Ad revenue drops but Seven, Nine are up.

815370-aussie-moneyAd revenue for Free to Air commercial TV fell 3.83% in the second half of 2012 to $1.52 billion.

TEN took the biggest hit, dropping five share points, according to Free TV figures compiled by KMPG.

Capital City revenue July-Dec 2012
Seven 40.29% (up from 38.1% in the previous corresponding period)
Nine 38.14% (up from 34.9%)
TEN 21.57% (down from 27.03%)

AdNews reports the overall metro market dropped 3.8% with Sydney declining 2.94% to $560.5 million and Melbourne down 2.99% to $421.1 million. Brisbane fell 5.65% to $267.2 million while Adelaide was hit hard with an 8.77% drop to $107.4 million and Perth declined 2.61% to $170.4 million.

Seven has claimed the performance is a first by any network not broadcasting an Olympic Games in an Olympic half year. No network has delivered two consecutive 40% plus revenue share results in the Free TV figures in a calendar year.

Tim Worner, CEO of Seven Network, said: “This big number is a little piece of Australian television history – our sales guys and the production and programming team they work with should be really proud. Our outperformance in revenue share has now been sustained over many seasons and the reason is simple: advertising with Seven works and our partners keep coming back for more.

“Our Chief Sales and Digital Officer, Kurt Burnette, and his teams have built a culture that people love to work with. We challenge our teams to keep coming up with new ideas, new business solutions, new ways to integrate our customers’ messages into our content. And, they keep executing those ideas in front of the largest and most consistent audience in Australia. In a tough business environment, this is an outstanding result for the company and our shareholders.”

The AFR reports TEN’s TV ad revenue fell $100 million year-on-year to $329 million.

“Clearly 2012 was a tough year for TEN,” Network TEN chief sales officer Barry O’Brien told The Australian.

“But based on our client renewals, we are confident our revenue share will grow across 2013.”

6 Comments:

  1. Ah but if you have desirable demographics who are hard to reach, then advertisers will pay more to reach them.

    SBS is currently getting ~$240m/year ($15m of which is earmarked for NITV). They only have 5 minutes of advertising an hour, and it is in large blocks that are easy to skip and a small audience. So they don’t make much money from ads. So per viewer they get much less revenue than Seven. They used to make a enough money to fund stuff like Pizza and Swift & Swift from their ad revenue.

    For comparison the ABC gets more than the total commercial TV ad revenue each year, over 1 billion dollars, by the time you add in all the extra digital TV funding, the extra drama funding, Australia TV funding. It makes makes extra money changing 3 times what JB HI does for DVDs.

  2. Secret Squirrel

    I know Free TV Australia only represents the Seven, Nine, and Ten networks in cap cities but, for a more complete picture of the cap city TV ad market, the figures for SBS should be included.

  3. Ch7 have 40.29% of the ad revenue market!. Yet Terry McCrann from News recently commented in his article that Seven West Media was the most highly geared in debt of the 3 FTA networks now that 9 have sorted their crap. Who would want to own shares in an Australian FTA network? to many egos for my liking!!!!!!

  4. I’m always surprised that Sydney’s share is 33% above Melbourne’s given that the population gap is about 10% & that more Melburnians seem to watch TV.

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