|HOME||MEDIAVILLAGE.com||WOMEN ADVANCING||HOOKED UP||MEMBERSHIP INFO||MEMBER COMPANIES||MEDIA BUSINESS REPORT||ECONOMIC FORECASTS||RESEARCH|
Published: March 26, 2008 at 10:03 PM GMT
Last Updated: April 7, 2008 at 10:03 PM GMT
Assuming this week's release of fourth quarter GDP data confirms an official recessionary economy, marketers, media companies, economists and unofficial economic pundits will weigh in with appropriately reactionary forecasts of ad industry doom and gloom.
There are certainly indications that the media community should be concerned. Automotive forecasts are dismal at best and ad spending in this critically important local and national ad category is down. Local political ad spending is not as robust as expected, as politicians have discovered the power and value of free online communications, especially YouTube. Both the financial and real estate industries are being severely impacted and ad spending curtailed, which again is more a print and local issue.
Network TV scatter pricing, strong throughout 2007, has softened. Online advertising requests-for-proposals (avails) are down compared to early 2007. But while newspapers, local television and radio stations, and even television networks cannot look forward to full-year 2008 revenues with a positive outlook, the overall ad economy remains reasonably robust.
2008 will most certainly be a year when the rich get richer. Media companies that have invested in relevant multi-platform capabilities and that can deliver targeted audiences across multiple branded media assets will attract the lion's share of growth in 2008 and into the foreseeable future. Those media companies that have been slow to market, playing the wait-and-see game before investing in new media assets, will suffer from the economic slowdown.
For mega-media conglomerates like News Corp, Time Warner and Disney, pressures to integrate cross-media assets will take on a new urgency as the merger of digital distribution with powerful traditional media brands and reach gains critical importance for expanding relationships with the largest marketers. In this marketplace, the unexpectedly aggressive efforts of the broadcast networks over the past 24-months will reap positive rewards. Although NBC Universal's acquisition of iVillage has been questioned, it ultimately will prove to be a valuable asset for extending the NBCU broadcast and cable networks' advertiser offerings. And while Fox-TV has been slow to develop integrated sales and marketing initiatives with News Corp's Interactive assets, and especially MySpace, integration will be forced by marketers and agencies who are demanding innovative tactics for delivering measurable results for their campaigns.
Similarly, Viacom has quietly cobbled together a valuable portfolio of social networks, gaming sites and virtual world sites that are unmatched in the media world. In the next 12 to 24 months, the pace of acquisitions by major media companies will accelerate as traditional players realize the critical importance of platform extensions. They will also elevate within their organizations those executives who understand and have experience in both traditional and digital media, and who understand the marketing requirements of advertisers beyond reach and media cost efficiencies. Executives with promotion, direct marketing, event marketing and public affairs experience will be essential to the growth of media companies as well as media agencies.
Among the leading online and digital media companies, the dearth of sales executives experienced in the traditional media marketplace will be an albatross, slowing their progress and acceptance. Filling executive roles with skilled network sales executives, who also have proven online sales credentials, will be a priority.
The decision last week by General Motors to allocate half of its annual $3 billion advertising budget to the Internet within the next three years is sending a clear message to all media. Rather than a death knell to newspapers and network TV, it should be a clarion call to all media to accelerate cross-platform initiatives. GM's strange announcement, which was preceded by the departure of long-time GM Planworks' executive Dennis Donlin, suggests there is sufficient relevant inventory to fulfill the auto maker's online objectives. If the company is to increase its online ad spend seven times 2007 levels of an estimated $200 million, more good real estate will be required and it's likely to come primarily on the sites of established media brands. In 2007, GM spent an estimated $1.2 billion on TV ads, down nearly 12% from the previous year. If Cadillac, Chevrolet, Pontiac, Saturn, GM Trucks and other GM brands move too aggressively away from long-established TV franchises and sponsorship rights, especially in sports, other car makers will move in quickly and GM's market share will drop like an anchor, leaving the company dead in the water. It's more likely the company will look to extend their most valued franchises across the digital landscape.
Joel Ewanick, Marketing VP for Hyundai Motor America, says, "Online is getting to the point where it may be more important than the 30-second spot." I disagree. But advertisers will demand more accountability from their 30-second spots, and will look for ways to bring their TV and online budgets together in more measurable and convergent models.
Last week, NBC Universal paid $6 million for a 35% stake in Radical Media's driverTV, which is a perfect example of the type of strategic initiatives traditional media companies will require to increase their market share as more and more marketers demand digital integration and direct marketing infrastructures. The driverTV web site and VOD channel program three-minute videos underwritten by automakers. "There is growing need for the automotive industry to find engaging ways to reach potential buyers with information, and the driverTV model has been very successful in bringing together car companies and those in the market for new vehicles.," said George Kliavkoff, chief digital officer for NBC Universal. Without NBCU's traditional networks, driverTV was another website struggling for credibility. With the promotional clout of NBC, Bravo, Oxygen, USA, Sci Fi and NBC's online assets, driverTV becomes a powerful marketing vehicle for the auto industry. Its why, in a softening economy, the rich will get richer.
