• by David Goetzl  @dgoetzl, March 15, 2007

As Madison Avenue bandies about terms like ROI, return on objective and audience engagement, Scripps Networks is introducing a new take: "ad receptivity." And as the company enters upfront season, it's plugging new research showing that it offers three of the top-five networks delivering on the metric, which gauges how an audience reacts to a particular message.

The rankings--based on a Scripps-orchestrated study conducted by Simmons Market Research over 10 weeks last fall and unveiled at an upfront event Wednesday night--show the Food Network is number one among the 25-to-54 demo in prime time, with DIY third and HGTV fourth.

Scripps says the research signals its networks' ability to outdo the field in ad effectiveness. It characterizes "ad receptivity" as "the greatest predictor of viewers' likelihood to take action." BET ranks second, with broadcaster Fox in fifth.

Steve Gigliotti, executive vice president-national ad sales, said the Scripps portfolio of lifestyle channels attract "a lean-forward, pay-attention audience."

Gigliotti said that if buyers and sellers come to a consensus on divisive issues such as commercial ratings and how to value DVR-enabled viewing, the Scripps networks' ad receptivity will allow them to stand out.

"When the dust settles, the value of our company will be that much more enhanced," he said.

Gigliotti said the networks benefit from ads in categories strongly connected to the programming, while its offerings generate significantly less time-shifted viewing than competitors with scripted entertainment.

The Simmons study devised the rankings by polling consumers about nine issues related to ads such as "I get valuable info from advertising on this" and "I am more likely to purchase products advertised on this."

While executives at other networks and even media buyers might quibble with the findings, Scripps continues its trajectory within the cable field. Last year, ad revenue jumped 15 percent to $836 million, while affiliate fees increased 17 percent to $195 million.

And Scripps executives cite three potential growth drivers going forward: Greater distribution for its three emerging networks, broadband ad sales and possible CPM increases.

While Food Network and HGTV are fully distributed with 91 million homes apiece, DIY and Fine Living are each only in 42 million, with Great American Country in 46 million. Those three have shown significant growth over the last year, led by Fine Living with a 13 million-home jump.

Still, Food and HGTV are the revenue engines, each with an array of broadband outlets where company executives continue to look to grow inventory. Videos employ pre-roll ads, but only on every other stream a consumer views.

Jeff Meyer, senior vice president-interactive ad sales, said Scripps has been successful at allowing endemic advertisers such as Kraft on Food and Kohler on HGTV to offer branded videos online. "In our categories, that's content," he said. "It's on target for what the users want."

Gigliotti said the networks charge lower CPMs for on-air than comparable performers, giving it room for growth. "We still have the head room," he said.

Scripps does not accept product integration, but does employ sponsored interstitials heading into commercial breaks, even followed by a spot from the same marketer.

On the programming front, Scripps announced that a third season of reality-competition "The Next Food Network Star" is slated for June, while the complementary "HGTV Design Star" has a second season launch coming in late July.

New series on Food include "Diners, Drive-ins & Dives," which goes inside vintage greasy spoons coast-to-coast and starts in April--and "Food Dudes" coming this fall, which follows two "offbeat twenty-somethings" trying to build a catering business amid Hollywood glamour.

This fall, HGTV is slated to debut "Guess What? You're Moving Out!" which follows "adult kids" as they're nudged out of their parents' home but unsuspectingly into a well-designed new place, and "Property Virgins," which chronicles the ups and downs of first-time home buyers.

In April, Great American Country has a two-part, behind-the-scenes look as Kenny Chesney prepares for a summer tour.

With reality competitions becoming tentpoles on Food and HGTV, a talent competition would seem to be a natural for GAC; however, USA Network already airs "Nashville Star." But executives continue to look for a way to launch their own distinctive version.