Networks Set a Record With Advertising Sales : Television: Advance purchases of air time for the 1994-95 season total an estimated $4.4 billion.

The television networks’ fall season doesn’t officially begin until Sept. 19, but it’s already a winner in one crucial department: advertising sales.

No matter who prevails in the ratings when “Frasier” goes against “Home Improvement,” all four broadcast networks are already posting record revenues in terms of advertising dollars spent for TV commercials in prime time for the new season.

“This is the best season ever for the networks in terms of advertising--everybody’s literally selling out everything,” said Bill Croasdale, the executive in charge of buying commercial time on the networks for Western International Media, a media-buying firm.

According to industry estimates, advance sales for the 1994-95 TV season--known as “upfront” advertising buying--totaled a record $4.4 billion for ABC, CBS, NBC and Fox, and demand for the fall season continues to be high. The networks are charging more for commercials sold on a one-shot basis, known as “scatter” sales. A 30-second spot in ABC’s “Home Improvement,” the top-rated show last season, is selling for $500,000 during the scatter season, compared to $350,000 during upfront, industry sources said. A 30-second commercial in NBC’s “Seinfeld” is going for about $450,000 in the scatter market, compared to about $300,000 upfront.

ABC is charging rates in the scatter market that are 35% to 40% higher than upfront, industry executives said, compared to increases of 12% to 15% on CBS and 15% to 20% on both NBC and Fox.

“There’s a huge demand for the remaining” air time for commercials, said Marvin Goldsmith, ABC’s president of sales and marketing, “and we’re about 85% sold out through September of 1995.”

An improved economic outlook is cited by both network and advertising executives as a driving force behind the advertisers’ buying spree.

“The network marketplace usually is a good indicator of the economy four to six months down the line, and there’s a feeling that the economy has turned around,” said Paul Schulman, president of his own media-buying company in New York. “At the same time, the deterioration of the networks’ share of audience has halted, and there’s a renewed interest in the broad reach of broadcast advertising.”

Advertiser-supported cable networks are also seeing increases in ad revenue. Upfront advertising among the top-rated basic-cable networks for the 1994-95 season is expected to exceed $1 billion (compared to $875 million last year), representing the first time basic cable has gone over the $1-billion mark, said Steve Raddock, vice president of creative services for the Cabletelevision Advertising Bureau, an industry organization.

But the dollars are particularly large--and the victory particularly sweet--for the broadcast networks, which have seen cable and syndication take away ad revenue over the past several years.

“After several years of looking to spend less on advertising through cable and syndication, advertisers are spending more on network TV,” said Jon Nesvig, president of advertising sales for Fox Broadcasting. “Automobile manufacturers are spending heavily to introduce new cars, and there are some good category wars brewing out there among fast-food companies, phone services, computers and other products fighting each other for market share.”

Fox exceeded its most optimistic forecasts for NFL football, garnering an estimated $250 million in advertising before Labor Day, according to industry sources, compared to the $395 million it is paying in rights fees per year.

Demand for network air time is so high that CBS even expects to make money on a package of afternoon movies and skating events cobbled together to replace the lost NFL games.

“Prime time is very strong, but we’re also seeing strong demand” for daytime slots, said Joseph Abruzzese, senior vice president for sales at CBS.

Ironically, the crop of new shows this season was considered a bland one, at least according to advertising agency prognosticators who screen and rate series pilots.

“In terms of program development, there was no ‘NYPD Blue’ or ‘Grace Under Fire,’ no new shows that were considered ‘wow’ or breakthrough,” Croasdale said. “The potential new hits are going to be shows that follow strong, established programs.”