Advertising prices to rise by between 4 and 12 per cent / aim is to harmonise the TCP level / desired placement in advertising block possible for the first time
June 2005
SevenOne Media, the marketing company of the ProSiebenSat.1 Group, has recently provided the advertising industry with some initial information about its product and pricing policy for 2006. In the coming year the advertising prices for Sat.1, ProSieben, kabel eins and N24 will be adjusted as follows: for Sat.1 the advertising prices will be increased by an average of 5 per cent for all time slots [3:00 to 3:00 hours] and by 4 per cent for ProSieben. There will be double-digit increases in the Day Time for both Sat.1 and ProSieben. Prime Time prices for Sat.1 will remain stable and will be slightly reduced for ProSieben. For kabel eins prices will be increased by an average of 10 per cent for all time slots [3:00 to 3:00 hours] and by 12 per cent for N24.
The aim of this pricing policy for 2006 is primarily to return to the harmonisation of the TCP levels of the smaller and the large broadcasting stations and also of the Day Time and the Prime Time of the large broadcasting stations. The difference between the TCPs of the second TV market [kabel eins, RTL II, Vox] and the first TV market [Sat.1, ProSieben, RTL] was only 28 per cent in 2001. In 2004 it already stood at 36 per cent. A similar picture becomes apparent in the development of the TCPs of the Day Time and the Prime Time of the large broadcasting stations. While the difference between Day Time and Prime Time TCPs was only 28 per cent in 2001, it was 39 per cent in 2004. The intention is to move towards closing this gap in 2006.
Peter Christmann, Executive Officer for Sales & Marketing in the ProSiebenSat.1 Group and Managing Director of SevenOne Media: “In Germany we have a structural disadvantage in comparison with the TV markets of other countries. Due to our enormously broad and differentiated broadcasting services, the price structure and TCP level of the German TV market is very heterogeneous. In countries such as Italy, France and Spain, on the other hand, the advertising industry not only has far fewer broadcasting stations to choose from, but there is also a much more homogeneous price structure and TCP level. Because of this structural handicap, it has therefore been primarily in the German TV market that advertising companies on a European level have achieved savings during recent years.
By switching to Day Time and the smaller broadcasting stations as an alternative, advertising pressure in the German TV market has largely been kept constant despite tighter budgets – unlike markets in other countries.”
In addition to the pricing measures, in the coming year SevenOne Media will be offering the advertising industry the first-ever opportunity of booking their desired placement within an advertising block. In this case the listed price will be 20 per cent higher. However, the “Fair Share” principle, that is the fair rotation of the individual spots in the block, will remain the same for the other customers.
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