Archive for the ‘Advertising’ Category

Print continues to bleed newspapers

Friday, June 3rd, 2011

Newspaper ad revenue continues its slide in first quarter numbers released this week showing a drop of 9.48 percent in print revenue that struggles up to an overall fall of 7 percent when it’s levened by gains in online.

Revenues from online sales increased 10.6 percent to $807.9 million, according to Newspaper Association of America numbers, but even that was down from a 14 percent gain in the final quarter of 2010.

This quarter’s $4.7 billion in print revenue is off 55 percent from the first quarter of 2006, making it the 20th straight quarter of year-over-year print revenue declines.

Alan D. Mutter of Reflections of a Newsosaur called the news “an unexpectedly sharp decline” and said “newspapers now appear to be entering the sixth year of an unprecedented collapse.”

Eric Sass at Media Daily News said then numbers “suggest that newspaper print ad revenues are locked into a permanent, long-term decline.”

Revenue from online advertising represented a 14.5 percent share of total newspaper ad dollars in the first quarter of the year, an all-time high.

On the print side, national ads dropped 11 percent, retail declined 9.5 percent, and classifieds slid 8.15 percent.

PBS changing commercial-free approach

Tuesday, May 31st, 2011

PBS will begin adding commercials to its shows this fall, according to the New York Times.

The public television network, which has always named corporate sponsors and underwriters at the beginning and end of programs, plans to insert “corporate and foundation sponsor spots, promotional messages and branding” into four breaks during “Nova” and “Nature” on Wednesday nights. The new approach would eventually expand night-by-night, PBS officials told member stations at its recent annual meeting in Orlando.

Some shows, like “Masterpiece Theater,” might not be interrupted, but generally the network would go from uninterrupted programming to having no longer than 15 minutes of programming without a commercial break, The Times says.

The current block of sponsor acknowledgements between shows can stretch for eight minutes and cause viewers to look elsewhere, the report points out. The new approach would eliminate downtime between programs.

On the other hand, part of PBS’ appeal is uninterrupted programming, and some suggest the change could hurt donations, which are increasingly important in the face of pressure to cut government funding.

TV’s robust ad sales tied to Facebook

Tuesday, May 17th, 2011

Broadcasters, including networks and cable channels, expect to increase advertising sales by $600 million to $800 million, or even by $1 billion over last spring in this year’s upfront sales for the coming season, The New York Times said Sunday.

The increase, which includes cable channel revenues edging closer to networks’, is in part attributed to discussion of TV moments on Facebook and other social nets.

“TV is about creating ‘water-cooler moments,’ only now they don’t take 12 hours till you’re at school or the office,” said Carolyn Everson, vice president for global marketing solutions at Facebook. “They happen in real time.”

Marketers in categories like cars, fast food, movies, retailing and telecommunications have been increasing ad budgets in recent quarters, the report says.

Networks took in about $500 million to $700 million more in the 2010 upfront market compared to 2009.

Cable channels this year could bring in $9 billion to $9.2 billion, an increase of 10 to 15 percent from their upfront season last year and close or equal to what the broadcast networks are expected to sell, The Times said. (The story doesn’t give a total figure for over-air networks.)

Hispanic television nets could bring in $1.9 billion — up 11.8 percent from last spring.

Newspaper ads still get most action, survey finds

Tuesday, April 19th, 2011

Newspaper advertising is still where people turn to plan, shop and make buying decisions, says a  survey sponsored by the Newspaper Association of America.

The survey (.pdf) of 2,500 adults by Frank N. Magid Associates found that four-in-five adults (79 percent) said they “took action” as a result of newspaper advertising in the past month. This included clipping a coupon, buying something, visiting a website for more information or trying something for the first time.

Preprints are extremely popular, the survey found, with 90 percent of adults saying they regularly or occasionally read Sunday inserts; for the full week the figure stands at 79 percent. Over the course of 30 days, 79 percent of respondents acted on newspaper preprint advertising.

