TVB: Spot TV CPMs More Cost Efficient Than Network

Second-quarter 2013 SQAD estimates show average daypart for network 32% higher than spot TV

By Lindsay Rubino -- Broadcasting & Cable, 3/20/2013 9:00:34 AM

Nonprofit trade association TVB released its analysis of Q2 2013 SQAD data on Tuesday, which revealed that local spot television has shown fewer increases in cost than network scatter.

Network scatter CPMs in the average daypart increased by 32% for A25-54 from the first quarter in 2013 to the second quarter, while spot TV CPMs increased only 10% in the same period. In the late-night daypart, the discrepancy is sharpest comparing network scatter's projected $37.19 A25-54 CPM to spot TV's $19.19.

The early morning and early news dayparts are also 47% and 11% higher, respectively, for network compared to spot TV; spot TV prime CPMs, however, are on par with network.

"Based on the analysis of the second quarter 2013 SQAD data, it is clearly incorrect to conclude that it's more efficient for an advertiser to default to a national Network Scatter approach," said Jack Poor, VP of marketing insights for the TVB. "In fact, to optimize reach and economics, it's measurably more efficient for a national or regional advertiser to take advantage of the CPM efficiencies offered by local Spot Television."

The full analysis by the TVB is available here.