Cost of :30 Spot on Network TV Drops 16%: TargetCast

The average cost of a :30 spot on prime time dropped 16%, to about $84,000 in the third quarter, from the same quarter in 2008, according to analysis by independent media agency TargetCast. The decrease - slightly more than in recent quarters when declines were in single digits - was due to lower ratings and the recession.

Ratings among adults 25-54 were down about 10% in the quarter, compared to the same quarter last year, excluding the Olympics which ran in Q308, says Gary Carr, TargetCast svp and executive director of national broadcast.

TargetCast said Fox has the highest average cost, at $121,000. ABC, CBS and NBC average between $70,000 and $80,000.

Total broadcast dollar volume for the upfront, which stretched well into the third quarter, was down 22% for broadcasters, to $7.2 billion, according to Credit Suisse.

The cost of cable spots increased slightly during the same period. Ratings across the top 15 cable nets were up nearly 5% in 25-54s, due to original scripted series,newsworthy events and reality shows. The average cost of a prime time cable ad across those top 15 nets increased a corresponding 5%, to just over $10,000. ESPN and TNT had the highest ad cost, at $27,000 and $17,000, respectively.

Cable’s upfront was also down significantly, though not as much as broadcast. The tally for cable was $6.73 billion, down 12% from last year.

The fourth quarter may not follow the trend seen in Q3, media buying executives believe, pointing out that networks have been earning double-digit CPM price increases in scatter, according to MediaPost.