Cost of Network Prime Spots Drop 15% in 4th Qtr

TargetCast tcm analysis shows impact of ratings decline and recession as average unit cost for all networks fell to $122,133

NEW YORK, February 3, 2009 – Independent media agency TargetCast tcm uncovered that the average cost per unit for a primetime spot on network television in the fourth quarter dropped 15%, to $122,133. CBS led the slide with a 22% drop, followed by NBC and ABC, with a 13% and 10% decline respectively. FOX saw its unit price drop by 6%.

Senior Vice President, Director of Broadcast Services at TargetCast tcm, Gary Carr said the cause of the drop was two-fold. "The continuing decline in ratings – an overall drop of 13% across all the networks from a year ago – coupled with a declining broadcast economy is a recipe for lower prices".

As the scatter market began, the economy was plummeting. "The networks were forced to drop their prices to get what little scatter money was available from advertisers," said Carr. Ratings for adults 25 – 54 were down by 20% versus a year ago at ABC and 16% at NBC. FOX's ratings were down 9% and CBS was down 4%.

Although CBS had the smallest drop in ratings, their unit price fell the most because they had a lot of available inventory. Since their ratings were fairly flat they did not have to use the inventory for make-goods. With so few dollars out there, Carr said, they were forced to drop prices.

The TargetCast tcm analysis, using syndicated research and tracking data from the NetCosts™ 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 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, Expedia.com, Sun-Maid Raisins, 1-800-flowers.com, and Sidney Frank Importing. The agency is on the Inc 500 list of fastest-growing private companies.

NetCosts™, a service of Tarrytown, NY-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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