Archive for the ‘Television’ Category

Ad spending fell 12.3 percent in 2009

Thursday, March 18th, 2010

We’ve been out-of-pocket for a few days and we’re shoveling through the e-mail. Most significant so far is the report from Kantar Media, formerly known as TNS Media Intelligence.

“Ad spending in 2009 came in at $125.3 billion, a drop of 12.3 percent compared to the prior year,” the report says, according to Crain’s New York Business.

“The good news was that fourth-quarter ad spending fell by only 6 percent. In addition, preliminary numbers for the first quarter of 2010 show most media categories doing better than they were a year ago, said Jon Swallen, a senior vice president at Kantar Media.”

This is worse than a previous report from Medill Reports that said overall U.S. advertising spending was down 9 percent for the year last year. (Kantar isn’t limiting its number to the U.S., perhaps.)

According to Kantar Media, “radio fell 20.3 percent, local television plunged 23.7 percent, magazines dropped 17.4 percent and newspapers 19.7 percent.” Network television was down 7.6 percent for the year but turned around in the fourth quarter to rise 4.1 percent. Cable TV was  down just 1.4 percent.

Internet display advertising rose 7.3 percent.

“The biggest turnaround may be taking place among newspapers,” Crain’s says. “According to Mr. Swallen, advertising is flat so far this year, which puts the category on track to record its best quarter in two-and-a-half years.”

Targeted TV commericals advance in testing

Saturday, February 20th, 2010

Almost a third fewer TV commercials were skipped in a test of targeted ads conducted by the cable giant Comcast in Baltimore last year, Ad Week says. The ability to aim commercial spots at specific households “creates billions of dollars in the TV marketplace per year,” one official said.

The test used technology developed by Invidi to deliver “different ads within the same cable network commercial breaks to different household groupings, based on segmentation data provided by data-management firm Experian,” the report says. Viewers fast-forwarded through 32 percent fewer commercials.

“It was 65 percent more efficient to buy an addressable spot to reach the advertiser’s true audience, even factoring into the calculation a premium for the seller,” said Michael Kubin, an executive vice president with Invidi. And that efficiency, he said, “on a national basis creates billions of dollars in the TV marketplace per year.”

Kubin said this second test of the system proves it works and indicates that the next step is to bring it to the marketplace.

Chuck Ross of TV Week calls the test results “nothing short of phenomenal” and his headline writer calls the test a “game changer.”

More commercials likely for online TV

Wednesday, February 10th, 2010

A move by Nielsen, the television ratings giant, could result in online presentations of TV programs carrying just as many commercials as broadcast does, according to Advertising Age.

Nielsen’s new methodology to compile data that take into account viewing of commercials that run in a particular show, online or off, could be in place by September so it can be used for ad sales in February 2011.  “If this system were adopted en masse — and it’s not clear that it would be — online viewing might be crammed just as full of commercials as the more traditional TV-watching experience,” Ad Age says.

And, while online sites like Hulu and Disney’s ABC.com typically have few ads, “many TV executives say these methods don’t bring much, if any, profit — and therefore cannot continue.”

It’s a new Super Bowl record!

Tuesday, February 9th, 2010

One count from the Super Bowl says there was an all-time record “nearly 39-and-a-half minutes” of ads during the game, about 90 seconds more than what was shown in 2009, says Media Daily News.

The half-hour-plus included 66 ads run by 41 different marketers (excluding NFL “house” ads), according to Kantar Media. On top of that was about eight-and-a-half minutes of CBS promos — also about 90 seconds more than 2009.

The game itself was 30 minutes shorter than in 2009, the report says.

In addition to the record number of commercials, the viewership numbering 106.5 million beat the 27-year-old record held by the final episode of “M*A*S*H,” and there were many records set during the sporting competition itself, as anyone who watched the CBS broadcast can surely tell you.

Also, “Multiple analyses were issued Monday about which ads were the most popular. … [V]otes cast via Twitter and Facebook … found that a Snickers spot with Betty White topped the charts, while one for Google about finding love in Paris was second,” Media Daily News says.

Newspapers get small share of political ads

Monday, February 8th, 2010

Newspapers can expect to see less than 8 percent of the $4.2 billion to be spent on political advertising in 2010, a new report from Borrell Associates says. That share comes out to $329 million.

Most will go to broadcast TV with 61 percent, or $2.6 billion, Editor & Publisher’s reading of the report says, followed by cable TV at a very distant second with a 9.1 percent share. Only 1 percent, or $45 million, of political dollars is expected to be spent on Internet ads — 73 percent more than in 2008.

