The TVB released an analysis of 2nd Quarter 2013 SQAD data that 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 1st Quarter to the 2013 2nd Quarter, as the average daypart costs rose 32% for A25-54, while Spot TV CPMs increased only 10% over the same period.
The Late Night daypart demands the most extreme premium for Network Scatter, as the projected $37.19 A25-54 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 Prime CPMs are right on par with Network Scatter.
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 Late Night Network Scatter buy is 90% more expensive than just the Top 10 DMAs for the daypart.
“Based on the analysis of the 2nd 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 ,” noted Jack Poor, VP of Marketing Insights for the TVB. “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.”