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Ratings Metric Boosts TV Ad Buys

Stock quotes in this article: DIS , NWS , GE , GOOG , YHOO , CBS , TIVO  

TV broadcast networks wrapped up the spring ad selling season with gains after a slow start, thanks in part to an industry shift to commercial ratings from program ratings.

"It was truly a transformational 'upfront,'" says Mike Shaw, president of sales and marketing for ABC networks, a division of Disney (DIS Quote). "The television advertising business just changed by switching to a new metric for measuring audiences. The entire advertising business and everything it was based on just got turned on its head."

Commercial ratings measure viewing during commercial breaks as well as during programming, and after tough negotiations, the industry settled on a metric that includes viewing from TiVo (TIVO Quote) machines and other digital-video recorders for as long as three days after a program airs. ...

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