• Advertising Age, Monday, October 6, 2008 9:45 AM

The average cost for a 30-second prime-time commercial dipped 4.1% to $130,089 during the 2007-2008 season, per TargetCast TCM. The drop represents a noticeable widening over last season's 0.7% drop.

An analysis showed prime-time ratings for the four major broadcast networks fell 13% last season. When ratings go down, so do prices for the ads.

Audiences are smaller "because of [media] fragmentation, fewer scripted shows and cable networks in the summertime have ratings that shoot up because they run their good programs," says Gary Carr, TargetCast director. Factor in the writers strike and ratings that fell short of what was stipulated in agreements, and "it is not surprising that broadcast pricing ebbed once again."

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