Commercial Prices Rose in Last Three Quarters of 2011

In 4Q, 30-second spot on broadcast cost $116,122

By Jon Lafayette -- Broadcasting & Cable, 2/7/2012 12:48:11 PM

Prices for primetime commercials on the Big Four broadcast networks rose during the second, third and fourth quarter of 2011.

Prices for ads on cable rose even faster.

According to media agency TargetCast, using data from SQAD, the price of an average 30-second spot rose 2% in the second quarter to $127,291. In the third quarter, prices rose 4% to $82,951.

Pricing growth slowed in the fourth quarter to 2%, with spots averaging $116,122, according to the data from SQAD's NetCosts service, which compiles data from agency and client buying systems.

The agency says that with the last few quarters accounted for, prices have either risen or been flat for seven straight quarters. Prior to that, with the economy in a recession and cable attracting ad dollars away from the broadcast networks, prices had been declining.

"The robust demand for television, combined with a somewhat slower rating decline, drove unit prices and CPMs higher," said Gary Carr, senior VP and executive director of national broadcast at TargetCast.

The prices the networks get for their ads reflects how well they do in attracting viewers, particularly adults 18 to 49 and adults 25 to 54.

In the second quarter, Fox, with American Idol climaxing, had the highest unit cost among the broadcasters, getting $229,130 per spot. ABC got $127,801, CBS got $115,905 and struggling NBC got just $86,454.

By comparison, the average unit cost for a cable network ranked in the top 15 among adults 25 to 54 in prime was $12,107, up15%. Fetching the highest prices were ESPN at $28,789 and TNT at $25,454.

Fox also had the highest average price in the third quarter, with spots selling for $125,758, followed by ABC at $82,946, CBS at $79,260 and NBC at $61,610.

Among the cable networks, the average cost for a primetime spot on the Top 15 networks was $11,711, up 9%. ESPN was again No. 1 at $32,207, followed by USA at $18,821.

For the fourth quarter, Fox averaged $179,514 per spot, followed by CBS at $116,517, ABC at 114,954 and NBC with $76,529.

In the fourth quarter, the cable average was up 7% to $13,748. ESPN, which airs NFL football, was tops at $59,008 per spot, followed by TBS at $19,542.