When I found this article on TVNewsday, I knew I had to post it. This might be my favorite article to post this year because it is such a relevant topic to the class. TiVo is working on interactive ads that show up even when you are zapping through commercials. Even though you still have to click to follow them, is this too intrusive? And might this be a productive way to defend the power of DVRs?
By STEPHANIE CLIFFORD
Published: April 22, 2009
The company that attacked television advertising is trying to resuscitate it.
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A TiVo interactive ad. In this one for the Disneynature film “Earth,” a viewer must click to get more information.
TiVo, which allows viewers to digitally record programs and fast-forward through ads, is trying to sell ad spaces on its screens.
It is in a footrace with other companies, including Cablevision, Cox Communications and DirecTV, to offer interactive alternatives to the zapped-through television spots. The ads are called interactive because they ask the viewer to do something — enter in a new channel number, press a button on the remote — to get more information.
“In the last 18 months, the momentum has just lifted,” said Jacqueline Corbelli, the chief executive of BrightLine iTV, which designs interactive ads. “It’s started to become a staple of very large advertisers.”
http://www.nytimes.com/2009/04/23/business/media/23adco.html?_r=1
Thursday, April 23, 2009
Tuesday, April 21, 2009
Is Brand Google in Trouble?
One of the many interesting things I took out of our Guld text was the idea of equity position in a particular market. A brand that holds equity position in a market is the brand that first comes to mind when in need of a product or service. I’m sure we are all familiar with this notion (e.g think “fastfood”=Micky Dee’s; think “bleach”=Clorox; think “furniture”=Ikea)
I’m sure we can all agree that google has global equity position in the search engine market. I think we can liken this to the struggles of any other (local) brand, especially one of equity position in a particular market just on a much smaller scale.
The article talks about the threats the company is facing and the different directions it is being pressured by industry advisors to take.
There are two things I saw that was very interesting:-the idea of a consumer brand versus industry brand. What are the differences? Please expatiate on this as much as you can in your responses.
Also what do you think about Microsoft’s launch this summer? How do you think the competition between the two elephants will fare (in the early, mid, and later stages)?
Here’s the full article:- http://adage.com/digital/article?article_id=136093
Is Brand Google in Trouble?
Media, Rivals Aim to Stir It up for Search Giant, but to Consumers It's Still a Beloved Brand
by Michael Learmonth and Abbey Klaassen Published: April 20, 2009
NEW YORK (AdAge.com) -- A little internal test at the Mountain View, Calif., search giant goes like this: You take Google search results, slap them on a Yahoo search page and ask users which results they like better. Inevitably, Google wins -- even though they're the same results. Such is the power of the Google brand, arguably the company's most important asset.
But after a decade of near-universal love, Google is facing its toughest test. It's still got a great product and a good story but it's big enough that competitors are slinging arrows from all directions. And while it's cultivated a fun, easy and helpful brand persona, its culture is highly data-driven and insular. It's a combination that helped it win Round 1 of the search war, but may make managing Brand Google a whole lot tougher going forward
I’m sure we can all agree that google has global equity position in the search engine market. I think we can liken this to the struggles of any other (local) brand, especially one of equity position in a particular market just on a much smaller scale.
The article talks about the threats the company is facing and the different directions it is being pressured by industry advisors to take.
There are two things I saw that was very interesting:-the idea of a consumer brand versus industry brand. What are the differences? Please expatiate on this as much as you can in your responses.
Also what do you think about Microsoft’s launch this summer? How do you think the competition between the two elephants will fare (in the early, mid, and later stages)?
Here’s the full article:- http://adage.com/digital/article?article_id=136093
Is Brand Google in Trouble?
Media, Rivals Aim to Stir It up for Search Giant, but to Consumers It's Still a Beloved Brand
by Michael Learmonth and Abbey Klaassen Published: April 20, 2009
NEW YORK (AdAge.com) -- A little internal test at the Mountain View, Calif., search giant goes like this: You take Google search results, slap them on a Yahoo search page and ask users which results they like better. Inevitably, Google wins -- even though they're the same results. Such is the power of the Google brand, arguably the company's most important asset.
But after a decade of near-universal love, Google is facing its toughest test. It's still got a great product and a good story but it's big enough that competitors are slinging arrows from all directions. And while it's cultivated a fun, easy and helpful brand persona, its culture is highly data-driven and insular. It's a combination that helped it win Round 1 of the search war, but may make managing Brand Google a whole lot tougher going forward
Monday, April 20, 2009
We've talked about the upfront presentations...for broadcast networks and cable programming services. Here's ABC's response to cable channels pitching their services as better ad values to traditional broadcast networks. (Keep in mind, Disney/ABC owns numerous cable channels.) Here's a network guy defending his turf against cable. Note the stats he cites, illustrating ABC's comparative advantage over cable, refer to channels like TNT and TBS--both general appeal channels, similar to a broadcast network and both owned by TimeWarner. There's nothing in the article about the various ESPN channels or ABC Family or Disney Channel.
Here's the full link:
http://www.tvweek.com/news/2009/04/abcs_upfront_fightin_words.php
Here's the full link:
http://www.tvweek.com/news/2009/04/abcs_upfront_fightin_words.php
TV Week, April 19, 2009 8:00 PM
ABC’s Upfront Fightin’ Words
In Cable vs. Broadcast, Mike Shaw at ABC Likes His Chances
Broadcast is firing back at cable networks that are trying to take a bigger slice of the upfront advertising pie.
Reacting to bold statements from cable executives that advertisers are overpaying when they buy commercials on the broadcast networks—and buyers who predict that money will move away from broadcasters—Mike Shaw, president of ad sales and marketing at ABC, felt the need to state his case.
“It’s no more cable’s year than it was last year,” Mr. Shaw said bluntly. “I’m having a hard time seeing how I’m going to lose money in this marketplace.”
Given the struggling economy, advertisers need to ensure their marketing dollars are working as hard as they can, Mr. Shaw said.Saturday, April 18, 2009
Study Shows TV’s Impact on Consumer Purchasing Behavior
This article explained a study that was conducted to find out how television affects consumer behavior. This ranged from awareness to actually purchasing the product. The results showed that television has the most influence on a consumer's awareness but when it comes to a consumer's purchase, it depends on the category of the product. I think that seems accurate because it is common for people to see products on television for the first time and may become interested in them. However, when it comes to actually purchasing the product there probably won't be as many doing so compared to just becoming aware or interested in the product. The study was very interesting to read since it was just done recently and the percentages were closer than what I expected.
April 15, 2009 7:00 AM
By Jon Lafayette
April 15, 2009 7:00 AM
By Jon Lafayette
With the upfronts just around the corner and the economy in need of stimulation, a new study by the Television Bureau of Advertising offers insights into how advertising affects consumers as they make their way toward purchase decisions.
The report, called “How Media Works: Advertising and the Purchase Funnel,” was conducted by Yankelovich for the TVB to determine the role TV plays as part of a multiplatform environment for advertising.
At a time when economic conditions make it more important than ever to maximize their advertising expenditures to get consumers to purchase their goods, the study examines the role of television advertising in driving consumer actions throughout the purchase decision process; how television interacts with other media platforms and how purchase decisions are made as a result of interactions with media.
http://www.tvweek.com/news/2009/04/study_shows_tvs_impact_on_cons.phpThursday, April 16, 2009
How Web Sparked Obama Win
This article really helped me realize just how much the internet is really affecting our everyday lives. It talks about how because Obama's presidential campaign focused a lot on the reaching people through the internet he was able to attract more voters. Viral videos and blogs were huge in this campaign. I think this article shows just how advertising on the web is becoming the new "in" way to advertise. People are constantly using the internet and it is a great way to bombard them with your product or service. I think it will be interesting to see how advertising is going to change in the future.
How Web Sparked Obama Win
The Obama team's Web savvy made all the difference.
NEW YORK - A Pew survey released late yesterday showed that more than half of all adults in the U.S. used the Web during the 2008 race for the White House for "political purposes," from checking for news to sharing videos or Facebook postings. It also revealed that Obama's backers used the Web far more extensively than McCain's supporters, for everything from planning meetings to donating money.
These are not exactly shocking facts and they do not really do justice to the full impact of the Web in Obama's victory last year.
When the nearly two-year presidential race ended on Nov. 4, 2008, the solid win for Obama no longer seemed a surprise. Going back one year, however -- and finding Hillary Clinton labeled the clear front-runner -- puts the Obama victory in perspective. Joe Scarborough wasn't the only pundit back then to pat Obama on the head for a nice effort and tell him to prepare to get ground up and "spit out" by the unstoppable double-Clinton machine. Instead, Obama, with the help of an unprecedented grassroots funding and organizing effort, battled that machine to a standstill, then knocked out McCain a few months later.
How did that happen? The Democratic insurgent made few poor moves, remained calm while avoiding, or wiping off, the mud thrown at him, and continually surprised the pundits, who overestimated both Clinton and McCain (and Sarah Palin) past the point that most voters abandoned them.
Then there was the Web.
A major party's nomination of an African-American for president, and the Republicans' first selection of a female candidate for vice president, were not the only historic aspects of the 2008 election campaign in the United States. This was also the first national campaign profoundly shaped -- even, at times, dominated -- by the new media, from viral videos and blog rumors that went "mainstream" to startling online fundraising techniques. You might call it Campaign 2.008.
http://www.adweek.com/aw/content_display/news/agency/e3ief6bd78f4bc262dbb38e4349eecd332b?pn=1
The Obama team's Web savvy made all the difference.
NEW YORK - A Pew survey released late yesterday showed that more than half of all adults in the U.S. used the Web during the 2008 race for the White House for "political purposes," from checking for news to sharing videos or Facebook postings. It also revealed that Obama's backers used the Web far more extensively than McCain's supporters, for everything from planning meetings to donating money.
These are not exactly shocking facts and they do not really do justice to the full impact of the Web in Obama's victory last year.
When the nearly two-year presidential race ended on Nov. 4, 2008, the solid win for Obama no longer seemed a surprise. Going back one year, however -- and finding Hillary Clinton labeled the clear front-runner -- puts the Obama victory in perspective. Joe Scarborough wasn't the only pundit back then to pat Obama on the head for a nice effort and tell him to prepare to get ground up and "spit out" by the unstoppable double-Clinton machine. Instead, Obama, with the help of an unprecedented grassroots funding and organizing effort, battled that machine to a standstill, then knocked out McCain a few months later.
How did that happen? The Democratic insurgent made few poor moves, remained calm while avoiding, or wiping off, the mud thrown at him, and continually surprised the pundits, who overestimated both Clinton and McCain (and Sarah Palin) past the point that most voters abandoned them.
Then there was the Web.
A major party's nomination of an African-American for president, and the Republicans' first selection of a female candidate for vice president, were not the only historic aspects of the 2008 election campaign in the United States. This was also the first national campaign profoundly shaped -- even, at times, dominated -- by the new media, from viral videos and blog rumors that went "mainstream" to startling online fundraising techniques. You might call it Campaign 2.008.
http://www.adweek.com/aw/content_display/news/agency/e3ief6bd78f4bc262dbb38e4349eecd332b?pn=1
It's all about inventory... As we've talked about, local news builds a station's community identity and it gives the station 100% of the available commercial inventory for sale to advertisers. Here's an article from Bloomberg.com with confirmation and further explanation.
Of course, in a media saturated world, how many newscasts can a market support? Especially as we see viewers/consumers access news online and through mobile devices. There's added pressure for stations to build their websites. If they don't do this, someone else will.
Click the link for the full read.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aPY4sRZ7ygCQ&refer=home#
U.S. TV Stations Attract More Viewers With News Than ‘Seinfeld’
By Andy Fixmer
Of course, in a media saturated world, how many newscasts can a market support? Especially as we see viewers/consumers access news online and through mobile devices. There's added pressure for stations to build their websites. If they don't do this, someone else will.
Click the link for the full read.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aPY4sRZ7ygCQ&refer=home#
U.S. TV Stations Attract More Viewers With News Than ‘Seinfeld’
By Andy Fixmer
April 16 (Bloomberg) -- Instead of paying for reruns of “Seinfeld” at 11 p.m. and “Access Hollywood” at 4:30 a.m., News Corp.’s WJBK-TV in Detroit decided to air more local news.
