
Dominant kids' TV network group
Nickelodeon is witnessing major pricing gains in the first quarter. The uptick comes as it presents a new programming slate to advertisers, which continues the strategy of skewing shows that embrace
more than children.
After its New York upfront presentation on Thursday, Jim Perry, executive vice president of 360 Brand Sales for Nickelodeon/MTVN Kids and Family Group, said: "We are
effectively reaching a demo beyond kids, with teens, tweens and families alike."
All Nickelodeon networks -- Nickelodeon, Nick Jr., TeenNick, NickAtNite and NickToons -- will finish
first-quarter 2010 with the highest overall viewership ever.
The company is now a couple months into its re-branding of all its networks, which include the word "Nick" in its name. "It's
good for our viewers; it's good for business," says Perry.
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Ad-wise, fourth-quarter 2008 and first-quarter 2009 are seeing CPM pricing at 20% above upfront levels. The kids' upfront 2009 was
down a bit in overall volume for all Nick networks, with Perry adding that there was somewhat less inventory sold.
But he says there has been a resurgence in kids' TV spending on Nickelodeon
since October, especially with its top two advertising categories: toy/games and movies.
"Our big endemic categories are making comebacks," says Perry. "Toys/games finish the holiday season
in the positive territory for the first time in a long time. Movies finished No. 2, surpassing food. We are continually seeing strength there." He notes that there is a huge slate of the animated kids
and family films coming along in the next several months.
In regard to kid food marketers, which have been looking to adjust their messaging because of nutritional concerns for the last
several years, Perry says: "Companies continue to broaden their portfolios with either new products or new formulations. They are coming back to the marketplace." Perry adds: "When we finish,
first-quarter [food] will not be down."
What does Perry think about new kids' TV network competitors, such as the upcoming Discovery-Hasbro network, The Hub?
"No one can offer the
number of different networks and or digital sites and/or marketing programs that Nickelodeon can," says Perry. "We have many different [marketers] coming to us to be their exclusive advertising and
marketing partner. They want to give us 100% of their budgets."
Nickelodeon commands almost 50% of the marketplace, and, according to analysts' estimates, anywhere from 60% to 75% of all
kids' TV advertising dollars. Kantar Media estimates the kids' TV market was at $1.2 billion in 2009.
Some of the new shows for Nickelodeon include teen-target effort "Victorious," starring
Victoria Justice, who has to adjust to life at a performing-arts high school; "Kung Fu Panda: The Series," an animation effort from DreamWorks theatrical movie; and "T.U.F.F. Puppy," about an eager
but dim-witted dog named Dudley Puppy.
Also, there's "House of Anubis," a first live-action mystery show for Nickelodeon; "Planet Sheen," about the intergalactic tale of Sheen Guevera Estevez,
who is the attention-span-challenged kid from Nickelodeon's "Jimmy Neutron," and "Bubble Guppies," a new interactive, animated variety show for preschoolers set in a vibrant 3D, CGI-animated
underwater classroom.