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Mediaweek: 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

Published: 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.

Find the full article at http://www.mediaweek.com.