Since making the changes last year, the Fox station’s late- night news is attracting 65 percent more viewers ages 18 to 49, those most sought by marketers, according to Nielsen Co. data. The morning newscast is up 33 percent.
Monday, April 13, 2009
CBS wins Friday on a night of originals
Hey guys...this is a real short article but I always find it interesting to see how the networks stack up against one another. It usually doesn't match up to what I would expect, so I like to see what's out there!
Network averages a 2.2 rating in adults 18-49
By Abigail Azote
Apr 13, 2009
A night of original programming delivered a win for CBS on Friday among viewers 18-49, according to Nielsen overnights. CBS wrapped the night with a 2.2 average overnight rating and 7 share.
http://www.medialifemagazine.com/artman2/publish/Overnights_50/CBS_wins_Friday_on_a_night_of_originals.asp
Network averages a 2.2 rating in adults 18-49
By Abigail Azote
Apr 13, 2009
A night of original programming delivered a win for CBS on Friday among viewers 18-49, according to Nielsen overnights. CBS wrapped the night with a 2.2 average overnight rating and 7 share.
http://www.medialifemagazine.com/artman2/publish/Overnights_50/CBS_wins_Friday_on_a_night_of_originals.asp
Friday, April 10, 2009
An Ad Costs How Much??
The prices for Super Bowl ads always appear in news copy and this sometimes creates a false impression about ad prices. Forbes reports that ad pricing depends not only on the size of the audience but also the kinds of eyeballs who are watching the show. (Consider the audience for Hereos on NBC. The show's audience is now 2 million viewers smaller--it's in 59th place among viewers--for advertisers, the show attracts some of the right viewers and still generates some of the most expensive advertising rates.
Read all about it below:
http://www.forbes.com/2009/04/08/television-advertising-american-idol-business-media-tv-moneymakers.html
or http://notlong.com/stats/?nickname=forbes-ad-prices&password=zdt-vrkg
Read all about it below:
http://www.forbes.com/2009/04/08/television-advertising-american-idol-business-media-tv-moneymakers.html
or http://notlong.com/stats/?nickname=forbes-ad-prices&password=zdt-vrkg
Television Advertising
TV's Biggest Moneymakers
Lacey Rose, 04.08.09From American Idol to Grey's Anatomy, a look at the 15 most expensive ad buys in prime time.
In Pictures: TV's Biggest Moneymakers
This time last year, CBS' The Mentalist seemed like just another crime drama in the pipeline. Without A-list talent or a franchise supporting it, advertisers saw little reason to shell out for the show. In fact, a 30-second spot on the freshman series commanded a hardly-impressive $107,000, on average, this season.
Twelve months and 16 million weekly viewers later, high-performing newcomers like The Mentalist--a top-five show in its first year--are poised to see their price tags soar. At the same time, reliable holdovers like News Corp.
Monday, April 6, 2009
NYT Threatens to Shutter Boston Globe
Hey class, I'm lead blogger for the week and I found this article from TV Newsday about the Boston Globe being threatened to shut down. The title of the article shocked me because when I think of big time newspapers, I think of the Boston Globe. Many think that it is just a strategy from the New York Times Co. to help cover some of the $1.1 billion of debt that they have racked up (much in part to the Globe). However, regardless of the outcome, it definitely sends a shock that the newspaper industry could be heading in a bad direction (well isn't all business at this point?) with one of the premiere newspapers in jeopardy. I'm also waiting to hear about any backlash from the people of Boston.
Here's the link: http://www.tvnewsday.com/articles/2009/04/05/daily.1/
Associated Press, Apr 5 2009, 6:44 PM ET
NEW YORK (AP) — When it bought the Boston Globe for a record $1.1 billion in 1993, the New York Times Co. added one of the nation's most acclaimed and profitable newspapers to its empire.
But analysts say the 137-year-old Globe has been a money-loser in recent years, and the Times, now $1.1 billion in debt, is threatening to shut down Boston's pre-eminent paper unless it gets $20 million in union concessions.
Here's the link: http://www.tvnewsday.com/articles/2009/04/05/daily.1/
Associated Press, Apr 5 2009, 6:44 PM ET
NEW YORK (AP) — When it bought the Boston Globe for a record $1.1 billion in 1993, the New York Times Co. added one of the nation's most acclaimed and profitable newspapers to its empire.
But analysts say the 137-year-old Globe has been a money-loser in recent years, and the Times, now $1.1 billion in debt, is threatening to shut down Boston's pre-eminent paper unless it gets $20 million in union concessions.
Sunday, April 5, 2009
WHDH-TV snubs Leno as 10 p.m. program
As we start to talk about Local TV, I came across an article of an estranged affiliate-network relationship. WHDH-TV, the NBC affiliate in Boston, plans to preempt Jay Leno's upcoming news talk program with local news. Jay Leno's program is scheduled to air at 10 pm (9 Central), the same time that an hour local news show is being planned for WHDH. The NBC network is not happy and could ultimately remove WHDH's affiliation. WHDH's station manager cites higher potential ratings as reasons to preempt Jay Leno. However, NBC views their relationship with WHDH as contractual, and seems pretty determined to not let a rebel affiliate in a major market affect them. I think WHDH is making a name for them self, which may ultimately increase ratings. However, its hard to see WHDH coming out ahead and their rating could easily decline in the fall.
The link to the Boston Globe article of WHDH's plans:
http://www.boston.com/ae/tv/articles/2009/04/03/whdh_tv_snubs_leno_as_10_pm_program/
An article of NBC's reaction to WHDH:
http://www.thrfeed.com/2009/04/nbc-leno-will-air-in-boston-one-way-or-another.html
The link to the Boston Globe article of WHDH's plans:
http://www.boston.com/ae/tv/articles/2009/04/03/whdh_tv_snubs_leno_as_10_pm_program/
An article of NBC's reaction to WHDH:
http://www.thrfeed.com/2009/04/nbc-leno-will-air-in-boston-one-way-or-another.html
Thursday, April 2, 2009
Disney/ABC CEO Robert Iger was the keynote speaker at the annual Cable TV Show--the cable industry's verion of NAB and NATPE. Part of the article is shown below but perhaps the most interesting sentence is this: "Iger said he was open to the Anywhere, Anytime Any device concept of making content available over multiple devices, including the computer, but said that authentication was key to the strategy." As I interpret this, this device could be a television set or a computer or a smart phone...and if it's anytime, anywhere it probably won't require a local broadcaster to distribute the signal.
http://www.multichannel.com/article/191166-Cable_Show_2009_Iger_To_Cable_Show_Me_The_Online_Model.php
http://www.multichannel.com/article/191166-Cable_Show_2009_Iger_To_Cable_Show_Me_The_Online_Model.php
Cable Show 2009: Iger To Cable: Show Me The Online Model
Disney CEO Says 'TV Everywhere' Subscription Model "Difficult to Embrace"
Mike Farrell -- Multichannel News, 4/2/2009 10:09:34 AM MT
Washington — Walt Disney Co. CEO Robert Iger told the cable industry in a roundabout way Thursday that it must find an online model that works sufficiently for both programmers and distributors, appearing to dismiss a subscription model proposal, TV Everywhere," made earlier this year by Time Warner chairman and CEO Jeff Bewkes.
In his keynote speech at Cable Show '09 open general session here Thursday, Iger praised the cable industry, but also warned that nitpicking on the issue of online video could be devastating for the industry.
"Let me state the obvious: Cable television is vitally important to our company, Iger said. "It provides us with a crucial connection with consumers. And it is a critical creative engine that drives value across a number of our businesses and across markets and territories around the world."
But he added that the prevalence of online video cannot be ignored.
Monday, March 30, 2009
In Milwaukee, HBO on the Laptop, Only For Subscribers
More often nowadays it seems as if new technology is being developed to change the way people recieve information and entertainment. Some of these new technologies are helpful and others are just new ways of looking at doing things for future reference. I think that this new way of downloading television material on to personal computers is a great idea. Today more and more people whether its for business or pleasure are using they're computers more and more not just adults but kids as well. I think what Time Warner is presenting here will give the paying customer more variety of what content they want to view. I am a bit curious about the idea of shows deleting after a certain experation date. I think if it is possible they should try and make the service more like a DVR as well. That would allow subscribers to save a show they really like and record and fast forward to they're favorite spots within the shows they download. Along with the type of downloaded content that is available I would like to know how companies if at all would advertise during these types of shows downloaded? Read the article below and comment on what you think!
March 30, 2009, 12:05 am — Updated: 12:06 am -->
In Milwaukee, HBO on the Laptop, Only For Subscribers
By Brian Stelter
In Monday’s New York Times, Brad Stone and I report on tests by cable and satellite companies to create a subscriber model for TV viewing on the Internet. Worried that the proliferation of free video on the Web, the distributors want to make available an online library of TV episodes, but only to customers who pay for a cable or satellite subscription.
In Milwaukee, Time Warner Cable is already testing a similar service. Through the one-year-old HBO on Broadband product, cable customers who already pay for HBO are able to log in to a software program and select which TV shows and films they want to download. The Internet content mostly mirrors what HBO makes available through its cable video-on-demand platform; shows and films rotate in and out of availability, and they are automatically deleted from the computer when they expire.
Kurt S. Bocksenbaum, 45, subscribed to HBO solely because he wanted to use the broadband service. Now he downloads programs like “Big Love” directly to his computer. “I hope that this is extended to other channels,” he said.
Customers are allowed to set up five accounts for each household. Mr. Bocksenbaum’s daughter Elizabeth, age 4, has already learned how to download the animated series “I Spy” onto her child-sized laptop. When HBO on Broadband was announced last year, The Times reported:
While most networks have embraced browser-based streaming video, HBO’s programming is to be watched in a separate computer application that downloads shows to the hard drive. It may face several hurdles: the program is available only on Windows PCs initially; the downloaded content cannot yet be transferred to portable devices; and the content expires four weeks after being downloaded.
The application has some innovative features. It allows users to set up accounts for each family member, and the attached parental controls can block violent or explicit content. It also lets users watch the live televised version of HBO, a feature that may appeal to subscribers who are away from home.
Some HBO customers in Wisconsin say they especially like the download functionality. Rebecca Lavoy, 33, started using the service late last summer to entertain her children when they spend weekends at a cabin in Illinois.
“On rainy days we had nothing for our kids to watch except the same DVDs, and they were sort of bouncing off the walls,” she said. With the broadband service, “we could download a couple shows for the kids and a couple shows for us.”
Time Warner Cable said it did not have a reliable estimate of how many customers are using HBO on Broadband in Milwaukee. Still, the service could be a harbinger of TV’s future on the Web; Time Warner expects to begin broader trials of an authentication system for online TV viewing by this summer.
March 30, 2009, 12:05 am — Updated: 12:06 am -->
In Milwaukee, HBO on the Laptop, Only For Subscribers
By Brian Stelter
In Monday’s New York Times, Brad Stone and I report on tests by cable and satellite companies to create a subscriber model for TV viewing on the Internet. Worried that the proliferation of free video on the Web, the distributors want to make available an online library of TV episodes, but only to customers who pay for a cable or satellite subscription.
In Milwaukee, Time Warner Cable is already testing a similar service. Through the one-year-old HBO on Broadband product, cable customers who already pay for HBO are able to log in to a software program and select which TV shows and films they want to download. The Internet content mostly mirrors what HBO makes available through its cable video-on-demand platform; shows and films rotate in and out of availability, and they are automatically deleted from the computer when they expire.
Kurt S. Bocksenbaum, 45, subscribed to HBO solely because he wanted to use the broadband service. Now he downloads programs like “Big Love” directly to his computer. “I hope that this is extended to other channels,” he said.
Customers are allowed to set up five accounts for each household. Mr. Bocksenbaum’s daughter Elizabeth, age 4, has already learned how to download the animated series “I Spy” onto her child-sized laptop. When HBO on Broadband was announced last year, The Times reported:
While most networks have embraced browser-based streaming video, HBO’s programming is to be watched in a separate computer application that downloads shows to the hard drive. It may face several hurdles: the program is available only on Windows PCs initially; the downloaded content cannot yet be transferred to portable devices; and the content expires four weeks after being downloaded.
