It’s rough being a dot.com at Super Bowl time.
Ponying up $2 million for each 30-second ad spot during the big game has got to hurt, but ABC-TV has added another hurdle this year: payment up front, in cash.
Most companies get 30 days after the game to pay their tab.
But this year, “there are so many new companies, and you want to make sure they’re going to be in business next week,” said a network spokeswoman.
“If it’s somebody we haven’t dealt with in the past and it’s a dot.com, then we tend to ask for a letter of credit or some other kind of guarantee.”
Mike Zapolin, CEO of the computer e-tailer Computer.com, forked over $2.7 million last October for one fourth-quarter and two pre-game spots.
“I was shocked,” he said. “At the same time, I understood why they wanted it and we’re a real company so we ponied up.”
Mike Brandenburg, who heads the fledgling stationery e-tailer Ourbeginnings.com, struck a compromise with the network.
He put the $2.5 million for his five spots into an interest-bearing escrow account.
“I understand because we don’t even have a year of operating history behind us,” he said.
“But we had to wire the money on Oct. 15, so they get our money for four months.”
Job search sites HotJobs.com and Monster.com are exceptions.
They’ll both get the traditional 30-day credit for their Super Bowl ads because they have advertised on the network before.
Ad agency executives say ABC isn’t the only media outlet cracking down on the dot.coms — media buyers, other networks and newspapers have been demanding full or partial payments up front.