Nova TV Group will increase the cost of TV advertising by 12% for 2023. “The current economic situation has affected virtually all areas of the economy, not excluding the TV market. Likewise, we are also experiencing rising costs and are therefore forced to partially reflect inflation in advertising prices for next year. The overall increase on a year-on-year basis is 12 per cent,” said CEO and Sales Director, Jan Vlček, to MediaGuru.cz.
The average year-on-year increase in the basic price of CPP represents 4%. By increasing some of the monthly coefficients as well as the footage coefficient, the overall increase reaches the above-mentioned level of 12%. This year, Nova has seen a growing interest in shorter footage, so it is slightly increasing the price of 15-second TV spots. Within its seasonal coefficients, it is also increasing the price in the months with high demand for TV advertising, i.e. in February, June, September and December.
The features of TV Nova’s business policy for 2023 remain unchanged.
“We are continuing the established practice that has proven successful for our clients over the long term. We are a stable and strong business partner for them and we want to continue in this setting and deepen our cooperation,”
Nova allows for combining TV spot advertising with digital advertising as part of using so called other media channels. Clients are provided with discounts for GRP campaigns if they include other media channels in their media mix (as well as if they use sponsoring, product placement or cable channels). “For next year, with a significant year-on-year increase in online investment, we have strengthened the incentive by discounting online campaigns,” says Jan Vlček. The new business policy also includes an incentive for HbbTV advertising spend.
According to its CEO, Nova has prepared an alternative of advertising sales combined with linear TV and VOD services (i.e. Nova.cz), e.g. in the form of electronic GRP, however, it does not expect it to become a mainstay of its business next year.
According to Jan Vlček’s earlier words, the autumn demand for TV advertising was not negatively affected by the macroeconomic development. Nova describes the situation as stable, and before the start of the autumn season, it saw higher interest of advertisers in TV advertising than in the same period last year.
“This year’s spring season was extremely successful and the interest in advertising was higher than in 2021. The autumn on Nova is traditionally very strong, which is already confirmed now and TV is still the most effective medium with the greatest reach for advertisers. Our expectations for next year are therefore very positive,”
says Jan Vlček on the outlook for 2023.