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Australian TV Execs May Be Able To Raise Advertising Rates Following Ratings Success

TV execs believe "the case for a rise in advertising rates is strengthening" after millions of Australians watched the Australian Football League and National Rugby League grand finals "despite perfect beach weather" and unfavorable draws, according to Darren Davidson of THE AUSTRALIAN. While neither grand final broke records, the Seven and Nine networks "can claim ratings success, with both matches averaging more than 3.5 million viewers, according to preliminary OzTAM audience figures." Advertisers shelled out as much as A$100,000 ($71,700) for a 30-second spot during Saturday afternoon's AFL clash between the West Coast Eagles and Hawthorn, which peaked at 3.9 million viewers on Seven. Nine charged advertisers a "similar amount" as a peak audience of 4.4 million people tuned in to the NRL grand final. And there was "no sign of viewing fatigue during the early hours of Sunday morning" when Fox Sports attracted its highest-ever ratings for a pool match at any Rugby World Cup as the Wallabies knocked England out of its own tournament with a 33-13 ­victory. Huge ratings "banished fears that a congested sporting schedule would dampen interest." It comes as networks "prepare to hit advertisers with huge price hikes" to pay for record-breaking TV deals -- with the average cost of a 30-second TV spot "set to soar by one-third, according to network insiders." The rationale is that live sport is becoming "increasingly valuable as it is best watched live, which means that it can command pricier advertising rates compared to shows that can be watched at any time," when viewers often record them and skip through the commercials (THE AUSTRALIAN, 10/7).

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