Cost of Network Prime Spots Drop 11% in 2nd QTR

TargetCast tcm analysis shows impact of writers' strike as average unit cost for all networks slid to $139,728

NEW YORK, June 2008 - An analysis by independent media agency TargetCast tcm shows the average cost per unit for a primetime spot on network television in the second quarter dropped by 11.1%, to $139,728. FOX, which enjoyed the highest average unit cost, at $254,852, slipped by only 2.7%, followed by ABC with a 5.1% drop. The average unit cost on NBC and CBS was down by 15.1 and 18% respectively, the analysis showed.

Although the writers' strike had ended before the second quarter, new episodes didn't begin airing until the middle of the quarter, noted Gary Carr, Senior Vice President, Director of Broadcast Services at TargetCast tcm, "And when new episodes aired," he said, "they didn't perform up to pre-strike levels. Viewers had found other options and didn't rush back to the networks."

The networks issued make-goods to give advertisers the ratings they had been guaranteed, which put more downward pressure on unit prices, Carr explained. They issued roughly 20% of their inventory, compared to make-goods of about 13% a year ago.

Ratings for adults 25—54 were down by 11% versus a year ago, although delayed viewing by DVR (C3 ratings) made the actual decline closer to 10%.

TargetCast tcm is an independent media agency founded by Steve Farella and Audrey Siegel. TargetCast tcm serves a diverse range of strong independent brands including TIAA-CREF, Wyeth Consumer Healthcare and Pharmaceuticals, Gorton's, Hotels.com, and Sun Maid. The agency is on the Inc 500 list of fastest-growing private companies.

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.

The NetCosts System, a service of Tarrytown, N.Y.-based SQAD, compiles confidential data from agencies and in-house buying systems to provide a com-prehensive database that brings transparency to the national television marketplace. It 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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