Posts Tagged ‘WPP Group’

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.

Time the avenger

Thursday, January 7th, 2010

Sir Martin Sorrell, chairman-CEO of WPP Group and one of the world’s most powerful ad men, explains in an interview with Sparksheet, why online ad spending is growing so slowly compared to users’ adoption of life online:

People take time to change. They might not get it yet. You become the CEO of a company and it’s taken you 25 years, and the last thing you want in your last four or five years is violent change. You want things to go on just as they have before. So it’s a natural human emotion if you like – a human feeling – to resist this change. But it’s only a question of time. Because if consumers are spending 20 or 25 percent of their time online, and clients are spending 12 or 13 percent of their budgets online, there’s a natural gravitational pull to that 25 percent.

“By the time the spend gets to 25 percent, say over the next five years, we’ll probably be spending a third of our time online. And so, as one of our clients said, maybe by then there’ll be less of a gap as we’ll all be used to it. It’s purely a function of time and people’s unwillingness and resistance to change.”

Sorrell’s key point also explains newspapers’ slow adoption of online media: “You become the CEO of a company and it’s taken you 25 years, and the last thing you want in your last four or five years is violent change. You want things to go on just as they have before.”

In the interview, Sorrell also endorse charging for news  online, advertising via product placement and a need for airlines to increase their “investment in the soft touches – video, food, etc.”