Third-quarter 2005 short-form DRTV media billings rise 10 percent: computers, software and home office category increases $36 million.

By: Moftakhar, Shay
Publication: Response
Date: Wednesday, February 1 2006

TNS Media Intelligence's (TNSMI) third-quarter 2005 short-form DRTV numbers reflect a 10-percent gain of $65 million over the same period during 2004. This marks the third consecutive quarter that short-form billings have risen over the previous year's results. The total number of campaigns also

rose over 2004's third quarter by an even 70, pushing the total to 1,214.

SOHO So High

Nine of the 17 TNSMI categories experienced increases in spending compared to 3Q 2004. In terms of dollars, the "Computers, software and home office" category had the highest gain, rebounding from its second-quarter demise of $11.8 million with a 40-percent surge of $36 million in 3Q. "Publishers and book clubs" shared the same percentage gain--a $10.1 million bump for the category.

Percentage-wise, "Multiple category ad" led the way with a 68.9-percent gain of $3.8 million, while the "Automotive and travel" category followed suit with a 62.9-percent gain of $16.6 million. Also notable, was the "Audio supplies and equipment" category's performance, gaining an extra $9.75 million for a 16.8-percent advance.

Among the eight categories that declined, the "Crafts, hobbies, sporting goods and toys" category witnessed the sharpest dollar drop with a $7 million slide (down 15.7 percent). Four other categories slid a moderate $3-4 million dollars, while the remaining three kept losses below $2 million.

Our Dog Spot

Similar to second-quarter results, four of the five outlets showed improvement against 3Q 2004 results. Spot TV was the only dog, with a $4.9 million decrease (9.6 percent). Hispanic Network TV made up for its second-quarter decline with a $12.4 million increase (13 percent). Cable TV led the group in terms of extra dollars spent with $21.7 million. Network TV's $19.8 million leap and syndication's additional $16 million posted percentage increases of 60.5 and 37 respectively.

Ups and Downs of Average Costs

The top 40 campaigns accounted for 69.5 percent ($490.9 million) of the total money spent on short-form DRTV during 3Q 2005, while the top 10 campaigns totaled $283.1 million (40.1 percent). The amount a campaign needed to spend to enter the exclusive top 40 rose by $419,000. The average cost of a campaign increased slightly--3.8 percent or $21,309. However, the average cost a campaign minus the top 40 declined by 8.3 percent--$16,493.

As always, the staff of Response thanks TNS Media Intelligence (TNSMI) for providing this valuable resource and allowing us to analyze and share the results with our subscribers.

Analysis by Shay Moftakhar, Special to Response

Fig. 1 Total Quarterly Short-Form Media Billings

3Q 2004 Short-Form  $640,749,100
3Q 2005 Short-Form  $705,825,100

Note: Table made from bar graph.

Fig. 2 Third-Quarter 2005 Short-Form DRTV Media Distribution

Network TV:            $52,427,800   7.4%
Spot TV:               $46,292,000   6.6%
Hispanic Network TV:  $107,871,700  15.3%
Cable TV:             $439,652,300  62.3%
Syndication:           $59,581,300   8.4%
Total:                $705,825,100

Note: Table made from pie chart.

Fig. 3 Third-Quarter 2005 Short-Form Categorical Distribution

Apparel:                                     $4,561,000
Audio supplies and equipment:               $67,816,000
Automotive and travel:                       $1,472,700
Business:                                   $45,807,300
Collectibles and art:                          $185,300
Computers, software and home office:       $126,060,600
Correspondence schools:                        $614,000
Crafts, hobbies, sporting goods and toys:   $37,610,100
Drug and toiletry:                         $153,784,600
Food and beverage:                           $1,052,800
General:                                    $66,526,800
Home and building:                           $7,517,500
Household, furniture and appliances:        $77,060,900
Lawn and garden:                             $6,245,700
Multiple category ad:                        $9,430,000
Publishers and book clubs:                  $35,518,200
Video supplies and equipment:               $64,561,600
Total:                                     $705,825,100

Note: Table made from bar graph.

Fig. 4 Top 40 Brands for Third-Quarter 2005 Short-Form

Reported Time Period: July 1-Sept. 30, 2005

                                                              TOTAL
                                                              Dollars
BRAND                           CATEGORY                      (000)

