Commentary

Perception Is Reality

  • by March 5, 2001
Perception Is Reality

A new Mediaenomics report from Myers Reports, Inc entitled "What Advertisers Really Want From Media," points out that perception and reality are quite different when it comes to the actual value of broadcast and cable networks to advertisers.

The report claims to establish quantitatively that "these perceptions are not consistent with the media attributes that major national marketers actually value most."

This study re-orders the television marketplace based on the metric of ad revenue per rating point that can be applied across all networks with different daypart and programming schemes. This new metric shows that the relative yield of individual networks is strikingly different than what gross ad revenue measures would otherwise indicate. The networks offering discreet, highly valued audiences - particularly affluent ones and decision-makers - emerge as commanding the greatest relative marketplace value.

With a yield of nearly $1.6 billion per annualized rating point delivered in 2000, CNN Headline News emerges as the most valuable television network of the year. Here is the new value lineup of the top ten:

1. CNN Headline News - $1.590 billion per rating point
2. ESPN - $1.496
3. CNN - $1.327
4. NBC - $1.239
5. MTV - $1.190
6. VH1 - $1.035
7. CNBC - $930 million/rating point
8. ABC - $921
9. Animal Planet - $860
10. TNT - $830

Source: Nielsen Media Research calendar 2000 ratings estimates & Myers Mediaenomics revenue estimates.

The report states that the real premium comes not from the biggest supply of gross audience impressions, but from a media outlet's contribution to a unique supply of highly desirable impressions. It refutes the common belief that the younger demographic is most in demand by showing that three out of four marketers cited adults 25-54 as a "primary demographic target," versus 40 percent who cited adults 18-49

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