Broadcast and Cable Network Upfront CPMs Increase 8%; Scatter Up Even More

Overall broadcast network primetime costsperthousand increased an average 7 in the 20072008 Upfront season an increase that while inflationary marketers are recognizing as a bargain compared to current scatter market pricing With broadcast networks delivering audience deficiency units to compensate for ratings under delivery issues next season and with continuing under delivery issues this season dollars are flowing to cable syndication outofhome and emerging broadband video options In the 20062007 season Upfront costs declined an average one percentDue to the complexities of the marketplace conversion from program to commercial live 3day ratings it is more difficult than usual to estimate individual network CPM increases However based on limited and incomplete data we estimate the CW Network led the pack with 95 increases followed by ABC at 80 CBS and Fox at 75 and NBC which was first out of the gate making Upfront deals at 55List Your Job Openings at Jobs at JackMyerscom emPowered by mediabistrocomAll inflation estimates are based on the commercial 3day measurement and actual increases vary significantly based on individual negotiations and packages Myers39 estimates are based on a compilation of multiple network and agency informationAndy Donchin Director of National Broadcast for media agency Carat US advised Jack Myers Media Business Report quotAlthough in many cases the marketplace seemed to have commanded high CPM increases the net gains to the networks when the 39C3 gap39 is factored in resulted in only modest upfront inflation This coupled with the presently strong scatter marketplace reaffirms our commitment to the Upfront negotiation processquotHispanic networks led by Univision generated an estimated 100 increase Morning News costperthousand increases set the gold standard for the Upfront season with the three major network morning news programs generating CPM increases of 115 on average In all cases actual negotiated pricing will vary by as much as 15 to 20 percentage points based on specific budgets daypart and program packaging network composition sponsorships and special support services delivered by the networks plus other unique aspects of each agency39s and marketer39s relationship with the networks Cable entertainment networks captured increases slightly higher than broadcast primetime averaging eight to nine percent with cable news CPMs growing an estimated 75 Broadcast network evening news programs averaged 95 CPM increases for the 20072008 season Broadcast network daytime CPMs increased 80 and late night network programming increased 50 NBC captures nearly 50 of late night Upfront spending In last year39s 20062007 Upfront morning news generated 30 increases late night CPMs declined by 30 daytime increases averaged 40 and evening news 20 Cable CPMs in the 20062007 Upfront averaged 10 gains with syndication being generally flat yeartoyear In this year39s Upfront market high tier syndication generated estimated 70 increases while middle and low tier programming saw 35 gainsRead TiVoWorthy TV Everyday at JackMyerscomAlthough total broadcast network costsperthousand increased almost eight percent total primetime revenues for the five broadcast networks combined were an estimated 92 billion dollars down from an estimated 9460 billion spent during the 20052006 season The declines reflect continuing broadcast network primetime ratings erosion even though agencies and advertisers agreed to move to commercial ratings and accept live plus three days of time shifted DVR viewing 3 Overall calendar year broadcast network revenues are projected by Jack Myers Media Business Report to increase two percent to 18936 billion with cable yeartoyear spending increasing 50 to 177 billionNational Television Upfront CostPerThousand yeartoYear Changes20072008Source Jack Myers Media Business Report estimates based on industry compilation Individual agency and advertiser changes vary significantly based on multiple factors Broadcast Networks Increase amp160 Primetime 700 amp160 amp160 amp160 amp160 Morning News 1150 amp160 amp160 amp160 amp160 Daytime 800 amp160 amp160 amp160 amp160 Evening News 950 amp160 amp160 amp160 amp160 Latenight 500 amp160 amp160 amp160 amp160 Cable Networks amp160 amp160 Entertainment 850 amp160 News 750 amp160 Syndication amp160 amp160 High Tier 700 amp160 MiddleLow Tier 350 amp160 amp160 amp160 amp160 Hispanic 1000 C3 NTI amp160 amp160 amp160 Increase based on Live to C3 ratings amp160

CLICK TO DOWNLOAD THE MYERS REPORT RESEARCH & WHITEPAPERS

Broadcast and Cable Network Upfront CPMs Increase 8%; Scatter Up Even More

Author

Publish date

Channel

Jack Myers

Hispanic Leadership Roundtable: Inclusion, Mentorship, and Building the Next Generation (Video) - By Juan Ayala

More Videos:

CLICK TO DOWNLOAD THE MYERS REPORT RESEARCH & WHITEPAPERS

Broadcast and Cable Network Upfront CPMs Increase 8%; Scatter Up Even More

Enjoying This Commentary? There's More to Love

Jack Myers

Hispanic Leadership Roundtable: Inclusion, Mentorship, and Building the Next Generation (Video) - By Juan Ayala

The payment was successful

Cookies