paying a premium for prime time

Andrew Green

The big news in the US market last June was that the market had paid doubledigit increases in costsperthousand for the privilege of securing primetime spots for the fourth quarter and beyond. This was news mainly because the economy is not exactly on fire at present.

TV advertising pays back to advertisers in different ways, depending on their specific goals and targets. The key question is: can payback be improved by changing the overall marketing mix (ie between advertising and other activities) or simply by changing the TV schedule mix? At some point, advertisers will simply not be able to afford to keep paying inflationbusting increases in CPMs.

At the end of the day, the market seems dazzled by the appeal of getting advertising into the highestrated programmes. It is as true in other countries as in the US.