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INTERNATIONAL NEWS:
The word is that the deal making soared to a record level of US$9.2 billion, an increase of nearly 14 percent on last year, itself a record at US$8.1bn. The ABC president of advertising sales and marketing, Mike Shaw, said, "We are very pleased that advertisers are voting with their pocketbooks. It's a strong affirmation of the network model." The large dollars changing hands is not the only sign pointing to an upsurge in advertising. The speed at which they did so - books closing in an adrenalin charged thirty six hours - is more reminiscent of the goldrush 90s, said participants. The sellers were seeking CPM (cost-per-thousand viewers) hikes upward of 20%; the buyers had in mind around half that figure. The two sides shook hands on deals ranging between 16% and 20%. The main cable systems, however, didn't have it quite that good, so far only disposing of between 20 to 30 percent of inventory. Price rises of between 5%-9% have been suggested as being likely. Perhaps most significant, though, is the bellyflop of predictions - mainly propagated by media buyers - that their ad dollars would be diverted to cable because of high broadcast network prices. Wise after the event, one media commentator commented: "Given the size of the market at $9.2 billion, I don't think [a significant shift in] money moved to cable." Data sourced from: AdAge.com; additional content by WARC staff
It seems the war is well and truly over, certainly as far as advertisers in the US are concerned. With the sole exception of cable news channels, ad spending reverted to normal levels during week two of the war on Iraq, reported the CMR unit of Taylor Nelson Sofres. TV expenditure for that week rose by $71.2 million (€66.23m; £45.38m) year-on-year, reveals CMR's preliminary estimate. This compared with week one of the war when media companies lost $77m as marketers pulled or postponed their ads. Cable went backwards during their period, however. Cable news channels witnessed a decline in ad revenues of 44% during week two compared with all other TV sectors which registered income gains. Weeks one and two in aggregate saw the cable news networks down 56% year-on-year; Spanish-language TV was down 7% and networks dropped 4%. Non-news cable operators, however, prospered, ten percent up on the same period last year. Spot TV rose by 3%. Data sourced from: AdAge.com; additional content by WARC staff
A TV Trends Report was recently released in the UK by its Institute of Practitioners in Advertising, covering the year's first quarter. Key points:
In comparing the latest data with Q1 2002, cautions the IPA, it must be remembered that the latter coincided with the launch of the new BARB (Broadcasters' Audience Research Board) panel, when the viewing levels recorded may have been artificially low. Data sourced from: IPA Online (UK); additional content by WARC staff For
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