Demand driving TV inflation sky high
Total cost per point (CPP) against All Adults for the first six months of 2006 is up a staggering 20%, compared to 8% for 2004/2005, according to Melanie Walter, media director of Starcom. "Increasing demand will continue to fuel TV inflation and if the current situation persists we will be seeing CPPs peaking at close to 30% higher than previous years, especially once the seasonal impact is factored in," she adds.
The major CPP increases have occurred in the second quarter of this year in line, with rising rates driven by demand. "The higher CPPs are applicable to all stations, however against All Adults, SABC2 and M-Net are showing the most significant hikes," says Walter.
"When analysing CPPs against 'Women', the year-to-date inflation of 28% versus 10% for the same period last year is extremely concerning. In both the 'Women' and 'High Income' segments, SABC1, SABC2 and M-Net are impacting significantly on the overall inflation."
e.tv is benefiting significantly from the heightened demand, with substantial increases in terms of airtime sold. SABC and M-Net are benefiting to a lesser degree, but are still reflecting strong year-on-year increases.
Walter cautions buyers of media to factor these increases into any CPP projections to ensure that projected performance levels are met. "Brands with broad target markets will suffer the most due to their reliance on SABC2 to build reach and there will be a lesser impact on those specifically targeting the black market as there is currently less demand on SABC1. Overall, there appears to be some good opportunities in the later time channels, which are less affected by demand."
