Hallmark Channels Register Solid Ad Gains

cedarcoveHallmark Channel and Hallmark Movie & Mysteries channel have been posting recent strong advertising results — all despite a generally weak current TV ad market.

For calendar year 2015, advertising business for Hallmark Channel and Hallmark Movie & Mysteries channel is up some 25% versus a year ago. Although just a fraction of its overall advertising deal-making business — 7% or 8% —  this remains a good indication for the independent cable network group.

“It’s really, really strong,” says Bill Abbott, president/CEO of the Crown Media Holdings, the parent company of Hallmark Channel and Hallmark Movie & Mysteries channel. In its fiscal year 2013, Crown Media Holdings posted $378 million in revenue.

As with most cable networks, Hallmark pulls in about 50% to 60% of the advertising business in the upfront (for the September through August period). The remaining inventory comes from the quarter-by-quarter scatter markets.

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The scatter marketplace has also seen good results for Hallmark — 20% gains in overall revenues. “The volume is there; we are up double digits [percentages],” says Abbott.

Some of the improving categories for Hallmark are automotive, entertainment, credit cards and financial services. Abbott says Hallmark’s long-held image as a strong family-friendly programming environment continues to build.

But there is a downside when it comes to pricing, says Abbott. “We are dramatically undervalued in the marketplace.”

Hallmark's success comes amid some issues for the overall weak TV ad marketplace. “Pricing continues to be a struggle,” he says. “The market is still relatively soft. Supply has been an issue in the cable space.”

Many of the top cable networks continue to trend down in overall viewers in 2014.

For example, of the top 20 networks, only two posted better results in 2014 versus the year before among 18-49 prime-time viewers — cable network leader ESPN (up 3% to 990,000 viewers) and VH1 (6% more to 442,000).

The picture was somewhat better when looking at total prime-time viewers, where five of 20 networks were the same or better than an year ago — ESPN (a 6% gain to 2.28 million); Fox News (even, at 1.45 million); Discovery (up 1% to 1.41 million); HGTV (adding 5% to 1.34 million); and TLC (even, at 1.08 million).

Just under the top 20, Hallmark is in 23st place among total viewers with 894,000  witnessing some improvement. It ended 2013 with 866,000 total viewers.

Hallmark tallied big ratings viewership this holiday season under its “Countdown to Christmas” programming umbrella. Success also has come from its first prime-time TV series “Cedar Cove,” which started last year. It now has four original series and will move to a total of six original series for 2016.

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