3Q 2015 Long-Form Billings … Rise? Yes!1 Jan, 2016 By: Thomas Haire Response
After 11 consecutive quarters in the loss column, third-quarter 2015 results finally showed a year-on-year gain in long-form DRTV media billings. While modest, 3Q 2015 results rose nearly $11.2 million (5.5 percent) over the same quarter in 2014, landing at $214,854,300.
The price of cable media — which, during much of the long-form space’s drought, had stayed surprisingly high — continued its 2015 dip, helping drive a big increase in total 30-minute time slots purchased. That increase in time slots helped push the overall dollar total into the black in the third quarter. Meanwhile, the broadcast sector also enjoyed a major expansion in timeslots — despite a minor increase in pricing — that helped it catapult in total spending and market share.
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Eight of the 15 measured categories reported gains in 3Q 2015 — one fewer than in third-quarter 2014. Importantly, though, two of the long-form DRTV space’s key categories were among those gainers. “Health and Fitness” continued its 2015 rebound, rising $13.5 million (35.1 percent), while “Cosmetics, Hair and Personal Care” — which has struggled during the past two years — suddenly rebounded, gaining more than $13.5 million (24.6 percent). The “Entertainment” space enjoyed a 171-percent jump (nearly $2.5 million), most likely thanks to daily fantasy sports advertisers.
Among the losers, the “Home and Garden” and “Housewares and Appliances” both struggled, each losing near $5.8 million compared to 3Q 2014 results. “Personal Development, Self-Help, and Education” also tumbled, dropping nearly $4.8 million.
Only one of four media outlets posted a dollar-on-dollar gain compared to third-quarter 2014, with broadcast regaining the $21 million it’d lost in the same timeframe one year ago — and, with it, more than eight points of market share. Both cable (down 1.3 percent) and U.S. Hispanic (off by 0.8 percent) remained steady in total spending, while satellite lost more than 38 percent of its 3Q 2014 spend and 4.7 points of market share.
Spending in the top 30 markets rose, as well, gaining nearly $7.4 million (10.3 percent), with markets 11-20 responsible for the bulk of the resurgence — gaining $3.6 million (19.1 percent) compared to 3Q 2014.
The total number of time slots purchased leapt by more than 92,000 (17.3 percent), led by a national cable space that capitalized on pricing that dropped by more than 30 percent compared to a year ago to add more than 51,000 overall time slots. That 48.8-percent rise helped cable increase its market share by 5.3 points. The broadcast space, despite a 6.7-percent pricing increase, was able to increase overall slots by 21 percent. Lower cable (and satellite) pricing also keyed the overall drop in the average cost of a half-hour block — $38.43, or 10.1 percent — from 3Q 2014. ■
Long-Form Media Indices are conducted quarterly by the staff of Response. It represents in-house, non-brokered media billings for all agencies and marketers known to have purchased long-form (30 minutes) media during fourth-quarter 2015.
Companies that couldn’t or wouldn’t reveal their media billings by press time were estimated based on previous responses to surveys on the quarter in question and based on projects they were known to be involved with.
For the survey, the top 10 markets include: New York; Los Angeles; Chicago; Philadelphia; Dallas-Ft. Worth; San Francisco-Oakland-San Jose; Boston; Washington, D.C.; Atlanta; and Houston.
Markets 11-20 are: Detroit; Seattle-Tacoma; Phoenix; Tampa-St. Petersburg; Minneapolis-St. Paul; Miami-Fort Lauderdale; Denver; Cleveland; Orlando-Daytona Beach-Melbourne; and Sacramento-Stockton-Modesto.