When researchers compared newspaper ads to other media as a “primary medium for checking advertising,” they found newspapers on top at 35 percent, followed by the Internet at 28 percent, direct mail at 12 percent, television at 9 percent and other media in lower single digits.

Online advertising matures, tops old media

Thursday, April 14th, 2011

Online advertising grew at a double-digit rate despite the economy last year and eclipsed newspaper advertising for the first time, the Internet Advertising Bureau and PricewaterhouseCoopers LLP said this week.

Revenue from ads on the Web rose by 15 percent in 2010 to $26 billion, topping newspapers at $22.8 billion, cable TV networks at $22.5 billion, broadcast TV with $17.6 billion and radio with $15.3 billion in advertising revenue, according to the Dow Jones Newswire review of the report.

The  Newspaper Association of America put total print newspaper advertising at $22.795 billion last year, an 8.2 percent drop compared with 2009. Online advertising at newspapers grew by 10.9 percent in 2010, to $3 billion, about 13 percent of total ad income.

“We now have had five consecutive quarters of growth since the great recession impacted interactive advertising in 2009,” Sherrill Mane, IAB’s senior vice president, industry services, said in the IAB’s news release introducing the online revenue report. “The record-breaking revenue in Q4 2010 and the total year indicate that interactive advertising has weathered the storm and then some.”

Search is still the largest online ad category with 46 percent of revenue, but display advertising on the Web grew by 24 percent “in a sign that major brands are growing more comfortable with the medium as a place to invest their marketing dollars.”

Turner cable tying ads to shows’ content

Monday, April 11th, 2011

Time Warner has spent four years developing the ability to place commercials written to play off of a precise moment in the story of the show they run in for its Turner channels, Ad Age reports. The idea is to “make … commercials more indistinguishable from the programs they … interrupt.”

“Turner is ‘tagging’ specific moments in movies and series, trying to find dialogue, action or themes that echo a message an advertiser might like to promote, and then creating related ad vignettes that’ll appear in the spaces between when a program segment ends and a commercial break begins,” the magazine says.

The Turner cable project is targeting advertisers in programs on TBS, TNT and Tru.

For example, an ad that shows men hitting golf balls at a range would be created to run during TNT’s “Men of a Certain Age,” in which the lead character played by Ray Romano is trying to make the Senior Tour.

Over at AMC, they ran commercials for Unilever products during “Mad Men” last season that copied the style of the show and, like the show, were set at an early 1960s-era ad agency.

A source told Ad Age that the Turner cable unit has invested a “seven-figure sum” building new software and hiring staff to tag specific segments in movies and TV shows run on the various channels.

Viewers are 25 percent more receptive to ads that play off of  a show’s content compared to standard commercials, research conducted for Turner found.

A viewer “could be zooming through” with a DVR, but if the advertising looks like the content the viewer tuned in to see in the first place, “they are trained to stop and watch it,” said Linda Yaccarino, exec VP and chief operating officer of Turner Entertainment ad sales, marketing and acquisitions.

News sites: Will annoy for cash

Monday, April 11th, 2011

Media Bistro’s 10,000 Words blog presents 5 Annoying News Site Ads and Why to Avoid Them, saying newspapers are hurting themselves with their online ads.

“It’s one thing to sell advertisements, and it’s another thing to annoy your visitors with them,” writes Meranda Watling. “Want to know the easiest way to get a reader to exit a webpage? Post an ad that detracts from your content and talks (or sings — true story), jumps in the way of the content, moves around so it can’t be closed, crashes browsers or floods users’ CPUs with an abundance of pop-overs and -unders complete with seizure-inducing animation and headache-inducing jingles.”

Local newspapers odd man out in recovery

Friday, March 18th, 2011

A continuing decline in local advertising made newspapers the only ad-supported medium not to benefit from last year’s economic recovery, says a study released Thursday by Kantar Media, a unit of WPP that tracks marketing activity in major media.

