"The rationale behind launching a revised trend analysis was due to the increasing limitations of ARs," says Media Inflation Watch creator, Mike Leahy, of IBIS Media Data Services. "ARs, the industry currency, are a percentage figure of total audience. However, they can reflect badly on channel trends by remaining static or decreasing over time, even though the audience might be growing because of increased TV set penetration. It can be more meaningful for planners to know that 30 000 more people, for instance, were watching a given package of airtime and compare this with rate change. So it was time to update the methodology."
Planners can now check their budgets against inflation and calculate how much money is needed to maintain or increase exposure, while media houses can use the statistics to regulate and manage their rate strategies for the year. The industry can use this analysis as a tool in annual commitment negotiations to calculate new levels of investment with media owners, based on trends evident in Inflation Watch.
This analysis is significant for a company like Oracle Airtime Sales, for instance, with the many DStv channels it represents, as it incorporates a formula that accommodates advertising packages (a high proportion of DStv airtime is sold in packages) and loose spots, explains Leahy.
He says according to the latest data, January to December 2009 on 2008, the DStv stations monitored in Inflation Watch decreased rates by -7.49%, while performance increased by 4.10%. This compared to all media's weighted rate increase of 4.23% and a performance decrease of 0.4%.
The analysis is now available as an option to the company's Media Manager Online. It comprises over 20 years of data, quarter by quarter for 28 TV stations, 31 radio stations and 223 print titles, as well as out-of-home and cinema mediums.