Last year was relatively quiet on the political front, yet spending outpaced 2000 levels,” E&P says. “The recent Supreme Court ruling that allows corporations to now spend on politics caused Borrell analysts to bump up its forecast 10 percent.”

The Fitz & Jen blog charts the numbers for each medium.

Garden State media look forward to pot revenues

Thursday, January 21st, 2010

New Jersey’s legalization of medical marijuana should translate into new advertising revenue for traditional media outlets as well as ad agencies, Advertising Age says.

The first six dispensaries have to be nonprofits, which is expected to keep prices down, but then commercial concerns can get in on the trade. ” I can very well envision commercials, much like for Levitra or Claritin, on the airways,” said State Assemblyman Reed Gusciora (D-Princeton), who co-sponsored the bill to legalize medical marijuana.

“Lou Stancampiano, VP at The Jersey Journal, said there is potential for newspaper revenue from the category ‘if it moves into distribution of traditional promoters, like chain pharmacies, people who have a tendency to promote.'” Stancampiano added that hospitals are trdaitionally big newspaper advertisers, and specifically named Jersey City Medical Center as a potential medical marijuana distributor.

Said Jim Rothenberg, executive VP-creative director for D&R Advertising in Fort Lee, “What media they’ll get into, I’m not sure, but I am sure there will be some wonderful creative done.”

Interactive TV commercials show strong results

Friday, January 15th, 2010

Interactive television commercials — through which viewers could click on their remotes to receive more information, product samples or gift certificates from the advertisers — worked better than expected in a trial last fall in the northeast, Advertising Age says.

Cablevision ran the trial with ads from Gillette, Benjamin Moore, retailer Century 21, Unilever and Colgate-Palmolive Co. and its 3.1 million subscribers in the New York, Connecticut and New Jersey area.

“Responses were strong enough that the campaigns were taken off the air after an average of half their scheduled runs after advertisers were caught low on promotional inventory, according to Cablevision and marketers,” Ad Age says.

“The campaigns’ results suggest that TV can in fact deliver Web-like metrics and interactive opportunities — and that consumers are willing to use their TVs like computers.”

Large retailers do better in print, study finds

Tuesday, January 5th, 2010

Large retailers get more for their money with print ads than they do on TV or online, a study conducted in the UK found, according to the Times of London.

In fact, print ads are more than twice as effective as television for large clothing stores, big grocery retailers, fashion retailers and department stores, Microsoft Advertising concluded.

The anonymous study participants included 24 of the top 100 UK companies in terms of media spending.

“The study recommended retailers increased online and print advertising budgets by 10 percent and decreased television budgets by that amount,” the newspaper said.

Broadcast TV model outlives its prime time

Tuesday, December 29th, 2009

The end of free TV as Americans have known it since the 1940s could be on its way, says Associated Press business writer Andrew Vanacore.

“The business model is unraveling at ABC, CBS, NBC and Fox and the local stations that carry the networks’ programming,” he writes. “Cable TV and the Web have fractured the audience for free TV and siphoned its ad dollars. The recession has squeezed advertising further, forcing broadcasters to accelerate their push for new revenue to pay for programming.”

While broadcast networks have relied on advertising for revenue, cable channels have charged fees to carriers — cable companies and the like — and sold advertising. Networks have begun charging carriers, too, and could make even more money without their affiliates.

“Pay-TV providers are paying the networks only for the stations the networks own. That amounts to a little less than a third of the TV audience, which means local affiliates recoup two-thirds of the fees. If a network operated purely as a cable channel and cut the affiliates out, the network could get the fees for the entire pay-TV audience.”

Affiliates that manage to stay in business would be independent stations, filling the broadcast day on their own with local news and programming, and syndicated material

Because of complicated affiliate contracts, any shift would take years, he says.

Journalism seen winning out online

Monday, December 21st, 2009

The New York Times’ David Carr sees hope in the evolution of online news media.

“Blogs and new-media sites are cartoonishly written off as places where people write up the soup they just ate, but in the past year, many sites have added muscle and resources to the pursuit of news,” he wrote in Sunday’s paper. “Everyone knows about the reporting assets and influence of Politico, but you know things have changed when Gawker, the attitudinous Manhattan media blog, is hiring the kind of reporters who pick up the phone. …

“And just as new media have absorbed the enduring values of traditional media — developing sources, making phone calls [as noted earlier] — so more established players are adopting the tools of the insurgency. For instance, traditional media outlets are not waiting for the much-hyped Apple tablet to land next year before coming up with content that might soar on the device.”

“The long-in-the-tooth technologies still have plenty of life in them,” he says, citing successes in newspapers, TV and even among laid-off journalists.