Advertising and Marketing

TVB: Spot TV CPMs More Cost Efficient Than Network

Second-quarter 2013 SQAD estimates show average daypart for network 32% higher than spot TV 3/20/2013 09:00:34 AM Eastern

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.

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