2Q 2010 Long-Form Media Billings Rise 2.8 Percent18 Oct, 2010 By: Jackie Jones, Thomas Haire Response
The number of timeslots purchased decreases, increasing the average cost of a half-hour block by 6 percent from 2009's record lows.
Response’s second-quarter 2010 long-form DRTV media billings research continues the same mixed trend seen in 1Q. Though down almost $34 million (11.2 percent) from 1Q 2010, second-quarter results ($268,292,900) saw a 2.8-percent increase ($7.5 million) when compared to second-quarter 2009. This result is the first time second-quarter long-form billings have increased since 2008. In contrast to important records achieved in 2Q 2009, this year’s second quarter saw a significant decrease of nearly 21,000 in the number of timeslots purchased and an increase in the average cost of a half-hour block to $436.65.
Health Takes a Hit
Nine of the 15 measured categories reported losses in second-quarter 2010, a slight improvement from 1Q 2010. “Cosmetics, Hair and Personal Care” saw the greatest dollar increase of $12 million (18.5 percent) when compared to 2Q 2009, and “Personal Development, Self-Help and Education” saw a significant percentage spike of 65 percent ($9,331,300).
“Heath and Fitness,” “Sports and Outdoor Activities” and “Electronics” took the hardest hits this quarter. “Health and Fitness” saw the greatest dollar decrease, losing $6,534,100 when compared to the second quarter of last year. “Electronics” saw the most significant percentage decline, dropping 100 percent of its $2,142,500 reported in 2Q 2009. “Sports and Outdoor Activities” suffered another notable loss with an 82.7-percent decline, the second-highest percentage seen across the board in all categories.
Bad Quarter for Broadcast
Two of the three forms of media distribution reported dollar gains this quarter. National cable saw a 11.3-percent increase of $15,766,500, a reversal in fortunes from its $30 million loss in 2Q 2009. Satellite saw an increase as well of $2,617,500, a 13.9-percent increase when compared to the second quarter of the previous year. Broadcast suffered a decline of 9 percent, dropping nearly $11 million from 2Q 2009. Broadcast was also the sole form to see a decrease in its percentage of market share, dropping 5.4 points.
National cable was the only form of media distribution to see a jump in the number of time slots and percentage of total number of timeslots purchased. It increased 8.9 percent (16,369) from the second quarter of 2009, bringing its total number of timeslots purchased to 183,101. Both broadcast and satellite saw decreases of 22,023 (5.3 percent) and 15,248 (27.9 percent), respectively.
Top-30 Market Share Declines
The total number of timeslots purchased decreased by nearly 21,000, pushing the average cost of a half-hour block to $436.65, a 6-percent ($26.15) spike. This figure is a slight decline from the $475.99 reported in 1Q 2010.
Spending in the top-30 markets continued its declining trend from the second quarter of the previous year, dropping 46.3 percent, about $63.5 million. Top-30 spending in 2Q 2010 grabbed only 27.5 percent of the total market, a significant decrease from 2Q 2009, which saw the top 30 markets maintaining more than 50 percent of the total market. Breakdowns of the top-30 markets all saw declines; the top-10 markets slid 21.4 percent, a $11,139,500 decrease, markets 11-20 fell 48.7 percent ($21,621,700), and markets 21-30 suffered the biggest percentage drop of 75.4 percent, a $30,812,700 decrease.
Hope for Long-Form?
The slowly rising costs of a half-hour time slot reported in 1Q 2010 was a positive sign for the long-form market, and the continued trend in the second quarter shows promise. However, the decrease in top-30 spending seen in 1Q 2010 continued in the second quarter. Timeslots, costs and spending in the top 30 markets continue to be the most significant indicators of how long-form DRTV will fare in 2010. n
“The slowly rising costs of a half-hour time slot reported in 1Q 2010 was a positive sign for the long-form market, and the continued trend in the second quarter shows promise. However, the decrease in top-30 spending seen in 1Q 2010 continued in the second quarter.”