2004 Ad Age TV Syndication Report

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2004 Ad Age TV Syndication Report Coversheet of an Online File Download From The News, Feature and Data Web Site of Advertising Age Title of the attached .pdf file: THE AD AGE 2004 TV SYNDICATION REPORT Celebrities Boost Syndication Sales AdAgeSPECIALREPORT 3.8.04 SYNDICATION STARPrime-time ratings may be off, but as SNTA opensPOWER there’s buzz over syndicated TV’s value Download this complete Special Report as a PDF on AdAge.com as it builds on viewers’ need for familiar faces, and marketer need for a sure thing. Page S-4 at QwikFIND aap42k NY-Chi-LA tour Simple advice Talent scout It’s in the timing INSIDE Underappreciated Syndicators heeding Rule Local spotlight gets syndicated Ad placements in syndie fare syndicators hit SNTA show on No. 1: Give women what pickup, ad interest from GM to add opportunities, potential positive notes PAGE S-5 they want PAGE S-9 hometown advertisers PAGE S-12 problems PAGE S-16 ILLUSTRATION BY ISMAEL ROLDAN March 8, 2004 | Advertising Age |S-4 AdAgeSPECIALREPORT SYNDICATION TOP 25 SHOWS IN AD PRICING Syndicated TV shows ranked by ad price. The top five programs of 2003 maintained their positions in 2004. Host of TV superstars boost AVERAGE PRICE RANK PROGRAM SYNDICATOR PER :301 1 Friends W $221,567 2 Seinfeld S 186,632 bullish syndication market 3 Entertainment Tonight P 149,400 4 Everybody Loves Raymond K 124,379 Dominating key dayparts, 5 Will & Grace W 122,784 6 Wheel of Fortune K 82,950 syndicators see it ‘as the 7 The Oprah Winfrey Show K 81,740 8 Jeopardy! K 77,100 best value in TV today’ 9 That ’70s Show T 75,546 By RICHARD LINNETT 10 World Wrestling Ent’ment WWE 63,005 11 King of the Hill T 60,008 yndication will be the savior of 12 Dharma & Greg T 55,986 television, some TV ad executives say. While prime-time network fare 13 Frasier P 54,783 S stumbled this season, losing audience 14 Extra W 50,967 share and some advertiser holds in the second 50,451 quarter, syndication numbers and revenue are 15 Access Hollywood W holding tight, with second-quarter scatter 16 Home Improvement B 43,307 selling well. 17 Becker P 37,963 “Business is up, our ratings have remained 36,871 strong, we dominate key dayparts,” says 18 Dr. Phil K Mitch Burg, president of the Syndicated 19 Hollywood Squares K 34,001 Network Television Association, a group of 20 The West Wing W 31,179 distributors that will preview new programs for advertisers this month in a trifecta of 21 The Practice T 28,641 conferences. Syndicated programs are sold to 22 ER W 28,386 local TV stations by distributors, and are 23 Inside Edition K 28,196 scheduled largely outside of prime time. Most are barter syndication—in other words, they 24 Judge Judy P 28,100 come to TV with the bulk of their advertising 25 Live With Regis & Kelly B 21,530 presold. “Our delivery indices on audience Syndicators: composition are about 50% higher on young B = Walt Disney Co.’s Buena Vista Television Advertising Sales adults than the networks,” Mr. Burg says. K = King World Productions, a division of Viacom’s CBS Enterprises “And if you were to take all of our sitcoms P = Viacom’s Paramount Advertiser Services together, you would outreach any one of the S = Sony Pictures Television individual networks. We have seven of the T = News Corp.’s Twentieth Television top 10 favorite TV personalities in the W = Time Warner’s Warner Bros. Domestic Television Distribution country [including] Oprah, Dr. Phil, Ray WWE = World Wrestling Entertainment Romano, Regis, Ellen DeGeneres and Jennifer Aniston, who will only be available 1. Estimated cost of a 30-second national commercial unit based on Advertising Age survey of media agencies. in syndication next year,” after NBC’s “Friends” ends its network run. That could TALENT WAVE: Ryan Seacrest pulled in big numbers for Britney Spears (top). “Ellen” and “Dr. Phil” also are doing well. apply to Mr. Romano if “Everybody Loves Raymond” doesn’t return for a ninth prime- executives say. Syndicated fare raked in price larger automaker. time season in the fall. increases for the current season that mirrored However, the market giveth and the “Our delivery the double-digit increases in prime-time sales. market can taketh away. Just as syndication VALUABLE CELEBS In overall revenue, syndication climbed 12% benefited from a strong prime-time upfront Advertising Age’s annual survey of indices are 50% to $2.25 billion during the 2003 upfront in 2003, it also may suffer from an anticipated syndication ad pricing confirms the value of period, according to Advertising Age figures. flat buying season in 2004, a result of the poor these performers—the shows of all except higher on young Prime-time programming, meanwhile, rose showing of most new prime-time Ms. DeGeneres appear on Ad Age’s list of the 15% to $9.3 billion. programming that launched this past season. 