• by Wayne Friedman , Joe Mandese , May 29, 2009

The average cost per 30-second prime-time network TV commercial fell 3.7% to $126,204 during the first quarter of 2009, according to an analysis released this morning by TargetCast TCM. The analysis, which is based on data from SQAD's NetCosts service, indicates that the rate of network prime-time price erosion has begun to moderate from other recent quarters.

The analysis also found that Fox currently has the highest average unit cost at $253,000, while NBC has the lowest ($85,000).

TargetCast executives attributed the decline to two primary factors: the weakness of the quarterly scatter advertising marketplace as well as -- ironically -- an improvement in the networks' prime-time audience share.

"First, ratings stabilized compared to last year when ratings were depressed due to the writers' strike," states Gary Carr, senior vice president-director of broadcast services at TargetCast. "Ratings were virtually flat vs. year-ago."

The stabilization of network audience shares means that their supply of advertising inventory is not contracting in the face of decreasing demand, and the result has been lower prices.

As for the downturn in demand for scatter inventory, Carr noted that the "upfront marketplace was fairly healthy, and although the scatter market was less than robust, the networks needed to give away 25% fewer no-charge units to satisfy audience guarantees, thus keeping unit prices from falling too much."

Carr, however, pointed out that despite the poor economy, attractive pricing may have kept a fair amount of money in the marketplace.