Ad Age’s Jeanine Poggi writes about CNN’s 2014 ambitions…
There’s plenty of money at stake. According to Kantar Media, CNN brought in $440 million in measured media ad spending from January through October, compared with $411 million in the same period in 2012. By comparison, Fox News brought in $534.5 million and MSNBC tallied $138.3 million from January through October.
Still, media buyers said some clients have pulled back spending or taken the network off media plans temporarily due to CNN’s history of pricing itself at a premium over Fox News and MSNBC. Derek Baine, analyst at SNL Kagan, estimates it cost advertisers $6.23 to reach a thousand viewers (an industry standard known as CPM) on CNN in 2012, compared with $5.02 for Fox News and $4.19 for MSNBC.
But buyers said the network was much “friendlier” on pricing last year, as its bottom-line outlook is blurry. CNN’s operating income was down in 2013, Time Warner execs said on a recent earnings call, and programming investments will likely pressure CNN’s margins in the near-term.