues on Revenues

Like all television shows the majority of the revenues come from the commercials shown in between segments. But, here is where The Price is Right differs. Not only does the show make money from commercial advertisements, but they also make money from the advertisers who want their product showcased on the show.

Most shows are only making money while the commercials are being shown. Some shows, however, do regular in-show product placements. Shows like Top Chef will plug Gladware or American Idol having all the judges drinking out of Coke glasses. When this is done, you know you are being advertised to. It is incredibly obvious what is going on.

The Price is Right does this however through the entirety of the show. But, since it is the whole show, you don’t get the same feeling you are being force fed advertising the way you are in the other shows.

The Winners are Free Advertisers

If showing the prizes to millions of viewers wasn’t enough the contestants, if they win, take the prizes home with them. This allows the contestant to market directly to their friends. “Hey, did you see this awesome watch/couch/car I won on The Price is Right?”

For an advertiser the ROI to display a product on The Price is Right is incredibly high. I would love to see documentation that The Price is Right gives potential advertisers showing what the ROI on advertising on the show is.