The application has some innovative features. It allows users to set up accounts for each family member, and the attached parental controls can block violent or explicit content. It also lets users watch the live televised version of HBO, a feature that may appeal to subscribers who are away from home.
Some HBO customers in Wisconsin say they especially like the download functionality. Rebecca Lavoy, 33, started using the service late last summer to entertain her children when they spend weekends at a cabin in Illinois.
“On rainy days we had nothing for our kids to watch except the same DVDs, and they were sort of bouncing off the walls,” she said. With the broadband service, “we could download a couple shows for the kids and a couple shows for us.”
Time Warner Cable said it did not have a reliable estimate of how many customers are using HBO on Broadband in Milwaukee. Still, the service could be a harbinger of TV’s future on the Web; Time Warner expects to begin broader trials of an authentication system for online TV viewing by this summer.
Thursday, March 26, 2009
Young Boomers Watch 9.5 Hours of Video per Day; TV Still on Top
When I was looking at tvweek's website this article stood out. The headline alone was astonishing. I found it interesting that people from the ages of 45-54 watch more than 9 1/2 hours of television per day while other age groups average about 8 1/2. That seems like so much tv for one day but when I was thinking about it I thought of when I watch a game on tv. By the time the game is over its three hours later. Putting it in terms of what you watch doesn't seem as bad as when you break it down to hours. The article also discusses how we are exposed to 72 minutes of television advertising. Since the research showed that 99% of video consumption is watched on traditional TVs and even 98% of 18-24 year olds' video consumption is seen on televisions. It sure sounds to me like television isn't going anywhere anytime soon.
March 26, 2009 10:35 AM
Live viewing on television still is the dominant form of video consumption in the United States.
A new study conducted by Ball State University’s Center for Media Design and Sequent Partners for the Nielsen-funded Council for Research Excellence, found that 99% of video consumption on televisions, the Web and mobile is on traditional TVs. Even among adults 18 to 24, 98% of video is seen on televisions.
The figures confirm numbers generated by other forms of measurement by Nielsen.
Live TV was the top way video was consumed, followed by DVDs, with digital video recorders third.
http://www.tvweek.com/news/2009/03/young_boomers_watch_95_hours_o.php
Monday, March 23, 2009
Solid early bounce for March Madness
Welcome back from spring break everybody! Thought I would start the action with a post from TV Newsday regarding the NCAA march madness and the improvement of ratings. I found it interesting that the ratings were up 9% from last year, and that is only in the opening round. My question is to whether this has driven up the price of advertising during the airing of the games. From the people I know, there are ALOT of people who watch these games, and since CBS is the only station that airs them, people don't change the channels as much either. I have noticed that Vitamin Water is a big advertiser this year as I see their logo everywhere both on the court and in commercials, but I wonder about everyone else and what the action is like in the sales aspects of this
Opening round of games is up 9 percent over last year
By Toni Fitzgerald
Mar 23, 2009
The first round of the NCAA men’s basketball tournament may have been light on upsets, with virtually all the high seeds prevailing easily, but it was heavy on viewers.
Thursday’s opening-round coverage on CBS was up 9 percent compared to last year, according to Nielsen overnights, from an average 4.3 household rating and 10 share to a 4.7/10.
All but one of the day’s four windows of games saw improvement versus 2008, with the second afternoon telecast up 0.4, to a 3.7, the second-highest rating in the past four years, and the two primetime windows both up 0.5.
That wasn’t the only area where CBS saw year-to-year improvements. Its March Madness on Demand online platform recorded its best-ever opening-day traffic as well.
The site’s video player drew 2.7 million unique visitors, up 56 percent versus last year. Those visitors watched 2.8 million hours of live video and audio streaming, 65 percent better than last year.
The TV and online growth is being attributed to a number of factors. The down economy certainly means more people are looking for cheap entertainment, and the NCAA tourney is free both online and off.
Too, an unusually large number of big-name schools, with huge alumni fan bases, made the tournament this year, cutting down on the potential small-school Cinderellas, who received very few bids. That surely drew in viewers for squads like Michigan who hadn’t made NCAAs in a few years.
Also, the competition certainly isn’t what it used to be on Thursday night. Though NCAAs faced an original episode of “Grey’s Anatomy” on ABC, that show’s ratings have plummeted since last year.
Meanwhile, online, a growing number of people have learned about the free CBS games, and an increasing number of surfers have the broadband internet capabilities to watch those games.
Plus, CBS partnered with literally hundreds of web and mobile sites this year to promote the game, including Facebook, YouTube, ESPN.com and more.
Opening round of games is up 9 percent over last year
By Toni Fitzgerald
Mar 23, 2009
The first round of the NCAA men’s basketball tournament may have been light on upsets, with virtually all the high seeds prevailing easily, but it was heavy on viewers.
Thursday’s opening-round coverage on CBS was up 9 percent compared to last year, according to Nielsen overnights, from an average 4.3 household rating and 10 share to a 4.7/10.
All but one of the day’s four windows of games saw improvement versus 2008, with the second afternoon telecast up 0.4, to a 3.7, the second-highest rating in the past four years, and the two primetime windows both up 0.5.
That wasn’t the only area where CBS saw year-to-year improvements. Its March Madness on Demand online platform recorded its best-ever opening-day traffic as well.
The site’s video player drew 2.7 million unique visitors, up 56 percent versus last year. Those visitors watched 2.8 million hours of live video and audio streaming, 65 percent better than last year.
The TV and online growth is being attributed to a number of factors. The down economy certainly means more people are looking for cheap entertainment, and the NCAA tourney is free both online and off.
Too, an unusually large number of big-name schools, with huge alumni fan bases, made the tournament this year, cutting down on the potential small-school Cinderellas, who received very few bids. That surely drew in viewers for squads like Michigan who hadn’t made NCAAs in a few years.
Also, the competition certainly isn’t what it used to be on Thursday night. Though NCAAs faced an original episode of “Grey’s Anatomy” on ABC, that show’s ratings have plummeted since last year.
Meanwhile, online, a growing number of people have learned about the free CBS games, and an increasing number of surfers have the broadband internet capabilities to watch those games.
Plus, CBS partnered with literally hundreds of web and mobile sites this year to promote the game, including Facebook, YouTube, ESPN.com and more.
Tuesday, March 17, 2009
Here's an example of the revenue situation most stations are facing. Revenue is UP but it's mostly the result of political advertising, events that likely won't be repeated for four more years. Local advertising is down 17%; Internet advertising is up 21% but contributes a smaller slice to the revenue pie....$3.2 million vs $45 million from depressed local advertising.
http://www.tvnewsday.com/articles/2009/03/16/daily.5/
http://www.tvnewsday.com/articles/2009/03/16/daily.5/
Gray Posts 12% Gain in 4Q Revenue
TVNEWSDAY, Mar 16 2009, 7:47 AM ET
Gray Television Inc. today announced fourth quarter results for the period ended Dec. 31, 2008. Its total net revenue increased $10.5 million, or 12%, to $94.8 million due primarily to increased political and internet advertising revenue, partially offset by decreased local and national advertising revenue in the fourth quarter of 2008.
- Political advertising revenue increased $24.7 million, or 942%, to $27.4 million.
- Internet advertising revenue increased $600,000, or 21%, to $3.2 million.
- Local advertising revenue decreased $9.2 million, or 17%, to $45 million.
- National advertising revenue decreased $5.1 million, or 24%, to $16.1 million.
Thursday, March 12, 2009
Local Media Decline
We talked this morning about the importance of advertising sales to pay the bills for any media company. Without advertising, few media companies could operate unless government funded or funded through receiver license fees. Even then, channel selection would be limited. Who wants to revert to a media system with only three or four government funded media channels?
This article, from Multichannel News, discusses the anticipated decline in local media advertising over the next few years. Local advertising will decline by about $11 BILLION by 2013. Worth thinking about is that advertising/marketing expenditures won't necessarily disappear--they may instead move to new media forms/formats. Click the link to read the full article:
http://www.multichannel.com/article/189663-Study_Local_Media_Declines_for_Next_Few_Years.php?nid=2381&source=title&rid=5248892
This article, from Multichannel News, discusses the anticipated decline in local media advertising over the next few years. Local advertising will decline by about $11 BILLION by 2013. Worth thinking about is that advertising/marketing expenditures won't necessarily disappear--they may instead move to new media forms/formats. Click the link to read the full article:
http://www.multichannel.com/article/189663-Study_Local_Media_Declines_for_Next_Few_Years.php?nid=2381&source=title&rid=5248892
Study: Local Media Declines for Next Few Years
K.C. Neel -- Multichannel News, 3/9/2009 1:00:57 PM MT
The weak economic environment should curtail overall local advertising spending in coming years, according to the U.S. Local Media Annual Forecast (2008-2013) study by BIA Advisory Services and its Kelsey Group division.
Local ad revenue will decline from $155.3 billion in 2008 to $144.4 billion by 2013, according to the report, which represents a negative compounded annual growth rate. Of all the local ad revenue segments, only interactive is expected to grow over the next five-year period, Kelsey Group reported. All other local media will experience marginal to rapid declines in the next 18 to 36 months, BIA Advisory Services president and CEO Tom Buono said in a statement. A small number of traditional media will rebound with a revived economy beginning in 2011, though most traditional media will continue to decline, albeit at a slower pace.
"By the end of the forecast period, the overall size of the local advertising market will be considerably smaller than it was at the end of 2008," Buono said. "As the shift to online accelerates, and the demand for accountability metrics grows, there is an increased urgency for traditional media companies to develop and embrace new business models that incorporate digital strategies in order to drive business over the next decade."
Different Points of View
Broadcast systems vary around the world--even between the U.S. and Western European countries. Italy has JUST approved product placement in programs; the UK has said NO to product placement on it's commercial network ITV.
Product placement is one more source of non-traditional revenue. You're more likely to see it generate high revenue numbers in network shows--money that the show producer may get a slice of as well as the network. The FCC has looked with a wary eye over the years about product placement on U.S. shows. Is this practice ethical? Quick answer: Yes. And, legal too--in the U.S. But, how about the leverage fee mentioned in the article? Legal--yes...ethical--yes but at what point does it become questionable? "Questionable" is the polite word we use for unethical.
Here's the link: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=102029
Product placement is one more source of non-traditional revenue. You're more likely to see it generate high revenue numbers in network shows--money that the show producer may get a slice of as well as the network. The FCC has looked with a wary eye over the years about product placement on U.S. shows. Is this practice ethical? Quick answer: Yes. And, legal too--in the U.S. But, how about the leverage fee mentioned in the article? Legal--yes...ethical--yes but at what point does it become questionable? "Questionable" is the polite word we use for unethical.
Here's the link: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=102029
| TV Watch Branded TV In Europe: Going In Different Directions |
| Wayne Friedman, Mar 12, 2009 11:45 AM |
In Europe, branded entertainment is considered both a good and bad thing. |
Monday, March 9, 2009
A Bright Light in the Failing Economy
We have all been reading and hearing about how television stations around the country are filing for bankruptcy and have to be bought by banks. We have also been hearing and reading about local advertising on the outs and stations losing money hand over foot. But there is one place where the television stations are doing just fine, even great.
MARKET SHARE BY ARTHUR GREENWALD
Making More News and Sales in Savannah
TVNEWSDAY, Mar 9 2009, 2:51 PM ET
Just when networks and station groups are closing down news bureaus and entire newscasts, the "Little Stations That Could" — New Vision's duopoly in Savannah, Georgia (DMA 96) — are busy expanding their turf. They just opened a combined sales and news bureau in the fastest-growing part of their DMA...
Full Article: http://www.tvnewsday.com/articles/2009/03/09/daily.5/
These stations are thriving in one of the fastest growing areas in the country. They are expanding, getting new equipment, and learning how to have a better business model. It talks about having a more permanent staff, and a better working environment. In the article it discusses how if you have a standard that you must uphold, business will come to you. They discuss how if you air stories about local events, and places in that area than those businesses will want to advertise with you. Although this town and it's stations seem to be almost an annomly in today's market. It is good to know that not everything is going downhill.
How PPM Could Rescue Radio
ROI modeling requires the better audience measurement system
March 9, 2009
"The article talks about a few different things all at once, so hopefully you do not get distracted.