25 priciest programs in syndication (see chart adults than nets” Typical syndication advertisers include At a recent media conference in New York, at top right). retail, package goods, pharmaceuticals and Irwin Gotlieb, CEO of WPP Group’s media Data released late last month from the Television Distribution; “On-Air With Ryan restaurants. But Mr. Burg says advertisers shop GroupM, predicted the prime-time Television Bureau of Advertising show Seacrest,” from News Corp.’s Twentieth that don’t usually invest in syndication are upfront this year will be down to $9 billion. syndication’s strength. Syndication ad Television; and “Dr. Phil,” from Viacom’s King doing so now. “Syndication is not necessarily going to revenue was up 15.3% in 2003, while World Productions. Highly touted as successes grow significantly or have significant network rose 3.2% and local broadcast was among off-network series (reruns of network BIG AUTO GAINS increases in pricing in the new season,” says down 5.4% (see chart on Page S-17). programs) were Sony Pictures Television’s “Our auto business is up 24%,” he says. Terri McKinzie, assistant media director at The mood at this year’s National “Seinfeld” and Warner’s “Friends.” “Everyone is looking to get the most value for Publicis Groupe’s Starcom USA, Chicago. “I Association of Television Programming But network TV continues to cast a long their dollars, and given our pricing structure don’t know that it will be a negative Executives conference in Las Vegas was shadow over syndication, from its effect on and ratings strength, we are probably the best marketplace this year, but we don’t anticipate generally upbeat (see related story on Page S-5). syndication’s prosperity to programmers value in television today.” any double-digit increases, that’s for sure. It’s Studios hawked first-run success stories with adopting network tactics like staggering the “Most automotive advertisers look at going to be a more moderate marketplace.” strong and growing audience numbers, debuts of new shows. syndication as a back-door approach, pursuing There’s a growing concern in the including “The Ellen DeGeneres Show,” from Syndication rode the coattails of a lucrative it as a local advertising venue for its dealer syndication business that the programming Time Warner’s Warner Bros. Domestic upfront prime-time TV ad market, industry groups,” says an agency media buyer for a See OVERVIEW on Page S-17 March 8, 2004 | Advertising Age |S-5 SNTA bids for marketers’ attention The lag time between the two events Under new chief execs the provides better information on product and clearances, insights on what’s returning, and a syndication associations chance to make a more informed buying decision for September, Mr. Goldstein says. reinvent their conferences But while SNTA is rich with one-on-one conversations about specific program and By JEFFERY D. ZBAR marketing opportunities, he believes NATPE will also remain in the mix for media buyers. elevance. “There is ample justification for both In a word, the Syndicated Network organizations,” he says. Television Association’s conference this SNTA’s conference is “an opportunity to Rweek is as much about being relevant to see as many people as you can,” Mr. Levy its audience as are the efforts of the National says. Moreover, the audiences are looking for Association of Television Programming different takeaway from the SNTA and Executives to revive its own January event. NATPE events, he contends. “It’s not a The prize for both groups is to keep competition. There’s no way NATPE can powerhouse syndication advertisers such as accomplish the same things.” Procter & Gamble Co. and their agencies focused on syndicated TV. VENDOR SETUP CHANGED At the same time, the differences are clear: Despite its renewed energy and panel NATPE looks to clear syndicated shows with discussions, NATPE still has its work cut out TV stations, though vendors also showcase for it, Mr. Levy says. “Rick [Feldman] has to their content for agencies. SNTA, meanwhile, do something there to make it relevant to my aims to sell marketers and their media shops constituents,” he says. “If he makes it relevant on syndicated programming. to my clients and my clients are there, then the How these groups approach the ad side of SPREADING OUT: Mitch whole convention is meaningful to me.” syndication will be crucial to their future. Burg (l.) and Rick Mr. Feldman hopes that in an age of growing NATPE already was grappling with a couple Feldman are new to media outlets and marketing opportunities, their jobs at, big problems last year when SNTA decided to respectively, SNTA NATPE’s relevance is poised to rebound.
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