Price of a 30-Second TV Spot Slumps 4.1%

Categories: TV Advertising

Written By

October 6th, 2008

Advertising Age is reporting:

Continued audience erosion, combined with the effects of the writers strike, helped drive the average cost for a 30-second commercial in prime time down 4.1% to $130,089 during the 2007-2008 season, according to an analysis performed by independent media agency TargetCast TCM. The drop marks the second consecutive seasonal decline in pricing for 30-second TV ads and represents a noticeable widening over last season's 0.7% drop.

"The major reason average unit costs are down is because of audience erosion -- call it what you will, normal audience erosion. Because there's [media] fragmentation, fewer scripted shows and the cable networks in the summertime have ratings that shoot up because they run their good programs," said Gary Carr, senior VP-director of broadcast services at TargetCast tcm. Factor in the effects of the writers strike and issuance of "make-good" ads given after ratings guarantees fell short of what was stipulated in agreements, and "it is not surprising that broadcast pricing ebbed once again," he added. 

[...]

According to TargetCast, the average price of a 30-second ad fell the most on CBS. It dropped about 10.8%, falling to $116,729 from $130,896. At NBC, the average cost fell about 6.2% to $102,928 from $109,764. At Fox, the average cost fell 2.3% to $194,969 from $199,637. Only ABC was able to muster a price increase. According to TargetCast, the average price of a 30-second spot on the Walt Disney network rose 1.1% to $133,774 from $132,368.

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