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.