• by Wayne Friedman , June 22, 2007

Sending a shot across the upfront bow, Nickelodeon has struck a massive multimillion kids' upfront deal with Starcom USA based more or less on old-fashioned program ratings.

By contrast, many broadcast nets have made deals based on new commercial ratings deals--and many cable networks are expected to follow suit. "Both sides agreed that using quarter-hour average program ratings was actually a better representation for Starcom's clients," says Jim Perry, executive vice president of 360 brand sales of Nickelodeon/MTVN Kids and Family Group.

Quarter-hour average ratings aren't typically used to guarantee media deals with advertisers. In general, ad guarantees on program ratings are minute averages of a half-hour, an hour, or two hours, depending on the show.

Media executives estimate the Nickelodeon-Starcom deal is valued at $70 million to $100 million, with the cost-per-thousand viewer program prices about the same as a year ago. Starcom clients include Nintendo, Lego, Disney theatrical kids movies, and Kellogg's.

"Nickelodeon is a leader in their kids' programming," says Jackie Kulesza, vice president and activation director for Starcom USA. "It's fair to say, for the kids' market, they are pretty close to a must buy."

Neither Starcom or Nickelodeon executives would comment on specific deal points.

Ideally, Starcom wanted to ink exact minute commercial ratings media deals--something the media agency has been pushing for some time. It recently struck just such an upfront deal with Discovery Networks based on exact minute ratings.

"We couldn't come together on minute-by-minute," says Sam Armando, senior vice president and director of video research for Starcom USA. "When you start there, you look for the next best measurement." Armando adds that there is virtually no difference in the commercial ratings versus the quarter-hour average program ratings.

One veteran kids' media buyer said the Starcom deal comes late into the kids' upfront buying season. "None of my clients are in any rush to make deals," he said.

Overall, Nickelodeon's Perry says the market is in better shape than a year ago. "The kids' market is healthier than it has been in the past," he says. "I think it's going to be slightly up in our endemic kids' business. We are going to see the toy category come back. The DVD business will be strong. [However] it's still early to gauge the overall. I don't know where it is going to end up."