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Research

3Q Short-Form DRTV Media Billings Approach $1.2 Billion

1 Feb, 2008 By: Shay Moftakhar Response


 

Cable Wraps It Up

 

Cable TV maintained its 2007 rise with a $368.6 million leap ? a 72-percent increase ? to $880.1 million. It also increased its market share by 11.1 percentage points ? to 74 percent ? when compared to 3Q 2006 results. Combined with the additional $385.8 million spent in the cable TV arena in the first two quarters of 2007, the cable TV short-form DR market has grown more than three-quarters of a billion during the first nine months of 2007.

Fig. 4 Top 40 Brands in Third-Quarter 2007 Short-Form DRTV Reported Time Period: Jul. 1-Sept. 30, 2007
Fig. 4 Top 40 Brands in Third-Quarter 2007 Short-Form DRTV Reported Time Period: Jul. 1-Sept. 30, 2007

Similar to 2Q 2007, Hispanic network TV gained 15.2 percent from an additional $19.2 million spent. Syndication edged up 6.8 percent with an additional $4.2 million and spot TV posted a $2.8 million gain ? a 6.3-percent rise.

Also, similar to 2Q 2007, only network TV reported a decline. However, the category's 3Q decrease was six times its 2Q decline, losing $18.6 million (25.7 percent).

Fig. 5 Third-Quarter 2007 Short-Form DRTV: Dollars Spent by Media Type Reported Time Period: Jul. 1-Sept. 30, 2007
Fig. 5 Third-Quarter 2007 Short-Form DRTV: Dollars Spent by Media Type Reported Time Period: Jul. 1-Sept. 30, 2007

 

40-40 Club

 

The top 40 campaigns increased 40 percent compared to 3Q 2006 figures with a strong $213.9 million gain. The top 40 campaigns earned $746.9 million ? 62.8 percent of total spending. The top 10 campaigns totaled nearly $342.7 million ? 28.8 percent of overall spending.

Fig. 6 Total Short-Form DRTV Campaigns
Fig. 6 Total Short-Form DRTV Campaigns

The top 10's total was more than $88.2 million, or 34.7 percent, higher than 3Q 2006. However, both the top-40 and top-10 percentages of total spending were 3-percent lower than 3Q 2006's totals. The total number of individual short-form DRTV campaigns aired during third-quarter 2007 increased by 118 to 1,212.

Fig. 7 Average Money Spent on a Campaign Based on Total
Fig. 7 Average Money Spent on a Campaign Based on Total

The average cost of a campaign based on the total increased 32 percent (or $237,958) to $981,015. The average cost a campaign outside the top 40 rose at an even higher rate ? 42 percent, or $111,650 ? to $377,182. Advertisers had to spend at least $8 million in 3Q 2007 to be a top-40 campaign.

Compared to second-quarter 2007, there were eight new campaigns in this quarter's top 40. Dell reappeared after an absence in 2Q 2007 and claimed three spots in the top 40 (No. 11 was its highest entry).

Fig. 8 Average Money Spent on a Campaign Minus Top 40
Fig. 8 Average Money Spent on a Campaign Minus Top 40

Despite inflating costs per campaign experienced in 2007, Response predicts a small decline in the rate for fourth-quarter. With few new programs airing due to the writers' strike, many shows struggled to command the big bucks from advertisers.

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