TVNZ runs out of time for the ads

By IRENE CHAPPLE

Demand for television advertising time is so high that TVNZ is selling slots it usually keeps in reserve.

The reserve time is usually held for advertisers whose campaigns are finalised close to when they buy their slots.

Television advertising revenue was up 11 per cent for the first quarter compared with the same period a year ago.

TVNZ's head of sales, Lauren James, said the opening last week of advertising time for the third quarter produced the highest demand the company had experienced.

She said 15,000 commercials for July were booked in a single day, double the same time last year and 50 per cent up on the previous high of last February.

Advertisers had been unable to get the time-slots they wanted.

Third-quarter demand so exceeded supply that programmes such as The Guardian and ER were overbooked by 20 minutes.

James said TVNZ took the "unprecedented step" of making available time usually held for late bookings.

Media directors say TVNZ and TV3 underestimated the demand, which was triggered by a healthy domestic economy.

It has meant price rises - the average increase for the third quarter is 7 per cent on TV One and 8 per cent on TV2.

That is likely to rise even more for the last quarter of the year, which includes the Rugby World Cup in October and the advertising-heavy pre-Christmas period.

The chairman of the Communication Agencies Association's media committee, Peter Myles, of Colenso BBDO, said the industry believed prices for the final quarter would increase by double-digit percentages.

The price for advertising during Mitre 10 DIY Rescue in the third quarter is up 22 per cent from a year ago, to $11,500 for a 30-second slot.

Myles said such an increase made it difficult to plan media buying for clients.

TVNZ spokesman Glen Sowry said it was always very difficult to hit the "sweet spot" of supply and demand.

"There is always a price pressure point and our challenge is to pitch it at that without losing clients."



Sowry would not indicate any likely increase for the last quarter, but said sales of advertising "packages" around the Rugby World Cup were already healthy.

Last month's offer of $250,000 packages sold out within 10 days, and a $100,000 package has been withdrawn from the market "to cater to demand for the $250,000 packs".

Sowry said TVNZ would not increase its self-imposed 12 1/2 minutes an hour limit on advertising time, despite the rise in demand.

"We are mindful we can't push that."