To start off, it discusses how the Portable People Meter (PPM) could save radio a lot of money, since people do not have to depend on diary (memory) recall at the end of the day. However, I also found an article from last year that sheds light on another angle of the PPM issue:- http://www.nydailynews.com/entertainment/tv/2008/07/15/2008-07-15_on_the_radio_is_ppm_accurate.html Also, apparently, advertisers are no longer depending on such measurements like CPMs but these days, are more interested in consumers’ direct response. As such, advertisers rely on the Marketing Mix Modeling. MMM focuses on direct “advertising-delivered profit.”
Since more often than not diary recalls tend to exaggerate with a bias toward leading stations, MMM together with PPM will help smaller stations because it will help show advertisers that they do have more listeners and hence show the relationship between their advertising and delivered profit. The combo will simply help to level out the playing field."
I'm not one to worry about the distant future. Remembering to pick up my laundry is challenge enough. Then Steven Spielberg casually mentioned civilization's inevitable move from a carbon to silicon base-his matter-of-fact way of saying when robots take over the Earth. By then, data is not only the new creative, he is the new creative director.
Man vs. Machine: There are many things machines do far better than people. In media, the robotic radio PPM compared to the all-too-human diary is a good example. The vagaries of the diary measurement may be costing radio millions each year in a simple but hidden way. Diary reporting is no longer adequate for how audience estimates are used to select media.
Marketing Mix Modeling: Today, many advertisers leap over conventional measurements like audience, demos and CPMs, and go directly to consumer response to make their media decisions. The tool of choice is complex Marketing Mix Modeling. Advertisers take the pieces of last year's brand marketing spend and match that to brand sales to see how they track.
For media, the deciding measure is its contribution to total brand sales, minus the cost of goods, divided by the cost of the medium. It is the equivalent of advertising-delivered profit before taxes or "Payback." You can't argue with the goal or the model. Both seem to work. It's the marketing input data that need attention, especially the radio data.
Why Radio Should Win: Years of marketing mix studies have uncovered two planning truths. All marketing expenditures show diminishing marginal response. Each additional dollar spent in a medium usually pays back less than the one before. This argues against media concentration and supports media mix. The second truth is each week added to a schedule usually pays back more than the week before. This recommends continuous advertising.
Full article:- http://www.adweek.com/aw/content_display/community/columns/other-columns/e3ia76af7fdae63c0c14db9dd68abc3454d
HBO Opens Syndie Sales
This article is very interesting to me because of the fact that this is unchartered territory for HBO, with the exception of Sex and the City. I find this to be a very untapped resource for them, because so few people get to see HBO shows unless they subscribe. I personally watch the shows on DVD, because I typically research a show and then buy a trial season, which leads to more if I am impressed. However, with a phenomenon like this, I can sample shows and know ahead of time whether I want to buy them! Another issue I wondered about was whether this would hurt the number of subscriptions for HBO, but since shows need so many episodes to run in syndication, it should have little effect at all. Look for this to start happening more often...
'Entourage', 'Curb Your Enthusiasm' for 2010
By Melissa Grego -- Broadcasting & Cable, 3/9/2009 12:00:00 AM MT
HBO has a question for cable networks and stations about three comedies, including Entourage: Is that something you might be interested in?
By the end of March, the pay-TV network will be in the marketplace selling syndication runs for Entourage, Curb Your Enthusiasm and Sex and the City.
Executives have already held meetings with buyers about the off-HBO runs of Entourage and Curb. By the end of this month, they will start making formal sales presentations, says Scott Carlin, HBO president of domestic distribution. Carlin's team is also talking to stations about the second broadcast syndication cycle for Sex and the City.
http://www.broadcastingcable.com/article/189606-HBO_Opens_Syndie_Sales.php
'Entourage', 'Curb Your Enthusiasm' for 2010
By Melissa Grego -- Broadcasting & Cable, 3/9/2009 12:00:00 AM MT
HBO has a question for cable networks and stations about three comedies, including Entourage: Is that something you might be interested in?
By the end of March, the pay-TV network will be in the marketplace selling syndication runs for Entourage, Curb Your Enthusiasm and Sex and the City.
Executives have already held meetings with buyers about the off-HBO runs of Entourage and Curb. By the end of this month, they will start making formal sales presentations, says Scott Carlin, HBO president of domestic distribution. Carlin's team is also talking to stations about the second broadcast syndication cycle for Sex and the City.
http://www.broadcastingcable.com/article/189606-HBO_Opens_Syndie_Sales.php
Network, National and Local/Direct are the three types of television advertising we've talked about. Upfront refers to ad buys on primetime programming--typically broadcast network is talked about but cable, especially firstrun cable programming is also part of the upfront.
Television advertising is still in demand. TV is the mac 'n cheese of media comfort food. People continue to watch television but ad buyers may still have the upper hand as the tight economy restricts spending and, as this article reports, buyers want flexibility in their purchases. For broadcast and cable networks, it's, "No good deed goes unpunished." If they rollover and allow too much flexibility, what will this mean in the coming years, especially as we see the media marketplace evolve?
Buyers Demand Flexibility Heading Into Upfronts
The networks, of course, aren’t conceding much at this point. CBS CEO Leslie Moonves, however, is the only network executive so far this year to publicly predict that pricing—at least at his network—will be up this year. He also indicated last week that it is possible CBS will sell less inventory upfront this year.
Sellers at other networks say it’s anybody’s guess at this point how pricing will shape up in this year’s upfront market, which is still at least three months away. And maybe longer if buyers come to the table with unrealistic expectations, sellers said.
Click the link for the full article: http://buyerflex.notlong.com
Television advertising is still in demand. TV is the mac 'n cheese of media comfort food. People continue to watch television but ad buyers may still have the upper hand as the tight economy restricts spending and, as this article reports, buyers want flexibility in their purchases. For broadcast and cable networks, it's, "No good deed goes unpunished." If they rollover and allow too much flexibility, what will this mean in the coming years, especially as we see the media marketplace evolve?
Buyers Demand Flexibility Heading Into Upfronts
Networks head into the upfront facing steep dropoffs. What agencies say they need to do
March 8, 2009
Faced with the worst economy in a generation, and with ad budgets down amid predictions they will sink further as the year progresses, there is little disagreement among ad buyers that they have a lot of leverage heading into this year’s upfront television marketplace. And they will be seeking concessions including price rollbacks and significantly greater flexibility on terms and options to pull out of or reduce spending commitments made in the upfront, given the uncertainty of the economy.The networks, of course, aren’t conceding much at this point. CBS CEO Leslie Moonves, however, is the only network executive so far this year to publicly predict that pricing—at least at his network—will be up this year. He also indicated last week that it is possible CBS will sell less inventory upfront this year.
Sellers at other networks say it’s anybody’s guess at this point how pricing will shape up in this year’s upfront market, which is still at least three months away. And maybe longer if buyers come to the table with unrealistic expectations, sellers said.
Click the link for the full article: http://buyerflex.notlong.com
Wednesday, March 4, 2009
Drinking the Kool-Aid
TV Week plugs Daisy Whitney's New Media Minute--a media tech video podcast
--each week. I loved the gallows humor of this week's story. (See below.) It raises an interesting point as to whether Mobile TV can/will take off in a tight economy where the data suggests that people are watching more regular TV. Below the headline is the link for the NMM. If the mobile TV does emerge, there will be ad sales and production jobs. Let's hope it does.... Have a glass full of Kool-Aid.
http://www.tvweek.com/news/2009/03/video_daisys_bold_call_on_mobi.php
--each week. I loved the gallows humor of this week's story. (See below.) It raises an interesting point as to whether Mobile TV can/will take off in a tight economy where the data suggests that people are watching more regular TV. Below the headline is the link for the NMM. If the mobile TV does emerge, there will be ad sales and production jobs. Let's hope it does.... Have a glass full of Kool-Aid.
TV WEEK News
March 3, 2009 1:21 PM
Video: Daisy’s Bold Call on Mobile TV
TelevisionWeek reporter Daisy Whitney has been drinking the mobile video Kool-Aid and she tells you why in this week’s New Media Minute.
http://www.tvweek.com/news/2009/03/video_daisys_bold_call_on_mobi.php
Marketers Cheer Tiger Woods' Return
Hey Class,
It’s Aaron Friedman, one of the lead bloggers for this week. As we have been looking at TV ratings lately, I found a Wall Street Journal article from last week about how one person can single-handedly having an impact on TV ratings and marketing for an industry. That person is Tiger Woods, one of the world’s most famous athletes, who has returned to professional competition this past week following a major injury that sidelined him. As Suzanne Vranica notes, Nielsen Media Research tracked that the average audience of eight golf tournaments without Woods dropped 47 % from the year before. With the ongoing economic downturn, Tiger’s return couldn’t have come at a better time as TV companies and marketers are trying to recover some of their losses by capitalizing on his return. The article describes how the Golf Channel and NBC are promoting Woods’ return to golf. In addition to the TV companies, Woods’ return revives a struggling sports marking world. Several marketers including Nike and Louie Vutton include Tiger Woods in new promotional efforts based on his return to golf. There’s a reason Tiger Woods is the highest paid-athlete in the world, he sells.
The article in full appears below:
It’s Aaron Friedman, one of the lead bloggers for this week. As we have been looking at TV ratings lately, I found a Wall Street Journal article from last week about how one person can single-handedly having an impact on TV ratings and marketing for an industry. That person is Tiger Woods, one of the world’s most famous athletes, who has returned to professional competition this past week following a major injury that sidelined him. As Suzanne Vranica notes, Nielsen Media Research tracked that the average audience of eight golf tournaments without Woods dropped 47 % from the year before. With the ongoing economic downturn, Tiger’s return couldn’t have come at a better time as TV companies and marketers are trying to recover some of their losses by capitalizing on his return. The article describes how the Golf Channel and NBC are promoting Woods’ return to golf. In addition to the TV companies, Woods’ return revives a struggling sports marking world. Several marketers including Nike and Louie Vutton include Tiger Woods in new promotional efforts based on his return to golf. There’s a reason Tiger Woods is the highest paid-athlete in the world, he sells.
The article in full appears below:
Marketers Cheer Tiger Woods' Return
Advertising
Marketers Cheer Tiger Woods's Return
By Suzanne Vranica
957 words
25 February 2009
The Wall Street Journal
B1
English
(Copyright (c) 2009, Dow Jones & Company, Inc.)
Tiger Woods is returning to golf after an eight-month hiatus, and a gaggle of marketers is looking for a boost from the comeback of the endorsement king.
Gatorade, which has had a formal relationship with Mr. Woods since 2007, is set to run a print ad in Sports Illustrated featuring a fan in the gallery holding up a homemade sign that reads: "Welcome Back Tiger."
The ad hits newsstands Wednesday, to coincide with Mr. Woods's triumphal return, which starts with the WGC-Accenture Match Play Championship. The PepsiCo sports beverage is planning to relaunch its Tiger Focus drink in the coming weeks.
"Professional golf without Tiger Woods is like a Hollywood blockbuster without a leading man," said Jeff Urban, a Gatorade senior vice president of sports marketing, in a statement.
A knee injury that required major surgery forced Mr. Woods to take a break from golf in June, shortly after his nail-biting defeat of Rocco Mediate during the U.S. Open at Torrey Pines in San Diego. Since then, TV ratings for golf have plunged, according to Nielsen, and many companies have been left trying to figure out how best to market their wares with the sport's biggest star absent from the game.
During his time away, many advertisers, including sports-apparel maker Nike, continued to use Mr. Woods or his image in their marketing. But the average number of viewers who watched network broadcasts of eight golf tournaments without Mr. Woods dropped 47% compared with the previous year, when Mr. Woods was playing, according to Nielsen.
With his return this week, media outlets are working overtime to leverage the buzz. "The Golf Channel and NBC are actively trying to monetize the return of Mr. Woods," says Sam Sussman, director of sports activation at Starcom, a media-buying firm owned by Publicis Groupe. "Tiger's return is a much-needed distraction from the tough economic pressure the PGA and others are facing."
Indeed, General Electric's NBC wasted no time in publicizing Mr. Woods's return, broadcasting a special promotional spot just hours after the golfer announced last Thursday that he planned to compete in the WGC-Accenture tournament. Since then, the network, which will air the final rounds of the tournament this weekend, has shown little let-up.
