Reports from Reuters suggest that US television network NBC is cutting its airtime prices in order to maintain its share of the advertising ‘pie’.
The networks are currently in the midst of their ‘upfront’ advertising sales pitch (see
US ‘Upfront’ Autumn TV Airtime Sales To Drop 14%, Says ABN), which often accounts for around three quarters of the total airtime sell. NBC is expected to retain its position as the advertising market leader, despite a predicted upfront decline of around 13%. It is hoping that the price cuts will help minimise this decline.
In the US airtime is traded on against CPMs – the equivalent of CPTs (costs per thousand) in the UK television market. NBC is thought have significantly reduced its high CPM for the autumn schedule upfront sales.
In the UK, ITV has also seen its CPTs creep up and up over the last few years, a development which has led many advertisers to seek alternative media. However, costs are beginning to drop, down 14.3% year on year for ITV Adults in May.