The study says total advertising revenue increased in the final quarter of 2010, which represents a full year of gains when compared to 2009 numbers, the New York Times said.

The study found a 6.5 percent increase in revenue compared with 2009. Ad spending fell 12.3 percent in 2009 compared to 2008.

Newspapers, with a decline of 3.5 percent overall, “was the sole category to suffer a decline last year compared with 2009,” the Times says.

“[G]ains in ad spending in national newspapers, up 2.7 percent, and Spanish-language newspapers, up 2 percent, could not overcome the decline in ad spending in local newspapers, which was 4.6 percent.”

Television grew by 10.3 percent compared with 2009. Internet display ads were up 9.9 percent. Outdoor media was up 9.6 percent. Radio grew by 7.6 percent. Free-standing coupon inserts were up 5.4 percent. Magazines saw 2.9 percent growth.

Automotive advertising, a local newspaper staple, was the category of advertising showing the most growth. It grew 19.8 percent compared with 2009, the newspaper said. Ads from auto dealers climbed 26.3 percent and ads from automakers increased 16.4 percent.

Newspaper ad revenue at 25-year low

Thursday, March 17th, 2011

Though the slide has slowed, the $26 billion spent on newspaper ads last year represents  a 25-year low, according to figures released Tuesday by the Newspaper Association of America.

The industry took in $25 billion in ad revenue in 1985, the Associated Press says.

“While the economy has slowly improved since 2009, newspaper ad sales continue to wane due to customers’ shift toward online advertising. Newspaper advertising totaled $7.3 billion in the last three months of 2010, down 4.7 percent from the prior year.”

Online ad revenue was up 10.9 percent last year to $3.04 billion after two years of decline, says Radio & Television Business Report. “All other ad categories were negative, although they did not repeat the double-digit percentage declines seen for two straight years (three for classified). National advertising fell 4.6 percent to $4.22 billion; retail was off 9.1 percent to $12.93 billion; and classified dropped 8.6 percent to $5.65 billion.”

NAA President and CEO John Sturm said advertising has shown signs of a continued turnaround and an essential repositioning. “Newspapers – in print and digital form – remain the largest source of original, high-quality news and information in the United States, reaching nearly two-thirds of all adult Internet users and attracting more than 164 million people who read a newspaper in print or online each and every week.”

IAB unveils new online ad formats

Monday, February 28th, 2011

Six new online ad designs described as  “fairly large” and including “many high-resolution and interactive elements” have been sanctioned by the Interactive Advertising Bureau and are soon to begin showing up everywhere, Advertising Age says.

The new ads, illustrated here, were chosen in a competition that drew 36 entries from 24 companies. The winning entries come from AOL, Unicast, Google, Pictela, Genex and Microsoft.

The IAB, which administers a universal agreement on the size, shape and function of online ads, says it put out a call in September for new ads that would “encourage engagement with viewers on their terms and allow people to participate confidently with brands.” The new formats support such interactive elements as movie trailers and videos, games, quizzes and shopping modules, Ad Age says.

The new ad units are:

The Portrait, a 300×1050 canvas format with state-of-the-art plug-and-play functionality, which was developed by AOL.

The Slider, an overlay unit on the bottom of a page that is like a touchscreen, prompting users to slide the entire page over to unveil “a full branded experience,” which was developed by Unicast & Mediamind.

The Billboard, by Google/YouTube,which runs the full width of the page and has full close-ability.

The Filmstrip, from Microsoft, a 300×3000 canvas viewable through a 300×600 window and fully controlled by the viewer.

The Pushdown, a pushdown unit by Pictela with broad functionality via a visual toolbar.

The Sidekick Expandable, a format that launches from a standard ad and pushes page content leftward, revealing a large, functional canvas. It was developed by Unicast.

The IAB will evaluate the six new ad formats to see which ones gain a wider acceptance with online publishers, and those that do will become a part of IAB’s official roster.

The IAB also said today that 11 of the 18 current IAB standard ad units will be retired because they are no longer commonly bought and offered throughout the market.