Mr. Woods has been the top-earning American athlete on Sports Illustrated's Fortunate 50 list for several years, raking in about $128 million annually from salary, winnings, endorsements and appearances. He is the front man for a long list of marketers, including watch maker Tag Heuer, consulting firm Accenture and Nike. Sports Illustrated estimates that Mr. Woods has earned close to $800 million on and off the course over his 13-year career and should become the first billion-dollar athlete in the next two years.
So, marketers are trying to make up for lost time. Tag Heuer, which is owned by French luxury-goods giant LVMH Moet Hennessy Louis Vuitton, is kicking off a direct mail and billboard campaign next week to promote a sweepstakes offering consumers the chance to play golf with Mr. Woods. Tag Heuer has had a deal with Mr. Woods since 2002.
Nike is set to launch a spot Wednesday on TV networks like Walt Disney's ESPN and the Golf Channel, which will air the first rounds of the WGC-Accenture tournament. "We knew when Tiger returned it would be a big, if not the biggest, sports story of the year," says Cindy Davis, president of Nike Golf. "We wanted to capitalize on that."
The new Nike ad features golfers, including Stewart Cink and Trevor Immelman, soaking up the limelight in Mr. Woods's absence, as the Lesley Gore song "Sunshine, Lollipops and Rainbows" plays in the background. The golfers are swarmed by bikini-clad women demanding autographs, make red-carpet appearances and land on the cover of golf magazines. Then, Mr. Woods enters, and the party's over. The ad was crafted by Wieden + Kennedy.
Mr. Woods's return couldn't come at a more opportune time. The recession has already taken a bite out of the sports-marketing world. North American companies are expected to increase spending on sports, arts, cause and entertainment marketing by just 2.2% to $16.97 billion this year, according to IEG, a WPP-owned company that tracks sponsorship deals. That would be the weakest growth rate in 24 years. Last year, such spending rose 11% to $16.61 billion.
Advertising executives who specialize in sports marketing believe that golf could be particularly vulnerable to the slump because the sport is heavily dependant on ads and sponsorships from automotive and financial-services firms, both in crisis.
Even Mr. Woods isn't immune from the downturn. Last year, General Motors ended its longtime deal with the golfer, who it tapped in 2000 to promote its Buick brand. But he recently signed a deal with AT&T.
Product marketers aren't the only ones trying to make a buck on the hoopla. PGATour.com has launched "Tiger Returns," a specially designed Web site that will provide hole-by-hole video coverage of this week's tournament. The site will feature nearly a dozen online exclusives, including a live blog on Mr. Woods's practice rounds, complete with video highlights and a live tournament-bracket scoring feature.
PGATour.com, which is run by Time Warner's Turner Sports unit, hasn't sold advertising specifically tied to Mr. Woods's return, but it expects a boost in traffic for the site's current advertisers, including FedEx and Buick.
Marketers Cheer Tiger Woods's Return
By Suzanne Vranica
957 words
25 February 2009
The Wall Street Journal
B1
English
(Copyright (c) 2009, Dow Jones & Company, Inc.)
Tiger Woods is returning to golf after an eight-month hiatus, and a gaggle of marketers is looking for a boost from the comeback of the endorsement king.
Gatorade, which has had a formal relationship with Mr. Woods since 2007, is set to run a print ad in Sports Illustrated featuring a fan in the gallery holding up a homemade sign that reads: "Welcome Back Tiger."
The ad hits newsstands Wednesday, to coincide with Mr. Woods's triumphal return, which starts with the WGC-Accenture Match Play Championship. The PepsiCo sports beverage is planning to relaunch its Tiger Focus drink in the coming weeks.
"Professional golf without Tiger Woods is like a Hollywood blockbuster without a leading man," said Jeff Urban, a Gatorade senior vice president of sports marketing, in a statement.
A knee injury that required major surgery forced Mr. Woods to take a break from golf in June, shortly after his nail-biting defeat of Rocco Mediate during the U.S. Open at Torrey Pines in San Diego. Since then, TV ratings for golf have plunged, according to Nielsen, and many companies have been left trying to figure out how best to market their wares with the sport's biggest star absent from the game.
During his time away, many advertisers, including sports-apparel maker Nike, continued to use Mr. Woods or his image in their marketing. But the average number of viewers who watched network broadcasts of eight golf tournaments without Mr. Woods dropped 47% compared with the previous year, when Mr. Woods was playing, according to Nielsen.
With his return this week, media outlets are working overtime to leverage the buzz. "The Golf Channel and NBC are actively trying to monetize the return of Mr. Woods," says Sam Sussman, director of sports activation at Starcom, a media-buying firm owned by Publicis Groupe. "Tiger's return is a much-needed distraction from the tough economic pressure the PGA and others are facing."
Indeed, General Electric's NBC wasted no time in publicizing Mr. Woods's return, broadcasting a special promotional spot just hours after the golfer announced last Thursday that he planned to compete in the WGC-Accenture tournament. Since then, the network, which will air the final rounds of the tournament this weekend, has shown little let-up.
Mr. Woods has been the top-earning American athlete on Sports Illustrated's Fortunate 50 list for several years, raking in about $128 million annually from salary, winnings, endorsements and appearances. He is the front man for a long list of marketers, including watch maker Tag Heuer, consulting firm Accenture and Nike. Sports Illustrated estimates that Mr. Woods has earned close to $800 million on and off the course over his 13-year career and should become the first billion-dollar athlete in the next two years.
So, marketers are trying to make up for lost time. Tag Heuer, which is owned by French luxury-goods giant LVMH Moet Hennessy Louis Vuitton, is kicking off a direct mail and billboard campaign next week to promote a sweepstakes offering consumers the chance to play golf with Mr. Woods. Tag Heuer has had a deal with Mr. Woods since 2002.
Nike is set to launch a spot Wednesday on TV networks like Walt Disney's ESPN and the Golf Channel, which will air the first rounds of the WGC-Accenture tournament. "We knew when Tiger returned it would be a big, if not the biggest, sports story of the year," says Cindy Davis, president of Nike Golf. "We wanted to capitalize on that."
The new Nike ad features golfers, including Stewart Cink and Trevor Immelman, soaking up the limelight in Mr. Woods's absence, as the Lesley Gore song "Sunshine, Lollipops and Rainbows" plays in the background. The golfers are swarmed by bikini-clad women demanding autographs, make red-carpet appearances and land on the cover of golf magazines. Then, Mr. Woods enters, and the party's over. The ad was crafted by Wieden + Kennedy.
Mr. Woods's return couldn't come at a more opportune time. The recession has already taken a bite out of the sports-marketing world. North American companies are expected to increase spending on sports, arts, cause and entertainment marketing by just 2.2% to $16.97 billion this year, according to IEG, a WPP-owned company that tracks sponsorship deals. That would be the weakest growth rate in 24 years. Last year, such spending rose 11% to $16.61 billion.
Advertising executives who specialize in sports marketing believe that golf could be particularly vulnerable to the slump because the sport is heavily dependant on ads and sponsorships from automotive and financial-services firms, both in crisis.
Even Mr. Woods isn't immune from the downturn. Last year, General Motors ended its longtime deal with the golfer, who it tapped in 2000 to promote its Buick brand. But he recently signed a deal with AT&T.
Product marketers aren't the only ones trying to make a buck on the hoopla. PGATour.com has launched "Tiger Returns," a specially designed Web site that will provide hole-by-hole video coverage of this week's tournament. The site will feature nearly a dozen online exclusives, including a live blog on Mr. Woods's practice rounds, complete with video highlights and a live tournament-bracket scoring feature.
PGATour.com, which is run by Time Warner's Turner Sports unit, hasn't sold advertising specifically tied to Mr. Woods's return, but it expects a boost in traffic for the site's current advertisers, including FedEx and Buick.
Monday, March 2, 2009
Web Advertising: Makeover Via Takeover Units
An article from media week.com which I feel ties in very closely with the last article on “Social Networking and Advertising.” According to today’s article, there is a call for drastic changes when it comes to the economic model of internet advertising. At the Internet Advertising Bureau’s annual meeting last week, David Payne, the CEO of ShortTail Media urged industry stakeholders to shift from user-worshipping to user-interrupting. He claims that a shift needs to be made from one in which the user has all the power when it comes to interactivity to one in which the power is shared (akin to a TV or Radio thirty second spot).
Also, there is a call for a revamping of how webpages and their ad contents are designed. Randall Rothenberg, president and CEO of IAB, implied that there might be mistakes in the way the medium is used for advertising because when standard units were adopted in the nineties, creative directors were not represented.
The major critique to these ideas is that the internet is a way more fluid medium than TV or Radio and as such should not be analyzed through the lens of those two. Internet users get turned off very easily because there is a plethora of choices. As such, we are light years away from a power-shift because the bulk of the power will be with the user for a really long time.
"In the church of the Internet user, David Payne committed blasphemy.
Web publishers have always treated their users as a sacred flock. But last week at the Interactive Advertising Bureau’s annual meeting in Orlando, Fla., Payne, the CEO of ShortTail Media and former senior vp & general manager at CNN.com, issued a daring challenge for the industry: stop worshiping, and start interrupting the almighty user.
“Gone are the days that we should be guided solely by our user experience,” said Payne. He cited the birth of two-minute ad pods and 30-second spots back in the 1950s--two highly successful, interruptive standards that might never have happened if TV execs had asked viewers their preference."
Full Article:- http://www.mediaweek.com/mw/content_display/news/digital-downloads/broadband/e3ifc7db5bf2ea46d95dbd1dab3bf765e60
Also, there is a call for a revamping of how webpages and their ad contents are designed. Randall Rothenberg, president and CEO of IAB, implied that there might be mistakes in the way the medium is used for advertising because when standard units were adopted in the nineties, creative directors were not represented.
The major critique to these ideas is that the internet is a way more fluid medium than TV or Radio and as such should not be analyzed through the lens of those two. Internet users get turned off very easily because there is a plethora of choices. As such, we are light years away from a power-shift because the bulk of the power will be with the user for a really long time.
"In the church of the Internet user, David Payne committed blasphemy.
Web publishers have always treated their users as a sacred flock. But last week at the Interactive Advertising Bureau’s annual meeting in Orlando, Fla., Payne, the CEO of ShortTail Media and former senior vp & general manager at CNN.com, issued a daring challenge for the industry: stop worshiping, and start interrupting the almighty user.
“Gone are the days that we should be guided solely by our user experience,” said Payne. He cited the birth of two-minute ad pods and 30-second spots back in the 1950s--two highly successful, interruptive standards that might never have happened if TV execs had asked viewers their preference."
Full Article:- http://www.mediaweek.com/mw/content_display/news/digital-downloads/broadband/e3ifc7db5bf2ea46d95dbd1dab3bf765e60
Thursday, February 26, 2009
Social Networking and Advertisements
Practically everyone (who's anyone) is on some sort of social networking site like Facebook or Myspace and it can be tricky to find ways to tap into this massive amount of users. According to a recent article on MediaPost, 43% of everyone who is online uses some sort of social networking. This is an amazing amount of people to advertise to and as this study points out, those social networkers are more likely to shop and spend more online than their peers. But it is tricky to get these users to actually look at your advertisement. This is why advertisers have to find even more creative ways to get this group of people to look, click and follow through. But if one can actually achieve this, then your clients business will boom.
full article: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100758#comments
This article has a really awesome break down chart of what social networking people do online and the percent that do it compared to those who do not belong to a social networking site.
| Advertising To Social Networkers Tricky |
| by Jack Loechner, 13 minutes ago |
| |
full article: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100758#comments
This article has a really awesome break down chart of what social networking people do online and the percent that do it compared to those who do not belong to a social networking site.
Tuesday, February 24, 2009
CPMs are real
We've talked a bit about calculating CPMs. Do know....it's not just some textbook thing that
I've made up. Here's an article from Media Post, reporting that SQAD will start using CPM to measure effectiveness of online ads. Prior to CPM, click-through or cost-per-click were used.
While you're at it, take a look at the article and some info about SQAD.
Full article link: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100865
More about SQAD: http://www.sqad.com/
I've made up. Here's an article from Media Post, reporting that SQAD will start using CPM to measure effectiveness of online ads. Prior to CPM, click-through or cost-per-click were used.
While you're at it, take a look at the article and some info about SQAD.
