Advertising revenue: a trivial pursuit?
The Seven Network is leading in commercial advertising revenue shares for the first six months of 2008.
Seven has a 39.13% share of advertising revenue over Nine’s 31.78% and TEN’s 29.09%.
The advertising industry directed $678,464,942 worth of advertising to New South Wales, $429,681,531 to Victoria, $329,029,345 to Queensland, $161,623,296 to WA and $119,049,082 to SA.
$34,896,872 was spent between Tasmania and the Northern Territory, which enjoyed the biggest increase of all at 4.1%.
Yesterday Seven announced two new senior sales appointments for Sydney and Melbourne: Adam Elliott as Sydney Sales Director and Peter Charles as Melbourne Sales Manager.
Today Nine CEO David Gyngell begins an East Coast pitch to buyers and media on the Network’s improving performance and announces Nine’s second half slate.
“Today’s numbers are clearly encouraging. They re-affirm what the market already knows – that Nine is turning the corner, first in terms of audience growth and now in terms of achieving our justifiable revenue share. But as I keep stressing, much hard work lies ahead of us,” he said.
Nine Press Release:
The Nine Network was encouraged by its performance in advertising share revenue figures released today, showing the Network had delivered a solid 31.8% share for the Five City markets and 32.6% for Three City (East Coast) revenue for the period January to June 2008.
Nine Network CEO David Gyngell said the outcome was at the top end of expectations, given the historical lag of 6-12 months between performance in audience share being matched by revenue share.
Mr Gyngell said today’s figures reflected advertising revenue written on the basis of 2007 calendar year audience figures, where Nine had suffered a decline of more than 15% in the key advertising demographics during a very tough period. Conversely, Nine’s audience in the same sector for January to June 2008 had increased by 5.6% during the Network’s resurgence.
“So today’s numbers are clearly encouraging. They re-affirm what the market already knows – that Nine is turning the corner, first in terms of audience growth and now in terms of achieving our justifiable revenue share. But as I keep stressing, much hard work lies ahead of us.” he said.
Network Sales Director Peter Wiltshire said today’s numbers were a matter of history, and that Nine’s target of 35% in 2009 was warranted.
“I see this simply as the floor from which Nine has very achievable aspirations for growth. We respect our tough opposition, but we’re up for the fight,” he said.
“As we all know, revenue is intrinsically linked to the demographic performance of the network and the news on both fronts in 2008 is positive and consistent,” said Wiltshire.
TEN Press Release:
TEN’S performance for the half to June 08:
* TEN was the only network to gain revenue share on the prior corresponding half – up to 29.09 per cent from 28.10 per cent.
* Key comparatives:
Year on year – 30.04 per cent for year to June 08, 29.26 per cent in 07
Period on period – 29.09 per cent to June 08, 28.10 per cent to June 07
* We also grew total revenue – up 3.76 per cent on the prior corresponding half and 7.62 per cent on the prior year.
* Our revenue share performance complements our ratings performance.
Market conditions
* The figures released today underline a flat metropolitan advertising market – up 0.214 per cent, and up 0.731 per cent for the total market including regional.
* This is consistent with our commentary to the market in June.
Second half calendar 08
* TEN is well placed to deliver on expectations.
* Continuing focus on 18-49s, remaining No. 1 in 16-39s and incrementally growing our share in 25-54s.
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