Cost of Network Prime Spots Drop Only 4% in 1st Qtr

TargetCast tcm analysis shows impact of stabilization of ratings and recession as average unit cost for the big four networks fell to $126,204

NEW YORK, May 20, 2009 – 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 a modest 3.7%, to $126,204…decreasing much less than in recent quarters. FOX had the highest unit cost at $253,000, while NBC had the lowest at $85,000.

Gary Carr, Senior Vice President, Director of Broadcast Services at TargetCast tcm, said average pricing decreased at this lower rate due to two factors. "First, ratings stabilized compared to last year when ratings were depressed due to the writers strike. Ratings were virtually flat vs year-ago" Second, "The upfront marketplace was fairly healthy, and although the scatter market was less than robust, the networks needed to give away 25% fewer no-charge units to satisfy audience guarantees, thus keeping unit prices from falling too much".

In fact, ratings for adults 25 - 54 were down only 1% overall versus a year ago. CBS was up 18%, and NBC was down 10%. ABC and FOX were up a bit, and down a bit respectively.

Carr said that despite the poor economy, attractive pricing may have kept a fair amount of money in the marketplace.

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 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, New York Life, Sun Maid and Sidney Frank Importing. The agency is on the 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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