No surprise that broadcast ad prices are falling at about the same rate as the decline in broadcast primetime demo ratings.
Although fourth-quarter activity may ultimately change TV’s advertising picture, broadcast network TV commercial pricing dropped steeply during the summer: 16% versus the same period a year ago.
The average price for a 30-second broadcast TV commercial dropped to $83,916, according to recent analysis by New York media agency TargetCast tcm. The agency says the decline was at a faster pace than in recent quarters, where pricing was down but in the single-digit percent range.
Fox posted the highest average unit cost of $121,000 for a 30-second commercial. ABC, NBC, and CBS were all in the $70,000 to $80,000 range for a commercial unit.
Likewise, cable rates are up by about the same rate as overall ad supported cable ratings. It’s not rocket science, folks.
While broadcast networks were hurting, cable channels made gains in 3Q. The top 15 cable networks’ ratings were up nearly 5% among adult 25-54 viewers — which pushed up pricing around the same levels to an average $10,000 for a 30-second commercial.
The highest priced networks: ESPN averaged $27,000 for a 30-second commercial, TNT was at $17,000.
via MediaPost.
The power shift continues apace. And the cause–development. Cable does it right. Network does it wrong. It’s that simple.
The numbers there are like brain science.
Or was it rocket surgery.
I forget. numbers hurt my brains.
I think this hurts the idea that going after low cost shows is a good idea; that the network can afford the lower ratings because the cost of the show is less. The lower ratings leads to lower ad revenues, which reduces that profit from the cost of the show being less.
So even though Leno costs less, if NBC can’t get a good price for ads to be played during Leno, maybe the shows that cost more but also get better ratings actually do start to pull ahead in Profit.
What do you expect the network to do. Completley overhaul there business model that has worked for them for decades give them time. You know if we didn’t have so many channels we wouldn’t be left with crap on TV. All TV needs to downsize and focus on quality not quantity. Because thanks to the splintering audience quality is being sucked down the tube.