1Q Short-Form DRTV Media Billings Double in 4 Years1 Aug, 2008 By: Shay Moftakhar Response
"Computers, Software and Home Office" category gains $78 million, while Cable TV expands $158 million.
All five outlets of media distribution enjoyed gains in the first quarter. Cable TV continued its string of first-quarter triumphs with a 24-percent increase of $158 million. Hispanic Network TV led the other four outlets with nearly a $37.5 million increase (28.7 percent). Network TV's 26-percent gain of $11.3 million was just enough to maintain its market share. Spot TV's extra $13.5 million represented a 25-percent advance, while syndication reversed its 1Q 2007 loss of $2.9 million to the tune of a $22.7 million advance — an impressive 49.2-percent turnaround.
Fig. 5: First-Quarter 2008 Short-Form DRTV: Dollars Spent by Media Type
Rosetta Colored Glasses
The total number of individual short-form DRTV campaigns aired during the 1Q 2008 increased 9 percent to 1,183. The average cost of a campaign based on the total increased by almost 15.8 percent — $135,093. At the same time, the average cost of a campaign outside the top 40 spiked 27 percent, or $90,295 — mirroring the past two annual percentage increases (1Q 2007, 26.9 percent; 1Q 2006, 26.2 percent).
Fig. 6: Total Short-Form DRTV Campaigns
The top 40 campaigns accounted for 58.6-percent ($680.4 million) of the total, expanding 18.5 percent, or $107.2 million, over 1Q 2007 results. The No. 1 campaign this quarter was "Rosetta Stone Various Software" with a whopping $55.2 million spent — not bad for a campaign that didn't break into the last year's 1Q top 40.
The top 10 campaigns totaled $355 million — a $75 million increase, but the same share of market. The amount spent on a campaign necessary to reach the top 40 rose by $615,700 (9.4 percent), creating a new threshold just below $7.2 million.
Fig. 7: Average Money Spent on a Campaign Based on Total
Such a strong first quarter for both long- and short-form DRTV foretells a promising year for the DR industry in general. The 100-percent growth of the short-form market in less than five years is another milestone that is testament to the increasing popularity and strength of this medium. While 2007 short-form results totaled more than $4.5 billion, the first $5 billion short-form DRTV year is likely if the rate of growth holds through the remaining months of 2008.
Fig. 8: Average Money Spent on a Campaign Minus Top 40