After a year mired in negative ratings, Network Ten has seen its share of media agency bookings drop from 28.3% in 2011 to 23.5% in 2012, but media agencies haven't written the network off just yet.
According to Standard Media Index (SMI), which only measures media booked through media agency, Ten's share of the commercial free-to-air television market slipped significantly in 2012.
In comparison, Nine's share increased from 33.3% in 2011 to 35.9% in 2012, while Seven was the overall victor, with its share increasing from 38.4% to 40.6% for the year.
According to Aegis Media Pacific executive chairman Harold Mitchell, Ten has suffered from multiple changes and restructures. However, he has argued there is a high chance the network will see a turnaround within the next couple of years.
“In a weaker market, the number one position usually benefits from safety, and so Seven has done well,” Mitchell said. “Ten on the other hand has been undergoing a reconstruction. I would expect them to emerge stronger once that reconstruction has been implemented.
“We're not writing off Ten.”
Meanwhile, GroupM chairman and chief executive John Steedman said the revenue drop was “pretty much in line with the drop in audience share.”
“With anything, the turnaround for Ten won't happen overnight. Much will depends on Ten's programming. With Ten's lineup in 2013, I think the opportunity is there to show some positivity, but it will take time.”
In December, Seven saw its revenue through media agency bookings increase 4.9% year on year to $51 million, while Nine saw a slight decrease of 0.4% to $61 million.
Ten's revenue fell 18.4% to $31 million.
Ten could not be contacted for comment at the time of writing.
Meanwhile, Seven West Media's sales boss Kurt Burnette said of the positive result: “In December, we specifically wanted to grow revenue. There were many revenue initiatives which worked, and that is something we are delighted with.”
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