Advertising Cost, What a Waste of Money!

At the risk of boring readers with another stats chart, I’ve published another (thanks to tvb.org ).

I am way too excited about this to wait.

This chart is based on the 30 second commercial spot, cost and reach for primetime TV (7p.m. to 11p.m.). The most coveted spot on TV, historically.

According to Mediaweek, viewers aged 18-49 for network syndicated spots, viewership has gone DOWN by an average of 12% and some as much as 21% over last year. That equates to about 3 million viewers on average.

But Media Agencies are still trying to use scare tactics on advertisers, boasting the fact that ad spots that are not locked in already will cost 30-40% more over last year.

How often do you watch network syndicated TV during during this time slot, I can count on one hand over the past 6 months.

I ask…DOES THIS MAKE ANY SENSE?

• Viewership is rapidly declining.
• Many viewers are skipping commercials (Tivo/DVR’s).
• Advertising dollars are drastically increasing yet return on those dollars are decreasing.

There must be a panic to get those few advertising spots during shows like American Idol where viewership is high.

With hundreds of channels, and the Internet, it begs the question what are media agencies and advertisers thinking? Are they even doing that much? Talk about NOT thinking out of the box, a box that is turning into a casket I am afraid.

Are prime time network commercials speaking to you?

Spot Television Cost and CPM Trends
Top 100 Markets/30-Second Commercial
Primetime (M-SUN)

		Households Per Rating Pt.		Cost Per HH Rating Pt.		Cost Per 1000 Homes
	1982	703,092		$6,235		$8.87
	1983	717,905		5,852		8.15
	1984	722,326		6,788		9.40
	1985	732,211		7,360		10.01
	1986	739,414		7,075		9.57
	1987	752,863		7,461		9.91
	1988	762,958		8,565		11.23
	1989	774,048		8,506		10.99
	1990	790,405		9,135		11.56
	1991	798,727		9,411		11.78
	1992	790,891		9,908		12.53
	1993	799,836		9,943		12.43
	1994	808,886		9,943		12.29
	1995	817,608		10,925		13.36
	1996	820,662		14,130		17.22
	1997	829,690		14,354		17.30
	1998	838,790		15,169		18.08
	1999	852,588		17,899		20.99
	2000	864,971		21,232		24.55
	2001	877,614		23,515		26.79
	2002	906,181		21,254		26.79
	2003	915,100		22,309		24.38
	2004	931,077		25,388		27.27
	2005	941,219		24,181		25.69
	2006	947,184		26,430		27.90
	2007	957,208		32,663		34.12
	2008	970,394		26,484		27.29

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