Upfront 2014-15 Price Increases Less For Broadcast Networks

Modest broadcast price increases are estimated for the 2014-15 upfront advertising market -- a bit lower than for last year’s upfront market.

Broadcast networks will gain a price rise of 5.2% on average, to $23.48, for the cost per thousand viewers 18 and older (CPM) in prime time, according to Nutley, NJ-based Media Dynamics. A year ago, average price gains were 6.2%, to reach a $22.62 CPM average.

“While buys have yet to be finalized, we feel confident that the tally will be approximately at this level when weighted by dollar volume at each of the networks,” stated Ed Papazian, president of Media Dynamics.

In line with other media industry estimates, Media Dynamics is projecting that broadcast networks will see an overall volume decline of 4.6% to $8.25 billion from $9.15 billion a year ago.

Broadcast networks don’t typically disclose the percentage of TV commercial inventory they are selling. Media analysts say networks typically sell around 75% to 82% in an upfront period.

This year, Media Dynamics believes networks are not selling their usual levels of upfront inventory. Instead, the guess is that networks are holding on more upfront inventory in the hopes of obtaining better prices in the scatter market -- the sales periods that occur during the broadcast season.

Media Dynamics say some new upfront deals that are linked to C7 ratings guarantees will mean adding roughly 2% to 3% in viewership for the TV networks.

"Watching TV" photo from Shutterstock.

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