Full article link: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100865
| Firing SQAD: Data Firm Sets 'CPM' As Online Ad Metric |
| Joe Mandese, Feb 24, 2009 07:31 AM |
| In a move that will likely align the ROI of online advertising more closely with that of traditional media such as television, an influential source of media marketplace data this morning announced it will use Madison Avenue's long-standing CPM, or cost-per-thousand, metric as the "currency" for tracking online advertising. The announcement by Tarrytown, NY-based SQAD, comes as other influential industry source are trying to reshape online media in the image of television, and as online industry insiders wage their own debate about the best metrics for evaluating the efficacy of their medium. Instead of CPMs, which value a medium based on how much it costs to reach a thousand audience impressions, online media often is valued based on results or actions more akin to direct response of "performance"-based media, including CPC (cost-per-click) and CPA (cost-per-action) metrics. But SQAD's initiative comes as Madison Avenue is racing to standardize its buying metrics for television, abandoning the decades-old CPP, or cost-per-point (as in TV rating points) metric for spot and local TV buys, and standardizing all local and national TV advertising deals around the CPM. |
Sunday, February 22, 2009
ESPN Plans Local Sports Sites
I found this article on The Wall Street Journal and it discusses how the biggest sports cable network, ESPN, is capitalizing on the demise of local newspapers. ESPN announced the plan to launch ESPNChicago.com which is devoted to the Chicago sports scene. ESPN hopes their new site will be the first of many to break into the local markets. Since the Chicago Tribune and Chicago Sun- Times are going through hard times, the new site will give advertisers a popular new source to advertise on. The site already has one advertiser on board.
By Russell Adams
Add ESPN to the list of national news outlets positioning themselves to capitalize on the demise of local newspapers.
The “Worldwide Leader in Sports” this week said it plans to launch ESPNChicago.com, a Web site devoted to the Chicago sports scene. The site, scheduled to launch in April, will feature a daily Chicago version of “Sportscenter,” ESPN’s signature sports news show, and contributions from ESPN columnists and radio personalities with ties to the city.
http://blogs.wsj.com/digits/2009/02/20/espn-plans-local-sports-sites/
By Russell Adams
Add ESPN to the list of national news outlets positioning themselves to capitalize on the demise of local newspapers.
The “Worldwide Leader in Sports” this week said it plans to launch ESPNChicago.com, a Web site devoted to the Chicago sports scene. The site, scheduled to launch in April, will feature a daily Chicago version of “Sportscenter,” ESPN’s signature sports news show, and contributions from ESPN columnists and radio personalities with ties to the city.
http://blogs.wsj.com/digits/2009/02/20/espn-plans-local-sports-sites/
Wednesday, February 18, 2009
Local Web-Ad Market Cools Down
I found this article on TVNewsday, and it discusses an interesting phenomenon that I wasn't even sure was going on in advertising: local ad Internet advertising. It was surprising to me that this had become such a successful tool. In recent times the struggles are setting in for it, like just about everything in this business, and they are looking for ways out of it. However, there are some initiatives to help these local companies that are being started.
By EMILY STEEL
Local ads have accounted for some of the fastest growth in Internet advertising in recent years, as small businesses from car-repair shops in Dallas to bakeries in Charlotte, N.C., have taken their marketing online.
This year, growth in the local-ad market -- which represents about a third of total online ad spending in the U.S. -- is expected to shrink, according to one key estimate, challenging the ad and media-buying shops that rely on the local Internet market.
A number of start-ups, including ReachLocal, Yodle and Spot Runner, have cropped up in the past few years, raising millions of dollars and building technologies to help local businesses make the most of their Internet ad buys. Meanwhile, more-established local-media companies, from newspapers to Yellow Pages directories, have scurried to retrain their sales forces to sell online ads alongside their traditional products.
Tuesday, February 17, 2009
The Impending Doom for Radio? Wachovia analyst thinks so...
Everyone knows that radio isn't what it used to be but how soon, if ever, will radio fade into the background noise of today's new media convergence? Wachovia analyst Marci Ryvicker thinks that it will be sometime time soon because 2009 isn't proving to be any better than last year.
Wachovia Forecasts Radio Doom In '09 by Erik Sass,
If anyone is still cherishing hopes of a radio turnaround in 2009, Wachovia analyst Marci Ryvicker's latest note to investors should doom that idea. The outlook is overwhelmingly negative, as Ryvicker sees a 9% decline in revenues in 2008 followed by a further 13% decline in 2009.
Wachovia Forecasts Radio Doom In '09 by Erik Sass,
If anyone is still cherishing hopes of a radio turnaround in 2009, Wachovia analyst Marci Ryvicker's latest note to investors should doom that idea. The outlook is overwhelmingly negative, as Ryvicker sees a 9% decline in revenues in 2008 followed by a further 13% decline in 2009.
"It's the same depressing story," Ryvicker noted. "Advertisers are cutting back significantly, given rising unemployment and the general state of the economy."....continue reading (http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100330)
The article goes on to talk about the dismal future for radio advertising for 2009 and even though the last figures from 2008 are not in yet, Ryvicker says it won't prove to be any different than the other quarters. The reason for this analyst's grim outlook is the lack of local and some national advertising for radio stations that used to be their bread and butter. Without the proper advertising, radio stations have very little options left and have started to defaulting on their loans. What could this mean? This might mean even more consolidation of radio stations by one company because they might want to take the chance to buy more radio stations at the cheap price their bank might be selling them for. This could cause even more harm to the radio station's programming and individuality.
I do believe that their will always be a place for radio in our society and communities but the traditional roles of the radio have long been gone. Only time will tell if the radio industry can keep up with the times. Until then, advertisers will continue to drop their dollars from radio because it will not be making them any money. And with the economy still in shambles and a recovery from it not in the near future, you will see more and more advertisers take their dollars some place else.
Thursday, February 12, 2009
NATPE Conference content
Here's the NATPE Conference video player page. You'll find conference video content on this page.
http://live.vimation.com/vim/?v_launch=natpe
ALSO, go to YouTube to view 9 NATPE Career Advice videos....here's a link:
http://www.youtube.com/results?search_type=&search_query=natpeed&aq=f
http://live.vimation.com/vim/?v_launch=natpe
ALSO, go to YouTube to view 9 NATPE Career Advice videos....here's a link:
http://www.youtube.com/results?search_type=&search_query=natpeed&aq=f
Fuzzy TV Future
The Wall Street Journal provided a great explanation of the shifting TV landscape in a front page article on Tuesday. "Local TV Stations Face a Fuzzy Future" describes the gradual shift in station-network relations and suggests a day when one or more networks may cut the distribution cord with local affiliates to provide programming directly to a cable channel. There are a number of issues at play, including: media conglomerates who need not share content with local stations, a surplus of over-the-air stations--that will expand further with the final shift to digital broadcasting, evolving devices for consuming content (think small and mobile), shifting consumer preferences--an entire generation versed in not only cable but broadband literate, and a changing production structure--the shift from expensive, scripted production to lower cost formats.
All of this changes the employment picture for college graduates. The bright spots: some sort of advertising sales need will exist--perhaps selling "spots" but maybe striking cross-platform and product tie-in deals. I'm sure there are other employment bright spots but I don't think traditional television production is one of them--not in an age of better, "smarter" production tools.
Here's the article link:
http://online.wsj.com/article/SB123422910357065971.html
And, some of the opening text:
All of this changes the employment picture for college graduates. The bright spots: some sort of advertising sales need will exist--perhaps selling "spots" but maybe striking cross-platform and product tie-in deals. I'm sure there are other employment bright spots but I don't think traditional television production is one of them--not in an age of better, "smarter" production tools.
Here's the article link:
http://online.wsj.com/article/SB123422910357065971.html
And, some of the opening text:
LAS VEGAS -- Lisa Howfield, general manager of KVBC, the NBC affiliate here, watched last year as the broadcast-television business began to shrink. She started cutting. She combined departments. She made do with old equipment, and did away with luxuries like yearly sales getaways.
In December and January, she laid off 15 employees, or 6% of her staff. After the weatherman left last month, one of the morning news anchors took on both jobs. "It's like a bad roller-coaster ride," says Ms. Howfield. Her station's full-day viewership is down 7.7% this TV season from the same period last year, according to Nielsen Co., and Ms. Howfield expects her ad revenue in 2009 will be down 30% from 2008.
Local television stations like Ms. Howfield's dominated the TV business for more than half a century. They inspired the term "network": a web of Channel 7s and 11s that delivered shows from ABC, CBS, NBC -- and later, Fox -- plus local news, syndicated reruns and talk shows. Because the stations owned the licenses to the airwaves that broadcast TV signals, big networks couldn't distribute content without them. In turn, local stations became the vehicles for the greatest mass-market advertising blitz in history.
Click the link to read the full article.
Monday, February 9, 2009
'Saturday Night Live' Acts as Ad Agency for Pepsi
http://adage.com/madisonandvine/article?article_id=134349
NBC's Lorne Michaels and Co. Create Spots Based on 'MacGruber' Sketches
NEW YORK (AdAge.com) -- Live from New York, it's ... the latest upstart ad agency?
Madison Avenue is known for a litany of storied acronyms, such as BBDO and DDB. But is advertising's hallowed capital ready for another pair of familiar but eyebrow-raising initials: NBC and SNL? And could a show producer such as Lorne Michaels become the next sought-after creative director?
In a move that some viewers considered shocking, cast and crew from the Peacock Network's venerable "Saturday Night Live" crafted three ads for Pepsi that essentially grafted mentions, cans and logos of the famous soda into three different executions of "MacGruber," a long-running spoof of the old "MacGyver" TV series. The ads looked just like "SNL" skits but ran during commercial breaks on the Jan. 31 edition of the show. One of the ads also appeared during the recent Super Bowl. Pepsi's ad agency, Omnicom Group's TBWA/Chiat/Day, had little if any involvement in the commercials....
It seems the advertising model has changed yet again. This time, fusing the ad sales department and the tv program production department together-creating a "fresh" approach to commercials.
While the ad appears to be just another sketch for Will Forte and his "MacGruber" character, it's actually a commercial for Pepsi.
The economy is the driving force in this model, determining how and why the commercial is created. For Lorne Michaels, head honcho of SNL, it's a step forward to help NBC during these difficult times. First, NBC doesn't have to pay an advertising agency for an ad concept because they're using their own intellectual property. Second, Pepsi pays NBC-specifically SNL-for running the advertisement. This "extra" money from Pepsi will most likely cover costs for new sets, props, lighting, ect. What a huge difference that makes for NBC and Lorne Michaels along the way.
The "MacGruber" Pepsi commercials received coveted positions during the Super Bowl, thus saving NBC millions of dollars and giving "MacGruber" fans a few laughs along the way.
NBC's Ben Silverman, co-chairman of entertainment, sees this as the future of advertising on television. He claims that viewers can expect to see their favorite television characters pushing a brand in the next 30 sec ad spot.
While this new venture is exciting and different, what happens to the ad agency in the process? I don't think the economic hardships will completely destroy the advertising business. But when the creative minds behind television's hottest shows are willing to take the time and develop commercials, who needs the suits at advertising agencies?
-Christina Colosimo
Sunday, February 8, 2009
Television: It's Like Confort Food
The New York Times--a media empire with a long history but is now struggling to keep itself afloat--featured this article in Sunday's online recommendations. As Maxwell Smart--who was originally a television character before the movie remake--might say, "Would you believe....that the typical American household has 2.7 persons but 2.9 TV sets and the typical American watched 142 hours of television per month?"
The actual article is called, "Why Television Still Shines in a World of Screens."
Why in this Internet world with the upcoming invasion of the small screens would this be happening? As newspaper sellers use to say, read all about it at:
http://www.nytimes.com/2009/02/08/business/media/08digi.html?th&emc=th
gp
The actual article is called, "Why Television Still Shines in a World of Screens."
Why in this Internet world with the upcoming invasion of the small screens would this be happening? As newspaper sellers use to say, read all about it at:
http://www.nytimes.com/2009/02/08/business/media/08digi.html?th&emc=th
gp
Friday, February 6, 2009
Ad Decline, Rise of Smartphones....
Click the link below to read the full article. As we think about where money will be spent on advertising, new media are always part of the discussion. Advertising professionals still see ad dollars shifting away from traditional media platforms...the figure they cite is about 1/4 of the ad budget migrating to non-traditional media from traditional platforms.
