SQAD Network vs. Local Analysis
TVB analysis of Spot TV vs. Network Scatter SQAD CPMs is now updated to projected 1stQ, 2012. And the news is very, very good for Spot TV!
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It's a two way win for Spot TV. With three full years and one quarter of data now in-house we can clearly see trends that place Spot TV in a near optimal position both in its ability to compete effectively with network scatter in 2012 and also to recover Spot’s pricing power to pre-recession levels.
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In the four key dayparts that we focus on; Early Morning, Early News, Primetime and Late Nite Spot DMA CPMs are projected to be significantly stronger than 1stQ 2010 and 2011 and basically back to 1stQ 2009 levels. Network Scatter, by contrast, did not suffer the year-to-year declines that Spot did but consistently grew CPM in all key dayparts over 2010 and 2011.
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The analysis of the new data tells us that Spot should enjoy a strong competitive 1stQ vs. Scatter and an extremely strong advantage in 2ndQ , 2012 where network CPMs traditionally peak. This is despite the fact that Scatter’s premium to the Upfront has dropped from mid-teens last season to about 7% for this year.
Bottom Line: From a SQAD planner point of view Spot TV gets to have its cake and eat it too. Solid 1stQ to 1stQ CPM increases auger well for Spot pricing in 2012. And yet, Spot’s efficiency story vs. Network Scatter continues to be good right now and headed toward great as we hit 2ndQ , 2012.
Note: All CPM data = A25-54
Click here for full study including historical tracking (PPT)