Demand for TV Ad Time Rises

Viacom Inc. and Discovery Communications Inc. said they are seeing increased demand and higher prices for TV commercials as they head into the holiday season, adding to an up-tempo chorus after a brutal year for advertising. After months of pulling back, advertisers may end up spending more money in the holiday season than last year, some ad buyers say. Some of the new spending in the fourth quarter is simply money that had been cut from earlier quarters, however, and may not carry over as new spending next year, ad buyers say. Moreover, price increases for last-minute ads come after TV networks were forced over the summer to accept lower prices for advance commercial sales, in what is known as the "upfront" marketplace. Total television-ad spending in the U.S. is projected to decline 5.1% in 2010, according to Publicis's ZenithOptimedia. Even U.S. cable networks, which have been the most insulated against the downturn, are projected to see spending fall 1% next year.