Analysis: Strike Hurt NBC Most


The average unit cost for a prime-time ad spot on NBC during the first quarter was $77,893, down 24.7 percent from first quarter ad unit price for the first quarter of 2007.


John Consoli

MARCH 31, 2008 -

The Writers Guild of America strike had the biggest impact on prime-time television ad prices charged by NBC, particularly in first quarter of this year, according to an analysis by media agency TargetCast tcm.

The average unit cost for a prime-time ad spot on NBC during the first quarter was $77,893, down 24.7 percent from first quarter ad unit price for the first quarter of 2007, the TargetCast analysis showed.

First quarter 2008 prime-time ad unit costs for the other Big Four broadcast networks were also down: minus 11.9 percent at CBS to $112,641; minus 9.5 percent at ABC to $122,509; and minus 9.2 percent at Fox to $237,237, despite numerous episodes of first-run American Idol.

Cumulatively, among the Big Four broadcast networks, the average first quarter ad unit was down 12 percent to an average $125,634.

All of the broadcast networks got more per prime-time ad unit in fourth quarter 2007, despite the writers strike, the TargetCast analysis showed.

Season-to-date, according to TargetCast, NBC is getting 8.7 percent less for each prime-time ad unit compared to last season, while CBS is getting 5.5 percent less, Fox is getting 4.1 percent less and ABC is virtually flat, averaging a broadcast network prime-time high rate per unit of $142, 211.

“Clearly, the writers strike caused uncertainty with viewers and advertisers, which impacted ratings and actual prices paid,” said Gary Carr, senior vp, director of broadcast services for TargetCast.

In its analysis, TargetCast used syndicated research and tracking data from the NetCosts system, examining actual reported spending for prime time on the Big Four broadcast networks. NetCosts System is a service of Tarrytown, N.Y.-based SQAD, which complied confidential data from media agencies and in-house buying systems to provide a database on national marketplace spending.


Links referenced within this article


Find this article at:
http://www.mediaweek.com/mw/news/media_agencies/article...ontent_id=1003783115

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Season-to-date, according to TargetCast, NBC is getting 8.7 percent less for each prime-time ad unit compared to last season, while CBS is getting 5.5 percent less, Fox is getting 4.1 percent less and ABC is virtually flat,

Compare this with the season-to-date TV ratings vs. last year and it doesn't seem to make any sense. FOX is up about 10% vs. last year while CBS is down about 20%. ABC and NBC are also down about 10%, aren't they?

Can anyone explain why the ad revenue is so disconnected from the ratings?

Could the ad unit rate be so different from the ratings we see because the networks/advertisers all guessed on the ad rates based upon the new 'C3' standard?

Also, this article: Adage link hints that Nielsen may be trying to help networks get out of home viewing added in to the commercial rates soon. I thought out of home viewing was already included. In any case, out of home for the NCAA tournament would boost viewership significantly.

quote:

Originally posted by Obveeus:

quote:

Season-to-date, according to TargetCast, NBC is getting 8.7 percent less for each prime-time ad unit compared to last season, while CBS is getting 5.5 percent less, Fox is getting 4.1 percent less and ABC is virtually flat,

Compare this with the season-to-date TV ratings vs. last year and it doesn't seem to make any sense. FOX is up about 10% vs. last year while CBS is down about 20%. ABC and NBC are also down about 10%, aren't they?

Can anyone explain why the ad revenue is so disconnected from the ratings?

From USA Today:

http://www.usatoday.com/life/television/news/2008-04-01...writers-strike_N.htm

But the strike compounds a tough season with no new hits. Excluding the Super Bowl from 2007 figures, CBS is down 26% since January, compared with a 5% loss last fall, while ABC's decline swelled from 3% to 12%. NBC is down 5%, and Fox is up 1%, poised to win its first season among all viewers.

Just to add to the numbers being tossed out, this Adage article offers up the following:

quote:

Prime-time ratings for viewers between the ages of 18 and 49, excluding sports, have dipped 16% this TV season through March 16, according to research from Sanford C. Bernstein analyst Michael Nathanson. Fox's ratings in that category are down 5.7%, while ABC's have tumbled 17.6%, NBC's 17.2% and CBS's 24.2%.