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Second-Quarter Short-Form DRTV Media Billings Increase $28.3 Million

1 Nov, 2008 By: Shay Moftakhar Response

'Computers, Software and Home Office' category continues surge with a $77.6 million gain, while 'Apparel' jumps 254 percent.


 

Syndicate Sniper

 

Only three of the five media distribution outlets enjoyed gains in the second quarter. Syndication continued its 2008 march with a whopping 60.3-percent advance, earning an additional $31.7 million. Spot TV crept up $6.4 million — a 14.8-percent gain — and Hispanic network TV managed to stay in the black with a $4.5 million gain (2.9 percent).

Figure 5: Second-Quarter 2008 Short-Form DRTV: Dollars Spent by Media Type Reported Time Period: Apr.1-June 30, 2008
Figure 5: Second-Quarter 2008 Short-Form DRTV: Dollars Spent by Media Type Reported Time Period: Apr.1-June 30, 2008

Network TV slipped $9.7 million — a 20.7-percent setback — and Cable TV dropped 0.6-percent, losing $4.6 million.

Figure 6: Total Short-Form DRTV Campaigns
Figure 6: Total Short-Form DRTV Campaigns

 

Rosetta Redux

 

The total number of individual short-form DRTV campaigns aired during 2Q 2008 decreased by 75, or 6.3-percent, to 1,115. The average cost of a campaign based on the total increased by 9.4 percent, or $88,057. However, the average cost a campaign outside the top 40 jumped 23.8 percent, or $82,050.

Figure 7: Average Money Spent on a Campaign Based on Total
Figure 7: Average Money Spent on a Campaign Based on Total

The top 40 campaigns accounted for 59.6 percent ($678.4 million) of total spending, shrinking $34 million (about 4.8 percent) from 2Q 2007. The top 10 campaigns totaled $363.4 million for just shy of 32 percent of the total — a $26.2 million increase and a 1.6-percent gain. The amount spent on a campaign in order to make the top 40 rose by a mere quarter of a percentage point, or $14,700.

Figure 8: Average Money Spent on a Campaign Minus Top 40
Figure 8: Average Money Spent on a Campaign Minus Top 40

The top 40 includes nine new campaigns compared to 1Q 2008 and 16 when compared to 2Q 2007. The No. 1 campaign this quarter, as in 1Q 2008, was "Rosetta Stone Various Software," spending more than $62.1 million. The campaign ranked No. 15 in 2Q 2007. "Proactiv Solution" advanced to No. 2 with the help of an extra $24.4 million, and "Video Professor Various Software" debuted at No. 3 with nearly $52.2 million spent. Last year's leader, "Ingles Sin Barreras Various Videos" suffered a $20.4 million decline in spending, but still secured the No. 4 position with $39.4 million spent.

Short-form DRTV media billings in 2008 seem to have reached an impasse. This quarter's slight overall gain seems to rest upon "Computers, Software and Home Office." Without big gains in the technology category, 2Q 2008 results may have shown a 5-percent decline of $50 million overall.

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