As you look for articles to blog about, find articles that offer an explanation of future ad spending or explanations of developing advertising platforms. The growth of mobile connectivity--smart phones--that will allow consumers to cut the cord from the television set will further change media use pattern, assuming a tight economy doesn't change demand.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99827
As you look for articles to blog about, find articles that offer an explanation of future ad spending or explanations of developing advertising platforms. The growth of mobile connectivity--smart phones--that will allow consumers to cut the cord from the television set will further change media use pattern, assuming a tight economy doesn't change demand.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99827
| Story |
| Ad Decline, Rise Of Smartphones Seen As Biggest Trends |
| Mark Walsh, Feb 06, 2009 07:00 AM |
 The pullback of ad spending and mobile phones becoming personal computers are the most "disruptive" force in media today, according to a new survey of media and advertising professionals by consulting giant KPMG.
Of the 200 executives polled by KPMG in connection with the AlwaysOn OnMedia NYC conference this week, nearly half cited the ad downturn as the industry's major trend, while 40% noted the growing use of cell phones for more than just talking. A close third was the thinning of "old media" through bankruptcies and closures (38%). Survey participants were asked to choose from among six trends that also included Internet penetration opening up global markets (25%); the failure of social networks to monetize as expected (18%); and smartphones' potential for location-targeted content, advertising and marketing (17%). The economic downturn also appears to have cooled enthusiasm for shifting ad dollars into digital media. While three-quarters expect more than a quarter of ad budgets moving away from traditional outlets in the next five years, that 75% is down from 90% a year ago. |
Thursday, February 5, 2009
In Campaign Wars, Apple Still Has Microsoft’s Number
Hey guys, this is Nicole one of your lead bloggers for the week. I thought this article was interesting because even though we are going through dark economic times Apple is upping their advertisement spending. In fact Apple increased their marketing and advertising in the last 3 months of 2008 even though it was obvious that the economy was plummeting. Apple is using this time to take full advantage of the fact that recent ads for Microsoft have failed, and hopefully will push ahead of Microsoft. Although I think that Apple is making a risky move their market shares show that they have gained more than 2 percentage points in the last year and now controls nearly 10 percent of the overall market for personal computers. So they must be doing something right.
February 4, 2009
ADVERTISING
In Campaign Wars, Apple Still Has Microsoft’s Number
By BRAD STONE
TWENTY-FIVE years ago, Apple hurled a legendary marketing sledgehammer at I.B.M. personal computers that ran Microsoft software. During the 1984 Super Bowl, Apple ran a television ad that depicted those machines as instruments of Big Brotherish conformity. The ad was shown just once, but people still talk about it.
Today, Apple is still producing ads that hammer away at computers that run Microsoft’s software. But this time, Apple’s pounding is constant, even as Microsoft has been weakened by product stumbles and a series of ads that fell flat with the public.
While other technology companies curtail their ad budgets to ride out what appears to be an intense and protracted recession, Apple, based in Cupertino, Calif., said in its most recent earnings report that it actually increased marketing and advertising during the last three months of 2008, compared with the same period a year ago.
That has made Apple the second-most prolific technology advertiser, behind only Microsoft. During the first nine months of 2008, Apple’s ad spending vaulted to $133 million, surpassing Hewlett-Packard and I.B.M. — companies with three times Apple’s annual sales — according to the tracking firm TNS Media Intelligence. During the same period, Microsoft spent $191 million.
Apple’s ads promote what you can do with an iPhone or iPod, or show the comedian John Hodgman as a schlubby PC guy being outfoxed by the actor Justin Long as hip Mac guy.
There is good reason for Apple’s chief executive, Steven P. Jobs, and its longtime ad agency, TBWA/Chiat/Day, to be drawing these pointed contrasts: Microsoft, Apple’s longtime nemesis, is more vulnerable than it has been in years.
Microsoft’s current operating system, Windows Vista, is a well-known disappointment. And the replacement, Windows 7, will not be ready for regular users for at least six months, analysts say. Last month, Microsoft reported poor financial results and said it would lay off as many as 5,000 employees.
“Apple is trying to take as much advantage as they can during this period where there is a lot of confusion on the Windows side,” said Tim Bajarin, president of Creative Strategies and a longtime Apple watcher. “It wants to bring people into its retail stores and to contrast it to what they already know.”
Microsoft, for its part, said that Apple gave the attack ads a short rest late last year after Microsoft unveiled its counterattack. Microsoft’s campaign, devised by the agency Crispin, Porter & Bogusky, initially featured the comedian Jerry Seinfeld and Microsoft’s co-founder, Bill Gates, and then a diverse collection of normal people proudly proclaiming, “I am a PC.”
“I think we confused them a little bit by embracing the stigma they put on our brand and then taking it in a different direction,” said David Webster, a general manager at Microsoft.
An Apple spokesman declined to comment about either company’s advertising.
•
So far, Apple seems to be winning the fight. The Macintosh gained more than 2 percentage points of market share in the last year and now controls nearly 10 percent of the overall market for personal computers, according to the research firm Net Applications.
Apple’s ads have also fared better than Microsoft’s in the war for consumers’ hearts. In the last two months, Brand Keys, a market research company based in New York, queried 400 Apple and Microsoft users and measured their perceptions of Apple’s and Microsoft’s brand equity before and after seeing examples of the companies’ advertising.
Among the ads the firm showed were “Bean Counter,” an Apple spot that poked fun at Microsoft’s spending money on advertising instead of fixing product flaws. Brand Keys also surveyed responses to Microsoft’s first Seinfeld commercial, “Shoe Circus,” and the first “I am a PC” spot.
“Off the Air,” an ad that promised Apple stores would help customers switch from Windows to Apple’s Mac platform, was highly successful in lifting the brand equity that Apple users felt around the concept of “innovation, design and added value” — a factor that drives loyalty. The spot also improved PC users’ perception of Macs for their “trouble-free performance, service and support.”
On the other hand, Microsoft’s “Shoe Circus,” in which Mr. Seinfeld helped Mr. Gates buy shoes, failed miserably with consumers. After seeing the ad, both Apple and Microsoft users had a more negative perception of Microsoft in the areas of innovation, technology, trouble-free design, and warranty and pricing. “When you see an ad perform this poorly,” said Amy Shea, the executive vice president at Brand Keys who conducted the research, “you’ve got a real problem.”
•
The news was not all bad for Microsoft, though. “I am a PC” — the egalitarian response to Apple that Microsoft has settled on for its ongoing campaign — has worked well to lift PC users’ perception of the brand as technologically and environmentally advanced.
The message of the survey, Ms. Shea said, is that companies should play to their strengths, which in Microsoft’s case is the sheer ubiquity of its software around the world.
“Everyone who has a PC feels that they are very plugged in and that the world speaks almost one language,” she said. “Microsoft’s ability to tell that story visually by going around the world made that ad successful and positioned them as green and even cool.”
Apple, for its part, has played to its reputation as a hip, creative company, personified by Mr. Long’s straight-man performance as Mac Guy. The ads also fit with Apple’s 25-year history as a company willing to draw colorful juxtapositions against its larger, more powerful rivals.
February 4, 2009
ADVERTISING
In Campaign Wars, Apple Still Has Microsoft’s Number
By BRAD STONE
TWENTY-FIVE years ago, Apple hurled a legendary marketing sledgehammer at I.B.M. personal computers that ran Microsoft software. During the 1984 Super Bowl, Apple ran a television ad that depicted those machines as instruments of Big Brotherish conformity. The ad was shown just once, but people still talk about it.
Today, Apple is still producing ads that hammer away at computers that run Microsoft’s software. But this time, Apple’s pounding is constant, even as Microsoft has been weakened by product stumbles and a series of ads that fell flat with the public.
While other technology companies curtail their ad budgets to ride out what appears to be an intense and protracted recession, Apple, based in Cupertino, Calif., said in its most recent earnings report that it actually increased marketing and advertising during the last three months of 2008, compared with the same period a year ago.
That has made Apple the second-most prolific technology advertiser, behind only Microsoft. During the first nine months of 2008, Apple’s ad spending vaulted to $133 million, surpassing Hewlett-Packard and I.B.M. — companies with three times Apple’s annual sales — according to the tracking firm TNS Media Intelligence. During the same period, Microsoft spent $191 million.
Apple’s ads promote what you can do with an iPhone or iPod, or show the comedian John Hodgman as a schlubby PC guy being outfoxed by the actor Justin Long as hip Mac guy.
There is good reason for Apple’s chief executive, Steven P. Jobs, and its longtime ad agency, TBWA/Chiat/Day, to be drawing these pointed contrasts: Microsoft, Apple’s longtime nemesis, is more vulnerable than it has been in years.
Microsoft’s current operating system, Windows Vista, is a well-known disappointment. And the replacement, Windows 7, will not be ready for regular users for at least six months, analysts say. Last month, Microsoft reported poor financial results and said it would lay off as many as 5,000 employees.
“Apple is trying to take as much advantage as they can during this period where there is a lot of confusion on the Windows side,” said Tim Bajarin, president of Creative Strategies and a longtime Apple watcher. “It wants to bring people into its retail stores and to contrast it to what they already know.”
Microsoft, for its part, said that Apple gave the attack ads a short rest late last year after Microsoft unveiled its counterattack. Microsoft’s campaign, devised by the agency Crispin, Porter & Bogusky, initially featured the comedian Jerry Seinfeld and Microsoft’s co-founder, Bill Gates, and then a diverse collection of normal people proudly proclaiming, “I am a PC.”
“I think we confused them a little bit by embracing the stigma they put on our brand and then taking it in a different direction,” said David Webster, a general manager at Microsoft.
An Apple spokesman declined to comment about either company’s advertising.
•
So far, Apple seems to be winning the fight. The Macintosh gained more than 2 percentage points of market share in the last year and now controls nearly 10 percent of the overall market for personal computers, according to the research firm Net Applications.
Apple’s ads have also fared better than Microsoft’s in the war for consumers’ hearts. In the last two months, Brand Keys, a market research company based in New York, queried 400 Apple and Microsoft users and measured their perceptions of Apple’s and Microsoft’s brand equity before and after seeing examples of the companies’ advertising.
Among the ads the firm showed were “Bean Counter,” an Apple spot that poked fun at Microsoft’s spending money on advertising instead of fixing product flaws. Brand Keys also surveyed responses to Microsoft’s first Seinfeld commercial, “Shoe Circus,” and the first “I am a PC” spot.
“Off the Air,” an ad that promised Apple stores would help customers switch from Windows to Apple’s Mac platform, was highly successful in lifting the brand equity that Apple users felt around the concept of “innovation, design and added value” — a factor that drives loyalty. The spot also improved PC users’ perception of Macs for their “trouble-free performance, service and support.”
On the other hand, Microsoft’s “Shoe Circus,” in which Mr. Seinfeld helped Mr. Gates buy shoes, failed miserably with consumers. After seeing the ad, both Apple and Microsoft users had a more negative perception of Microsoft in the areas of innovation, technology, trouble-free design, and warranty and pricing. “When you see an ad perform this poorly,” said Amy Shea, the executive vice president at Brand Keys who conducted the research, “you’ve got a real problem.”
•
The news was not all bad for Microsoft, though. “I am a PC” — the egalitarian response to Apple that Microsoft has settled on for its ongoing campaign — has worked well to lift PC users’ perception of the brand as technologically and environmentally advanced.
The message of the survey, Ms. Shea said, is that companies should play to their strengths, which in Microsoft’s case is the sheer ubiquity of its software around the world.
“Everyone who has a PC feels that they are very plugged in and that the world speaks almost one language,” she said. “Microsoft’s ability to tell that story visually by going around the world made that ad successful and positioned them as green and even cool.”
Apple, for its part, has played to its reputation as a hip, creative company, personified by Mr. Long’s straight-man performance as Mac Guy. The ads also fit with Apple’s 25-year history as a company willing to draw colorful juxtapositions against its larger, more powerful rivals.
Friday, January 30, 2009
At NATPE, It's Out with the Old, In with ?
Again, it's Adam and I wanted to post another NATPE story following its conclusion. This story says how the overall theme of everything is dismal, but the fact of the matter was that thje people we talked to who were there said differently! Maybe the overall market is looking pale in comparison, but there is still much to be excited about!