 1. HP Computer Products        Computers, software and home   $55,912.7
                                office
 2. Petmed Express              General                        $47,894.8
 3. Ingles Sin Barreras         Video supplies and equipment   $44,739.9
    Various Videos
 4. Liberty Medical Supply      Drug and toiletry              $24,018.2
 5. Dell Various Computers      Computers, software and home   $23,030.5
    Products                    office
 6. Bowflex Exercise Equipment  Crafts, hobbies, sporting      $21,585.6
                                goods and toys
 7. Time-Life Various           Audio supplies and equipment   $20,605.1
    Recordings
 8. Dell Dimension Computer     Computers, software and home   $17,900.5
    Products                    office
 9. Craftmatic/Contour Ind.     Household, furniture and       $13,887.4
                                appliances
10. Colonial Penn Insurance     Business                       $13,515.6
11. CRE-C                       Drug and toiletry              $12,812.0
12. Razor & Tie Various         Audio supplies and equipment   $12,746.2
    Recordings
13. Mobility Products           Drug and toiletry              $12,393.9
    Unlimited
14. Scooter Store               Drug and toiletry              $12,260.1
15. Castalian Music Various     Audio supplies and equipment   $12,040.4
    Recordings
16. Enzyte Drugs                Drug and toiletry              $11,715.0
17. Paquete Desintoxicador      Drug and toiletry              $10,708.3
18. Gerber Life Insurance Co.   Business                        $8,347.8
19. Sharper Image Appliances    Household, furniture and        $8,011.2
                                appliances
20. Gateway Various Computer    Computers, software and home    $7,616.2
    Products                    office
21. Relacore                    Drug and toiletry               $7,475.1
22. New York Times Newspaper    Publishers and book clubs       $6,922.7
    Subscriptions
23. Table-Mate                  Household, furniture and        $5,527.5
                                appliances
24. TVATLAS.COM Various         Audio supplies and equipment    $5,465.7
    Recordings
25. Life Alert Misc.            General                         $5,368.8
26. Floam Toys                  Crafts, hobbies, sporting       $5,216.4
                                goods and toys
27. Mundo De Ingles             Multiple category ad            $5,195.3
28. Hongosan Drugs              Drug and toiletry               $5,172.2
29. Everlife Flashlight         Household, furniture and        $5,151.3
                                appliances
30. Prudentchoice Insurance     Business                        $5,127.8
31. Financing Alternatives      Computers, software and home    $5,077.5
    Computer Products           office
32. Hoveround                   Drug and toiletry               $4,636.4
33. Girls Gone Wild Various     Video supplies and equipment    $4,340.8
    Videos
34. Zoobooks Magazines          Publishers and book clubs       $4,327.3
    Subscriptions
35. Tempur-Pedic Inc.           Household, furniture and        $4,278.4
                                appliances
36. SonyBMG Music Direct        Audio supplies and equipment    $4,193.9
37. HP Compaq NX Computer       Computers, software and home    $4,057.2
    Products                    office
38. HP Photosmart Electronic    Business                        $3,982.3
    Products & Equip.
39. 1-800-CONTACTS              Drug and toiletry               $3,841.3
40. Thyrin-ATC                  Drug and toiletry               $3,777.2
    Total Top 40:                                             $490,876.5

Fig. 5 Third-Quarter 2005 Short-Form Categorical Breakdown: Dollars
Spent by Media Type

Reported Time Period: July 1-Sept. 30, 2005

                              Total         Network TV    Spot TV
Category                      Dollars(000)  Dollars(000)  Dollars(000)

Drug and toiletry             $153,784.6    $12,417.4     $12,892.6
Computers, software and home  $126,060.6    $11,388.3      $9,330.7
  office
Household, furniture and       $77,060.9     $7,093.4      $4,498.0
  appliances
Audio supplies and equipment   $67,816.0    $10,960.6      $1,673.8
General                        $66,526.8       $810.3      $2,532.5
Video supplies and equipment   $64,561.6     $1,863.8      $1,279.0
Business                       $45,807.3     $5,637.8      $4,218.3
Crafts, hobbies, sporting      $37,610.1     $1,541.0        $676.7
  goods and toys
Publishers and book clubs      $35,518.2       $173.2      $6,999.3
Multiple category ad            $9,430.0       $102.7        $129.4
Home and building               $7,517.5       $300.1      $1,373.9
Lawn and garden                 $6,245.7         $4.9        $320.1
Apparel                         $4,561.0        $13.9        $141.6
Automotive and travel           $1,472.7        $99.4         $22.6
Food and beverage               $1,052.8        $21.0         $95.2
Correspondence schools            $614.0            0        $107.6
Collectibles and art              $185.3            0          $0.7
GRAND TOTAL                   $705,825.1    $52,427.8     $46,292.0

                              Hispanic
                              Network TV    Cable TV      Syndication
Category                      Dollars(000)  Dollars(000)  Dollars(000)

Drug and toiletry              $32,868.3     $64,893.3    $30,713.0
Computers, software and home      $343.4     $92,512.9    $12,485.3
  office
Household, furniture and        $3,403.1     $55,205.6     $6,860.8
  appliances
Audio supplies and equipment    $4,731.4     $48,403.9     $2,046.3
General                                0     $61,120.8     $2,063.2
Video supplies and equipment   $47,057.8     $14,237.1       $123.9
Business                            $5.9     $33,980.1     $1,965.2
Crafts, hobbies, sporting              0     $33,102.8     $2,289.6
  goods and toys
Publishers and book clubs       $9,346.0     $18,900.5        $99.2
Multiple category ad            $6,103.3      $2,964.2       $130.4
Home and building                      0      $5,549.1       $294.4
Lawn and garden                        0      $5,567.1       $353.6
Apparel                         $4,012.5        $354.6        $38.4
Automotive and travel                  0       $1350.7            0
Food and beverage                      0        $936.6            0
Correspondence schools                 0        $388.4       $118.0
Collectibles and art                   0        $184.6            0
GRAND TOTAL                   $107,871.7    $439,652.3    $59,581.3

Fig. 6 Total Short-Form DRTV Campaigns

3Q 2004 Short-Form  1,144
3Q 2005 Short-Form  1,214

Note: Table made from bar graph.

Fig. 7 Average Money Spent on a Campaign Based on Total

3Q 2004 Short-Form  $553,835.91
3Q 2005 Short-Form  $560,095.37

Average Money Spent on a Campaign Minus Top 40: $183,090.80

Note: Table made from bar graph.

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