TVB: Local Spot Beats Network Scatter

Network scatter CPMs reflected markedly steeper increases from the 2013 first quarter to the 2013 second quarter, as the average daypart costs rose 32% for adults 25-54, while spot TV CPMs increased only 10% over the same period, according to TVB analysis of SQAD data.

TVB on Tuesday released an analysis of second quarter 2013 data from TV research company SQAD that it says further solidified local spot television’s “dominant and growing cost efficiency advantages over network scatter.”

Network scatter CPMs reflected markedly steeper increases from the 2013 first quarter to the 2013 second quarter, as the average daypart costs rose 32% for adults 25-54, while spot TV CPMs increased only 10% over the same period.

The latenight daypart demands the most extreme premium for network scatter, as the projected $37.19 adults 25-54 CPM is 94% higher than spot TV’s $19.19.  Early morning’s and early news’ scatter premium are 47% and 11% more expensive, respectively, compared to spot CPMs for these dayparts.  Spot TV primetime CPMs are right on par with network scatter, TVB said.

The group said that the CPM discrepancy is wide enough that many dayparts “offer a sizable cost differential even over a smaller range of markets.  For example, network scatter CPMs are still 50% higher for early morning than a spot TV buy of the top 80 of the 210 U.S. DMAs.  On a CPM basis, a latenight network scatter buy is 90% more expensive than just the top 10 DMAs for the daypart.”

Jack Poor, TVB’s VP of marketing insights, said: “Based on the analysis of the second quarter 2013 SQAD data, it is clearly incorrect to conclude that it’s more efficient for an advertiser to default to a national network scatter approach. In fact, to optimize reach and economics, it’s measurably more efficient for a national or regional advertiser to take advantage of the CPM efficiencies offered by local spot television.”

The full analysis by the TVB is available here.

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