According to TNS survey, gross expenditures on TV ads increased by CZK 117m in July (+11% y/y), to total CZK 1.17bn. In July, TV stations broadcasted 49 more hours of advertisements compared to the same period last year. TV Nova’s ad hours increased by only 16.5 minutes, while its biggest rival, TV Prima’s ad time increased by 48 hours. TV Nova’s share stands at 46.6%, while TV Prima’s at 39.8%.
Our view:
TV stations’ share on TV ads (indicated by GRP points) has stabilized in 2006, although at adverse levels for TV Nova in comparison to year 2005. Summer months are typically very poor on advertising so no changes are expected until 4Q when the main advertising period comes. July’s TV ad expenditures stand at only 45% of TV ad expenditures in October/November. Note that figures from survey are only gross expenditures and doesn’t completely represent real situation when each TV provides substantial discounts and bonuses. As we already informed TV Prima is much more sold out for the rest of the year for significantly discounted prices than TV Nova, which has more capacity to absorb advertisers’ requests.