TVB Study Challenges Network TV Value

Advertisers that buy network TV because they presume it’s cheaper than buying spot TV, may be throwing money out the window. That’s according to a new TVB study that found that spot TV often less expensive than buying network scatter.

The timing of the study comes as the spot TV market has bounced back from a dismal advertising slump that eroded prices, while network has held up.

“There’s been this old adage that network is cheaper than spot. That has obviated all other marketing considerations and no one has challenged it,” said Jack Poor, vp of strategic planning for TVB. “This study is an eye opener.”

The study, based on two years of SQAD data for Adults 25-54 found that advertisers would save money if they buy spot, particularly early morning and late night. In early morning, buying spot delivered a 37 percent premium. Late night spot delivered a 53 percent premium. Late news delivered a 7.8 percent premium. Prime time bounces around between network and spot. There is little difference in CPMs for news.

TVB and its broadcast members will be hitting the streets with the study in the coming weeks.
“When advertisers plan, they shouldn’t start with the old assumption, and that’s what people have been doing.” Poor said.