When might a makegood be issued?

A makegood is typically issued when ratings do not meet expectations. This occurs in the broadcasting and advertising industries when an advertisement does not receive the airtime or audience reach that was originally promised to the advertiser. In such cases, to maintain good business relations and uphold the integrity of advertising contracts, media companies often provide additional advertisement placements at no extra charge to compensate for the shortfall. This ensures that advertisers receive the value they were promised and helps build trust between the advertiser and the media outlet.

In contrast, issuing a makegood for a successful advertisement would be counterproductive, as it implies there is no need for compensation when expectations are met or exceeded. Similarly, when station profits exceed forecasts or when no spots are available, these scenarios do not typically trigger the need for a makegood, as they do not involve unmet advertising commitments or deficiencies in placement.