• by Joe Mandese  @mp_joemandese, May 3, 2004

A month before the 2004-05 network upfront advertising marketplace is expected to heat up, new data suggests surging demand for ad inventory on the Big 3 broadcast networks, and for almost every daypart. Total ad spending on ABC, CBS and NBC during the first quarter of 2004 rose 10.6 percent over the first quarter of 2003, according to the self-reported estimates compiled by Ernst & Young LLP and released today by the Broadcast Cable Financial Management Association.

The data, which is regarded as being some of the most accurate accounting of actual network ad spending, seem to belie rhetoric that the broadcast networks had a weak first quarter. They also reinforce some shifts taking place in demand among the major networks' dayparts. Demand for ad inventory on the networks Saturday morning children's programming lineups rose 30.3 percent during the quarter, a stark contrast to a protracted erosion in network kids' ad spending that likely reflects the overall upswing in demand for children's programming.

Conversely, demand for the networks' early evening news programming continues to erode as news-oriented marketers shift to early morning and late night dayparts. Gross evening news ad sales rose just 0.3 percent during the first quarter, but after factoring for agency commission, the Big 3 networks, actually took a 0.6 percent loss on their net evening news ad sales from the first quarter of 2003.

The biggest gainers after kids were early morning news (+21.5 percent) and late night (+14.0 percent).

Sports ad sales rose 9.4 percent, which is considered a strong start to a year that will wrap up with an Olympic surge on NBC, which will also benefits from a boon in special series finale sales, including the much anticipated - and hyped - final episode of "Friends," which is fetching $2 million per 30-second ad unit.

"With the final episodes of several top-ranked programs, the Summer Olympics and a Presidential election occurring in the coming quarters, we're hoping to see the favorable results continue throughout the year," noted Mary Collins, president-CEO of the BCFM.

TV buyers had cited a weakness in the first quarter network scatter marketplace as evidence that network ad demand might not be that strong heading into the 2004 and the pre-upfront ad sales period. But the BCFM data suggests that however the Big 3 managed their inventory, they still reaped double-digit gains during what was supposed to be a relatively weak quarter. Scatter market ad demand has picked up considerably in the second and third quarters, sending an even stronger indicator heading into the upfront.

First Quarter '04 Network Ad Sales

---Q1 '04 Ad $---    Vs. Q1 '03 
Primetime    $1,796.6 million        +10.9%  
Late Night     $197.0 million        +14.0% 
A.M.           $237.8 million        +21.5% 
Daytime
$255.5 million         +7.1% 
Kids            $10.9 million        +30.3% 
Sports         $809.9 million         +9.4% 
News           $152.1 million         +0.3% 
Total        $3,459.8
million        +10.6% 

Source: Broadcast Cable Financial Management Association from self- reported data from ABC, CBS and NBC compiled by Ernst & Young LLP.