Network TV’s Prime-time Spot Cost Drops 12%
Posted by iTVX Staff on March 31st, 2008
NEW YORK (AdAge.com) — The average cost for a prime-time spot on network TV in the first quarter dropped by 12%, to $125,634, according to an analysis performed by independent New York media shop TargetCast, pointing to some of the devastating effects the writers strike has had on the medium.
The shop said ABC, CBS and Fox saw the average cost of a commercial unit fall between 9% and 12%, while NBC’s average unit cost tumbled nearly 25%.
The analysis uses syndicated research and tracking data from NetCosts System, a service of Tarrytown, N.Y.-based Sqad. The service compiles confidential data from agencies and in-house buying systems to help advertisers understand the unit price relationship with each network and to measure future costs.
The first-quarter numbers show just how the writers strike has hurt network ad prices. During the fourth quarter of 2007, which included six weeks of the strike, the average network prime-time unit cost — or the out-of-pocket cost for an advertiser — rose nearly 4% to $141,376. CBS and Fox were flat, according to the analysis. ABC saw its unit cost rise 7.3%, while NBC saw its unit cost rise 3.4% from a year earlier.
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