FOR IMMEDIATE RELEASE

Cost of Network Prime Spots Dropped 4.1% Last Season

TargetCast tcm analysis finds average cost down to $130,089; Smaller audiences, writers strike cited as key causes for 2nd drop in 2 years

NEW YORK, Sept. 25, 2008 -- -- Independent media agency TargetCast tcm’s analysis shows the average cost per unit for a primetime spot on network television for last season dropped by 4.1%, to $130,089, marking the second consecutive seasonal decline in pricing for commercial spots. The drop was a sharp increase over last year’s decline, which was .7 percent.

CBS took the biggest hit, dropping 10.8 percent. NBC was down 6.2 percent. FOX and ABC were down by only 2.3, and 1.1 percent respectively.

“Prices dropped primarily in response to smaller audiences watching network television,” said Gary Carr, Senior Vice President, Director of Broadcast Services at TargetCast tcm, which directs planning and buying for clients including TIAA-CREF, Wyeth Consumer Healthcare and Pharmaceuticals, Gorton's, hotels.com, Expedia.com, Sun-Maid and others. The analysis showed prime time ratings for the four networks fell by 13 percent last season.

“There was continuing audience erosion due to the growth of cable television, with its popular off-network shows and increased original programming,” Carr noted. “Add to that the effects of the writers’ strike and more bonus units given to satisfy cost-per-thousand guarantees, it is not surprising that broadcast pricing ebbed once again.”

Carr said that in the 3rd Quarter, losses were stemmed a bit on the strength of the Summer Olympics on NBC, but prices were lower nevertheless.

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, an independent media agency founded six years ago by Steve Farella and Audrey Siegel to serve a diverse range of strong independent brands, was on last year’s Inc 500 list of fastest-growing private companies.

NetCosts, a service of Tarrytown, N.Y.-based SQAD Inc., compiles confidential data from agencies and in-house buying systems to provide a comprehensive 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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