Response Magazine Site Response Expo Site Direct Response Market Alliance Site Response TV Site Market Research Job Board

 

   Log in
  



Research

Short-Form DRTV Media Billings Off Nearly 13 Percent in 1Q 2009

1 Aug, 2009 By: Shay Moftakhar Response

The 'Drug and Toiletry' category spikes $52.2 million, while the 'Computers, Software and Home Office' category loses $74.3 million.


Continuing the trend started in third and fourth quarters of 2008, short-form DRTV media billings as provided by TNS Media Intelligence (TNSMI), reported another loss for 1Q 2009. First quarter short-form DRTV billings fell 12.8 percent, an overall loss of $150.6 million but managed — as in 3Q and 4Q 2008 — to remain above the $1 billion mark.

 Figure 1
Figure 1

This is in contrast to long-form DRTV media billings, which boasted a 1-percent gain in 1Q 2009 with a record number of timeslots purchased and a record low in the average cost of a half-hour block of time. The sharp drop in the average cost of media offsets any decline in spending — ad rates have definitely declined more than 13 percent in the past year.

 Figure 2
Figure 2

 

$400 Million in Drugs

 

Only six of the 17 categories claimed gains this quarter, half the number of the same periods in 2007 and 2008. "Drug and Toiletry" boasted the highest dollar gain with a $52.2 million (14.8 percent) advance, pushing its total to $403.7 million, while "Collectibles and Art" earned the top percentage-gainer honors, notching a 254.6-percent increase of $3.7 million. "Food and Beverage" maintained a healthy appetite with a 211.5-percent rise. "Apparel" kept up appearances with another 42-percent increase, while "General" continued its upward trend with a 21-percent climb of $21.3 million. "Publishers and Book Clubs" noted a $4.8 million windfall for 18.5 percent.

 Figure 3
Figure 3

The "Audio Supplies and Equipment" and "Video Supplies and Equipment" categories lost $48.3 million and $38 million respectively. As a sign of the times, the "Business" category declined $26.4 million, while a weak housing market pruned "Lawn, Garden, Seeds and Bulbs" by $12.1 million. Forfeiting its $78.3 million gain in 1Q 2008, "Computers, Software and Home Office" suffered the greatest dollar loss — $74.3 million — while "Multiple Category Ad" saw the greatest percentage loss — 68.4 percent ($7.4 million).

 Figure 4
Figure 4

 

Syndicus Maximus

 

Three of the five outlets of media distribution gained in the first quarter, continuing 4Q 2008's trend. Network TV continued its gains with a 5.7-percent increase of $3.1 million. Spot TV followed suit with a $4.7 million gain of 7 percent. Syndication gained 26.6 percent, an advance of $18.3 million.

 Figure 5
Figure 5

Continuing its third straight quarter of losses, cable TV experienced a devastating 16.8-percent drop — down to $678 million. Hispanic network TV lost 18.3 percent ($30.6 million), squandering its $37.5 million gain of a year ago.

 Figure 6
Figure 6

 

Dinero por Oro por Favor

 

The total number of short-form DRTV campaigns aired fell 1.9 percent to 1,160. The average cost of a campaign fell by 11.1 percent ($110,134), but the average cost of a campaign outside the top 40 increased 17.9 percent ($7,600).

 Figure 7
Figure 7

The top 40 campaigns accounted for 52.6 percent ($538 million) of the total, a 21.7 percent decline from 4Q 2007. The top 10 campaigns totaled 25.1 percent ($277.8 million), a 4.3-percent drop. The amount spent to rank among the top 40 slid 17.7 percent.

 Figure 8
Figure 8

The top 40 included 20 new campaigns compared to 4Q 2008. "Oropordinero.com" enjoyed the highest debut, ranking at No. 14. "Nutrisystem Nourishment" dislodged "Cash4Gold" for the No. 1 spot with a massive 89-percent increase in spending of $31.7 million — outspending No. 2 "Proactiv Solution" by $23.9 million. "Cash4Gold" fell to No. 4, suffering $16.4 million spending decrease.

Even though 1Q 2009 numbers are $77 million below the $1.1 billion benchmark set in the second half of 2008, the total still remains well above $1 billion. How far will the industry will contract? Will it stay above $1 billion quarterly? The next three quarters will tell the story.


Add Comment




©2014 Questex Media Group LLC. All rights reserved. Reproduction in whole or in part is prohibited. Please send any technical comments or questions to our webmaster. Contact Us | Terms of Use | Privacy Policy | Security Seals