• by Wayne Friedman , August 16, 2005

Ad sales at the Big 3 TV networks slipped a bit in the first part of the year, network sales data compiled by the Broadcast Cable Financial Management Association. But the 1.9% drop wasn't so bad, considering that 2005 is an odd-numbered year--a non-Olympic, non-big political year, in which ad revenues typically fall. The first six months of 2005 fared better than the last odd-numbered year, 2003.

For example, although total net revenues were down $52 million to $2.85 billion from the second quarter of last year, those numbers were up nearly 6%--or more than $152 million--over the second quarter of 2003.

"The narrow losses in 2005 primarily represent what we've learned to expect when comparing the three networks' odd versus even year results, which feature Olympics and national election campaigns," said Mary M. Collins, president/CEO of BCFM in a statement.

The better-than-average advertising numbers are partially a result of the broadcast networks' strong upfront advertising sales period in 2004, in which advertisers buy a full season worth of TV time. Pulling down the networks' ad revenue were the well-reported slow scatter markets in the first half of the year--in which many networks witnessed some major advertiser cutbacks and program price decreases.

Sports TV advertising showed the greatest gain--up 15.6% in the second quarter. But for the first six months of 2005, sports were off 11.7%. Much of that drop came from the absence of TV advertising in the National Hockey League, caused by a year-long suspension of games. On the other side of things: Kids' television was off 13% for the quarter and 15% for the first six months. It's not surprising that some kids' network programmers have decided to curtail business on this programming category--which could have a further downward effect on advertising sales. The WB, for example, will suspend its weekday kids' block.

Daytime network TV gained ground--up by nearly 3.5% for the quarter, and by 7.6% for the first six months versus a year ago. News was down by 0.8% in the second quarter, but up by nearly 5.5% when compared to the first six months of last year.

The BCFM is a trade association focused on broadcast and cable industry financial issues. ABC, CBS and NBC provide internal sales estimates to the BCFM each quarter as part of a revenue tracking report. For years, the group has made unsuccessful attempts to get other networks--Fox, the WB, and UPN--to also submit their financial numbers. Until the Cabletelevision Advertising Bureau changed its policy a few years ago, major cable TV networks also reported data publicly.