Response's Short-Form DRTV Media Billings - 2005 Billings Fall Just Short of $3 Billion"1 May, 2006 By: Shay Moftakhar Response
Cable TV spending increases by $52.7 million in 4Q results.
Cable TV led the five outlets in extra dollars spent when compared with 4Q 2004 results, earning an 11.3-percent increase of $52.7 million. Network TV and Hispanic Network TV both enjoyed $25 million increases. Spot TV's $9 million dollar loss translated to an 18.3-percent drop, while Syndication's $8 million decline set it back 12.3 percent.
Fig. 6 Total Short-Form DRTV Campaigns
Just nine more short-form campaigns saw airtime in 4Q 2005 than a year ago (1,267), which means costs had to "trickle up." The average cost of a campaign increased 11 percent — $64,320. More impressively, the average cost of a campaign without factoring in the high-paying top 40 campaigns rose 14.6 percent ($31,620).
Fig. 7 Average Money Spent on a Campaign Based on Total
The top 40 campaigns accounted for 63 percent ($518.5 million) of the total. The top 10 campaigns totaled $270.5 million — a $12.6 million decrease, but still nearly accounted for 33 percent of total spending. The entry level spend to reach the top 40 rose by $211,200 compared to 4Q 2004.
Fig. 8 Average Money Spent on a Campaign Minus Top 40