Writers' Strike Hit NBC Hardest as Cost of Prime Spots in 1st Qtr Drops 25%

TargetCast tcm analysis shows average unit cost for all networks dropped 12% to $125,634

NEW YORK, March 31, 2008 -- An analysis by independent media agency TargetCast tcm shows the average cost per unit for a primetime spot on network television in the first quarter dropped by 12 percent, to $125,634. ABC, CBS, and FOX were down 9 -12 percent, but NBC's average unit cost plummeted nearly 25 percent, bringing the four-network average percentage loss up.

"Clearly, the writers' strike caused uncertainty with viewers and advertisers, which impacted ratings and actual prices paid," said Gary Carr, Senior Vice President, Director of Broadcast Services.

In order to satisfy 1st Quarter audience guarantees, the networks held back a significant amount of inventory, which limited supply and raised CPMs. As a response, many advertisers shifted dollars out of network and into other venues, causing actual unit costs to drop.

During the 4th Quarter of 2007, which included six weeks of the strike, average network prime time unit cost of $141,376 rose by nearly 4 percent from a year ago, with CBS and FOX flat and ABC and NBC up 7.3 percent and 3.4. percent respectively. Ratings for adults 25 – 54 were down by 14 percent, with C3 ratings (viewers by DVR) adding another 1 percent to the total decrease.

The TargetCast tcm analysis, using syndicated research and tracking data from the NetCostsTM system, examined actual reported spending for primetime ads on ABC, CBS, NBC and FOX to compute an average unit cost for each network.

TargetCast tcm is an independent media agency founded five years ago by Steve Farella and Audrey Siegel. With a staff of 65, TargetCast tcm serves a diverse range of strong independent brands including TIAA-CREF, Wyeth Consumer Healthcare and Pharmaceuticals, 1-800-Flowers.com, and Hotels.com, The agency was recently named to the Inc 500 list of fastest-growing private companies.

The NetCosts System, a service of Tarrytown, N.Y.-based SQAD, compiles confidential data from agencies and in-house buying systems to provide a comprehensive database that brings transparency to the national television marketplace and enables advertisers and their agencies to understand, based on real transactions, the unit price relationship with each network and to measure future costs.

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