By Harry A. Jessell
TVNEWSDAY, Jan 30 2009, 3:47 PM ET
In one sense (and perhaps only one), the NATPE conference that just wrapped up in Las Vegas's Mandalay Bay Hotel was a roaring success.
As any good trade show should, it revealed a clear picture of the state of the TV broadcasting business.
Unfortunately, it's not a pretty picture, sort of like the one Dorian Gray had stashed in his attic. It's marred by plummeting revenue, layoffs and cuts in service — all kinds of ugly stuff.
Maybe that's why so many broadcasters stayed away from the conference. Who wants to dwell on that picture?
The biggest broadcasting event at NATPE was a luncheon and panel session hosted by B&C. Many a discouraging word was heard.
Among others, the panel featured the top executives of two of the nation's largest TV station groups — Dennis Swanson of Fox and Ed Wilson of Tribune.
Both conceded that broadcasting was in a deep hole. Wilson could hardly have done otherwise, with his company hiding in Chapter 11 bankruptcy.
And both more or less conceded that the business is unlikely to snap back to its old self, even after the economy does.
Swanson was particularly gloomy, saying that stations have to adopt new "cost structures" in line with the new reality of diminished revenue. "That's the highest priority we have."
Everybody who works at a TV station knows what that means — layoffs. HR's angel of death has already passed over many, if not most, TV stations and could come again. I could launch a new Web site devoted to stories of producers, anchors and other station rank and file getting the heave ho.
I suppose it's the good broadcaster these days who replaces fired workers with technology or compensates for them with new ways of doing business.
So, Swanson talked about Fox's initiative to pool local news gathering resources with other broadcasters and Wilson talked about cross-platform selling and motivating sales people to dig deeper for local ads.
The new cost structure also apparently means that stations are less willing to pay hefty license fees for first-run syndicated programming. That has put a major drag on the syndication business and real commerce at NATPE.
Only two big-budget shows are firm goes for the fall — Sony's Dr. Oz and Debmar-Mercury's Wendy Williams.
CBS had to withdraw a promising talk show featuring TV evangelist T.D. Jakes even though it had Tribune lined up in the big markets, reportedly because it couldn't squeeze sufficient fees out of the smaller markets.
Program Partners may be able to forge ahead with its Marie Osmond talk show, having finally found outlet in New York (WNBC) and Los Angeles (Tribune's KTLA), but it still has big holes to fill in the top 10 markets.
Post-NATPE, Twentieth's Are You Smarter Than a 5th Grader? remains on the bubble.
The new reality may also affect renewals as they come up.
Over breakfast, a syndicator and I speculated that Oprah would not be coming back when her current contract expires in 2011, not because her ratings are dropping (although that's part of it) or because she has better things to do, but because stations will no longer be willing to pay enormous weekly license fees for any show, not even Oprah.
So, after all these years, will Oprah accept a salary cut commensurate with those reduced licensed fees? Don't think so.
Other perennials like Jeopardy and Wheel of Fortune may also find that the cash isn't there when they come up for renewal. Fortunately for CBS, those shows' appeal is not based entirely on the fat salaries of their hosts.
NATPE's big keynoter was Tom Rogers, the CEO of TiVo, who did all he could to break the spirit of any remaining broadcaster/optimist by predicting the end of advertiser-supported TV as we know it when DVR penetration hits 50 or 60 percent and more than half the people have the ability to skip commercials.
"In two to three years, the TV industry is going to face an advertising crisis that is more severe for it than this current financial crisis," he warned.
"You need to take this threat as immediate," Rogers said. "The entire landscape of TV consumption is about to be turned on its head."
Remember, folks, this was the keynote.
NATPE itself served as a metaphor for the troubles of broadcasting. Despite an excellent program that included top TV execs (the likes of ABC-Disney's Anne Sweeney and NBC's Ben Silverman) and showcased technology that could one day save the day, it was unrecognizable to anybody who attended even three or four years ago.
NATPE contends that 5,000 people registered for the show. Maybe so, but it was way too few to inject any energy into either the exhibit floor or the hotel suites. Every day was Thursday.
By Harry A. Jessell
TVNEWSDAY, Jan 30 2009, 3:47 PM ET
In one sense (and perhaps only one), the NATPE conference that just wrapped up in Las Vegas's Mandalay Bay Hotel was a roaring success.
As any good trade show should, it revealed a clear picture of the state of the TV broadcasting business.
Unfortunately, it's not a pretty picture, sort of like the one Dorian Gray had stashed in his attic. It's marred by plummeting revenue, layoffs and cuts in service — all kinds of ugly stuff.
Maybe that's why so many broadcasters stayed away from the conference. Who wants to dwell on that picture?
The biggest broadcasting event at NATPE was a luncheon and panel session hosted by B&C. Many a discouraging word was heard.
Among others, the panel featured the top executives of two of the nation's largest TV station groups — Dennis Swanson of Fox and Ed Wilson of Tribune.
Both conceded that broadcasting was in a deep hole. Wilson could hardly have done otherwise, with his company hiding in Chapter 11 bankruptcy.
And both more or less conceded that the business is unlikely to snap back to its old self, even after the economy does.
Swanson was particularly gloomy, saying that stations have to adopt new "cost structures" in line with the new reality of diminished revenue. "That's the highest priority we have."
Everybody who works at a TV station knows what that means — layoffs. HR's angel of death has already passed over many, if not most, TV stations and could come again. I could launch a new Web site devoted to stories of producers, anchors and other station rank and file getting the heave ho.
I suppose it's the good broadcaster these days who replaces fired workers with technology or compensates for them with new ways of doing business.
So, Swanson talked about Fox's initiative to pool local news gathering resources with other broadcasters and Wilson talked about cross-platform selling and motivating sales people to dig deeper for local ads.
The new cost structure also apparently means that stations are less willing to pay hefty license fees for first-run syndicated programming. That has put a major drag on the syndication business and real commerce at NATPE.
Only two big-budget shows are firm goes for the fall — Sony's Dr. Oz and Debmar-Mercury's Wendy Williams.
CBS had to withdraw a promising talk show featuring TV evangelist T.D. Jakes even though it had Tribune lined up in the big markets, reportedly because it couldn't squeeze sufficient fees out of the smaller markets.
Program Partners may be able to forge ahead with its Marie Osmond talk show, having finally found outlet in New York (WNBC) and Los Angeles (Tribune's KTLA), but it still has big holes to fill in the top 10 markets.
Post-NATPE, Twentieth's Are You Smarter Than a 5th Grader? remains on the bubble.
The new reality may also affect renewals as they come up.
Over breakfast, a syndicator and I speculated that Oprah would not be coming back when her current contract expires in 2011, not because her ratings are dropping (although that's part of it) or because she has better things to do, but because stations will no longer be willing to pay enormous weekly license fees for any show, not even Oprah.
So, after all these years, will Oprah accept a salary cut commensurate with those reduced licensed fees? Don't think so.
Other perennials like Jeopardy and Wheel of Fortune may also find that the cash isn't there when they come up for renewal. Fortunately for CBS, those shows' appeal is not based entirely on the fat salaries of their hosts.
NATPE's big keynoter was Tom Rogers, the CEO of TiVo, who did all he could to break the spirit of any remaining broadcaster/optimist by predicting the end of advertiser-supported TV as we know it when DVR penetration hits 50 or 60 percent and more than half the people have the ability to skip commercials.
"In two to three years, the TV industry is going to face an advertising crisis that is more severe for it than this current financial crisis," he warned.
"You need to take this threat as immediate," Rogers said. "The entire landscape of TV consumption is about to be turned on its head."
Remember, folks, this was the keynote.
NATPE itself served as a metaphor for the troubles of broadcasting. Despite an excellent program that included top TV execs (the likes of ABC-Disney's Anne Sweeney and NBC's Ben Silverman) and showcased technology that could one day save the day, it was unrecognizable to anybody who attended even three or four years ago.
NATPE contends that 5,000 people registered for the show. Maybe so, but it was way too few to inject any energy into either the exhibit floor or the hotel suites. Every day was Thursday.
Wednesday, January 28, 2009
Media & Marketing: Marketers Take Search Ads Beyond Search Engines
Hey class, its Aaron Friedman, one of the lead bloggers for the week and I am posting a Wall Street Journal article about new online marketing strategies. The article is entitled "Media and Marking: Marketers Take Search Ads Beyond Search Engines" and describes a shift in online ad purchasing from search engines to other increasingly popular forms of digital media. The shift is the result of marketers re-thinking of how to most effectively boost their online exposure in an age where the Internet is at our fingertips. The article uses Pizza Hut as an example of one of the many marketers who have shifted their placement of advertising in digital media. Pizza Hut started to buy ads tied to search engines, but more recently exteneded their online marketing to social network sites and cell phones. I felt that the article was relevant because we are all consumers of media and the marketers impact us all. Also, an overwhelming number of college students have Facebook profiles, which contain ads linked by marketers based on information revealed in profiles by Facebook users. Every time a Facebook user checks their profile they are exposed to this new shift in online marketing. Two questions from the article emerge: What is the current effect of this shift in digital marketing? How could it redefine the way marketers are able to influence consumers?
Media & Marketing: Marketers Take Search Ads Beyond Search Engines
-- Media & Marketing: Marketers Take Search Ads Beyond Search Engines --- Facebook, MySpace, iPhone Figure in Efforts by Pizza Hut, Others to Boost Online Exposure While Controlling Costs
By Emily Steel
694 words
20 January 2009
The Wall Street Journal
B4
English
(Copyright (c) 2009, Dow Jones & Company, Inc.)
Marketers, seeking to boost their online exposure while keeping a lid on costs, are looking beyond Internet search engines such as Google and Yahoo to find new places for their search ads.
The trend reflects a change in the way consumers are navigating the Web. More online searches now take place on YouTube, the popular video site owned by Google, than on Yahoo, the No. 2 Web-search property. The change has companies including Pizza Hut, Universal Pictures and Monster.com rethinking their search marketing strategies.
Even as No. 1 search engine Google's share of the online ad market -- including search ads -- continues to grow, marketers have started shifting ad purchases to other digital media, from social-networking sites to mobile phones. "Search is being redefined in a lot of different ways," says Peter Hershberg, managing partner at Reprise Media, a search marketing agency owned by Interpublic Group.
In search-engine advertising, marketers bid on key words in a continuous auction. When a consumer searches for any of the words, the marketer's ad appears above or next to the results, depending on the amount the company bids and an algorithm the search engines use to determine an ad's relevance to a particular search.
For the past few years Pizza Hut has bought ads on the major search engines tied to pizza-related searches, such as "cheese pizza" and "pizza delivery." Placing bids on those terms pits the Yum Brands restaurant chain against many competitors, including Domino's Pizza, Papa John's International and even local pizzerias, which have made search advertising an important piece of their own marketing. The auction system for the ads ultimately increases the price each pizza marketer pays when a consumer clicks on an ad.
Lately, Pizza Hut has started working with its agency, WPP's Group M Search, to expand its search-ad buys to new areas. The chain started buying mobile search ads to pitch its products. And to publicize the launch of a new whole-grain pizza, Pizza Hut is creating a promotion and buying ads through Facebook. While the Facebook ads aren't technically search ads, they are part of a broader effort to boost the company's profile in the nonpaid search results consumers get when seeking online information.
Over the past decade, search has evolved into the biggest category of online ad spending in the
On Facebook and MySpace, marketers don't buy ads tied to search terms. Instead, the ads are linked to information that users reveal about themselves on the sites, such as their age, hobbies or other personal interests.
Universal Pictures, a unit of General Electric, has started working with its digital agency 360i to buy sponsored video ads on YouTube to promote its recent film releases. Recent YouTube searches for "horror film" or "scary movie," for instance, display a link to a sponsored video for the supernatural thriller "The Unborn." Clicking on the ad takes visitors to a spot on YouTube where they can watch a movie trailer or other promotions for the film.
Job-listing site Monster.com, meanwhile, is testing a search-ad program for mobile searches done on the iPhone. "It just seemed like a no-brainer, that we would want to be able to access users on their smartphones and do that through a proven environment," says John Federico, vice president of global media at Monster.com.
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