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.
Monday, March 30, 2009
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
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