The broadcast television networks are flexing their muscle in the ad market once again, despite declining ratings for their shows and worries that the Internet was poaching their audience and their revenue.
On Monday, with the annual springtime sales bazaar in full swing, executives at the major networks, including Fox Broadcasting and Walt Disney Co.'s ABC, were making deals with advertisers at significant rate increases over last year. The two networks were on track to surpass their overall hauls from a year ago.
Even spots on the evening network newscasts, which have witnessed a substantial decline in viewers, were being snapped up by hungry ad buyers. Network executives and advertisers said commercial time in morning news shows, daytime programs and late-night fare was also selling briskly.
"This shows that network television is still king," said Andrew Donchin, director of national broadcast for the ad-buying firm Carat USA.
"Even though their ratings aren't what they used to be, the networks have remained dominant. They are still bringing in a lot more viewers than anyone else."
In June of last year, the five broadcast networks, Fox, CBS, ABC, NBC and the CW, wrote $8.75 billion in business for prime-time spots alone. This month the total for the networks should be closer to $9 billion, although executives Monday were not willing to say definitively because the sales have not all been made.
Last week, after NBC Universal clinched a $1-billion deal for its television properties with Group M, one of the biggest advertising-buying companies, the floodgates opened in television's annual ritual known as the "upfront" market. Since then, the networks have been busy processing orders for their time. Fox has been selling time for rates that are nearly 9% higher than last year, and ABC's prices are up by about 10%.
There are several reasons for this year's unexpectedly huge demand for network time, including a generally stable economy, according to seven top network executives and advertising buyers interviewed Monday.
Another factor is that advertisers who waited to place their orders until after last year's TV season began in September were punished. In some cases, they had to pay as much as 40% more for spots than the prices negotiated during the June 2006 market. That encouraged many advertisers to place their orders early this year.
A new system for measuring viewers also prompted advertisers to get in early.