Stuart Elliott Revives "20 Questions" -- A Popular Holiday Tradition
One of the best friends of a columnist, apart from an elastic deadline, is the perennial feature, and I was known for one during my more than two decades writing for my previous employer. It was called "20 Questions," a column that would run before or after major holidays. Since we're about to celebrate Thanksgiving I thought it would be fun to revive it for my MediaVillage audience.
Pepsi on “Empire”: Coolest. Sponsor. Integration. Ever.
Call it the wave of the future, or a blast from the past. Pepsi’s sponsorship of Fox’s hit primetime serial “Empire” became virtually DVR-proof on this week’s episode while also evoking that long-ago era of television when advertisers were integral to the presentation and content of programming.
Office Smackdown! Baby Boomers vs. Millennials and Vice Versa
Have you noticed a difference (or ten) between Baby Boomers and Millennials in the workplace (and everyplace else, for that matter)? Especially the younger end of the former and the older segment of the latter? Of course you have -- and you aren't the only one.
SMI: Television Roars Back to Life; Digital Questionable?
Fresh off the back of soft results for many media owners in the third quarter of this year, the start of the new broadcast year has delivered some very heartening news for the television industry. Strong ad sales results for both the broadcast and cable sector helped the market to its best result of the year, with the total market up 15% compared to the same period last year.
DPAA: Audience Targeting -- Are You Missing the Mark?
With years of media fragmentation and increasing demands for better ROI, audience targeting has never been more valuable to marketers than it is today. The value for the marketers employing it, of course, includes better measurement and message delivery – and for those who fail to take advantage, smaller budgets or shorter careers.
Ten Expert Practices for Optimizing Team Performance
Visionary leaders are agents of change. Highly observant and great at reading situations, these managers know how to motivate teams to achieve new goals in the pursuit of excellence.
Net Neutrality Work-Arounds; Cutting Cords, Any Cords!
So you’ve got a MVPD subscription -- whether cable, satellite or telco -- plus broadband access and you’d like to watch video on some device or another … but you don’t know what exactly you’d like to watch and you don’t really feel like surfing 7,842 channels and web sites to find out what’s on and/or available. What do you do? Panic? Hope whatever MVPD or broadband provider you have gets smart enough to produce a guide that actually, uh, guides? Well, there are already a few gleams in the gloom out there.
NNN: When a Crisis Hits, Smart Marketers Like VW Know Where to Turn
Yesterday, Volkswagen began a print campaign in 13 newspapers across America. The purpose: To regain the trust of their customers following news of their emission issues. In the ad, CEO Michael Horn extends his apology and a special offer to those affected. Specifically, customers who qualify will be given a $500 prepaid Visa Card along with a $500 dealership card. This is the first official, public gesture that the company has made to address the consumer crisis and here at the Newspaper National Network we were honored to work with them in executing the initiative.
ABC Sales President Geri Wang on Media, Measurement and Mentoring
Geri Wang started as a physical therapy major in college but later changed to communications. Upon graduation she landed her first job working for Helen Johnston at Grey Advertising as a media research analyst. From there Geri was recruited by ABC, where she excelled. She is currently President of Sales, leading a team of nearly 300, and she is responsible for advertising sales and integrated marketing across the entire ABC portfolio including ABC Primetime, Daytime, News, Late-Night and Digital; the Disney/ABC Domestic Television Syndication Group; Fusion, and ABC Sales Development.
Unlike Certain Ads, This Column is Viewable
It seems that most weeks bring yet another jaw-dropping story from the wacky world of digital advertising. We’ve had bots, fraud, trading desks buying inventory from themselves and a host of other wonders. Last week though brought an excellent example of the genre, for which I’m grateful to Linda Holliday, the CEO of CITIA.com who brought it to my attention.
Driverless Cars and the New Automobile Era
We are now about 130 years into the automobile era. Starting with Karl Benz’s patent in the 1880s the automobile quickly became widespread with Henry Ford’s model of mass production scaling up the market 100 years ago.
MediaBizBuzz: Fox, Univision, Turner Broadcasting, Spotify and More
A roundup of the week's key news from MediaVillage member companies and trends from the wider media industry. This week, networks hit by fantasy sports woes, Fox gets creative with branding, and both Edward Snowden and "South Park" join the ad blocking debate.
Gender News Weekly: Barbie is for Boys, Too
"Inspired by Jack Myers’ upcoming book “The Future of Men: Masculinity in the Twenty-First Century,” this is a weekly blog series focused on gender equality, gender politics and the shift in gender norms in business and culture. Read on for this week’s news roundup."
Mindshare on Movember: Your Beard Has Good Intentions
This week on Mindshare’s Culture Vulture Live: Mike Yablonski talks about Movember -- that time of year when men let their facial hair grow out for a good cause.
IAB Ad Technology Marketplace – Spotlight: Programmatic Automation & Creativity
May 11, 2015 New York City