tag:blogger.com,1999:blog-297249712024-03-13T07:12:15.846-04:00The Future of TV AdvertisingTracks trends in traditional television ad sales and the impact of new technologies, new competition.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.comBlogger54125tag:blogger.com,1999:blog-29724971.post-49167480005151475542007-06-25T10:04:00.001-04:002007-06-25T10:11:01.105-04:00Upfront is "Up"Hard to believe, but the networks pulled out, <a href="http://adage.com/mediaworks/article.php?article_id=118743">according to <span class="blsp-spelling-error" id="SPELLING_ERROR_0">AdAge</span></a>, an increase in upfront commitments. The take increased 2.7% over last year.<br /><br />This happened despite the new ratings indicating an audience decline of 5%-10%. As I <a href="http://thefutureoftvadvertising.blogspot.com/2007/06/restaurant-raises-prices-due-to-drop-in.html">mentioned previously</a>, the networks' response of raising rates actually worked! <br /><br />The argument the networks used was "Hey, you can't get to mass audiences any better". They invoked what I call "the <em>reach</em> premium". The argument is that if you want to cover a large percentage of the US audience with your <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">campaign</span>, you need to buy those with the largest reach to efficiently ensure they get the message. Since there are only so many networks with big reach, they can ask for a premium.<br /><br />Will local television be able to hold <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">the</span> line on revenues with local advertisers? We'll see.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-61327040085081887602007-06-18T15:34:00.000-04:002007-06-18T15:47:31.690-04:00Read Ephron on MediaAn occasional email I get in my inbox comes from Erwin <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Ephron</span>, who writes about media planning. His <a href="http://www.ephrononmedia.com/article_archive/cover_article.asp">latest post </a>says what everyone in <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">the</span> game knows, and I have been warning advertisers since I started this blog.<br /><br />He wonders why the <span class="blsp-spelling-error" id="SPELLING_ERROR_2">Upfronts</span> are not "Open, Candid, Honest", like you can get from eBay (Google, <span class="blsp-spelling-error" id="SPELLING_ERROR_3">MSN</span>, etc.).<br /><br />In the national buying party called Upfront, <span class="blsp-spelling-error" id="SPELLING_ERROR_4">Ephron</span> says:<br /><blockquote>"Most advertisers do not know the market price of TV, they know only what they are paying compared to last year. A real dollars-paid database like the performance monitoring service <span class="blsp-spelling-error" id="SPELLING_ERROR_5">MPMA</span>’s shows cost differences of 30% for identical TV inventory bought by different advertisers, Upfront."</blockquote><br />In fact, sellers' entire planning process centers around what each advertiser paid last year --- no thought of a transparent market!<br /><br />In fact, at a local TV level, prices can vary by more than 100%! In other words, because TV ad sales are NOT "Open, Candid, Honest", sellers can charge what they can get, and non-vigilant advertisers get fleeced.<br /><br />No wonder that as smaller advertisers who sense they are getting fleeced are fleeing to the aforementioned Open, Candid, Honest alternatives, like Internet.<br /><br />The sales tactics practiced by the TV sales organizations have to be changed to allow them to thrive in the accountable ad market ahead.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-49718277193414106222007-06-14T08:07:00.000-04:002007-06-14T08:15:23.689-04:00Restaurant Raises Prices Due to Drop in Quality!<span class="blsp-spelling-error" id="SPELLING_ERROR_0">Ok</span>. That headline is bogus, but the one in Advertising Age is not! <a href="http://adage.com/mediaworks/article.php?article_id=117276">Networks Ask for Steep Increases to Make Up for Ratings Shortfall</a>!<br /><br />Seems that the new (more accurate) ratings system from <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">Nielsen</span> <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">shows</span> that people actually do skip ads with their <span class="blsp-spelling-error" id="SPELLING_ERROR_3">DVRs</span>! So the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">networks</span> are say: "Well then, you need to pay us more per (actual) thousand!"<br /><br />The article closes with:<br /><br /><blockquote>"New technology is also giving marketers other venues in which to place their ads, including blogs and e-mail. Due in part to some of these factors, last year's upfront take was one of the lowest in several years, estimated at $8.5 billion to $9 billion, and marked the second straight year where networks took in declining volumes. "</blockquote><br /><br />So, why would you pay more, for less?Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-83767626436607824552007-06-04T17:21:00.000-04:002007-06-14T08:19:40.984-04:00Now That's the Idea! Local TV on YouTube<a href="http://tvweek.com/news.cms?newsId=12142"><span class="blsp-spelling-error" id="SPELLING_ERROR_0">TV Week</span> reports </a>that Hearst-Argyle, arguably one of the more forward-thinking TV groups, has signed a deal with <span class="blsp-spelling-error" id="SPELLING_ERROR_1">YouTube</span> to allow its real hard asset: <strong>local content</strong>, to be broadcast on <span class="blsp-spelling-error" id="SPELLING_ERROR_2">YouTube</span>.<br /><br />As I have said many times before, local TV has to re-think itself. Viewers are drifting away. Advertisers want a more accountable, measurable relationship.<br /><br />This type of move does both. It places unique assets in a popular medium, where advertisers really can interact <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">with</span> their audience .. and get measurements that are "real" ... for <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">the</span> investments they make.<br /><br />This is the right step. Expect more from all <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">the</span> others.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-51695437789815336022007-05-31T13:14:00.000-04:002007-05-31T13:16:55.272-04:00Now Cable Viewing DeclinesCatch the <a href="http://www.variety.com/article/VR1117965994.html?categoryid=14&cs=1">Variety article</a>.<br /><br /><blockquote><p>For cable TV, May proved to be the cruelest month, at least in the Nielsen<br />ratings: Nine of the top-10 ad-supported networks declined in number of total<br />viewers, five by double digits</p><blockquote>This isn't <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">supposed</span> to be happening (yet) ...<br /></blockquote></blockquote>Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-78078728544023581702007-05-29T13:03:00.000-04:002007-05-29T13:09:12.573-04:00Ratings Slip -- Again!Broadcast and Cable is running <a href="http://www.broadcastingcable.com/article/CA6446817.html">a story </a>about the recent ratings decline.<br /><br />The reasons are conjecture, and do not acknowledge the real underlying problem with broadcast media.<br /><br />"The time zone change" --- wow, now that's creative! <br />"Creative difficulties" --- duh?<br />"American Idol" --- even though they were down 7% AND were able to increase their rates!<br /><br />The underlying issues are a bad pincer setup --- a) increased competition for, and fracturing of the audiences, as they have many many many choices for entertainment.<br />b) Advertisers, especially small and medium advertisers, get much more accountability, feedback and optimization of their buys when they go to digital media.<br /><br />Oh yea, and digital advertising has passed $17B a year.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-12389880244340679602007-05-22T07:57:00.000-04:002007-05-22T08:01:44.757-04:00Younger Viewers Trust On-line More Than TV<span class="blsp-spelling-error" id="SPELLING_ERROR_0">Comscore</span> <a href="http://www.comscore.com/blog/2007/05/younger_consumers_receptive_to.html">publishes a report </a>showing that younger viewers trust ads associated with on-line more than those on TV. While TV is more <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">noticed</span> (in your face!), the on-line ads carry more trust.<br /><br />Couple that with the fact that viewer measurement is much deeper (for all but the big big advertisers) on-line, it is no wonder that the on-line world is seeing a resurgence in values ... viz: all <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">the</span> M&A activity.<br /><br />Again, TV can/should respond by pressing harder on accountability and measurement, but larges factions (especially smaller market sales forces) are well tuned to selling just the opposite!Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-52133780568809532292007-05-07T08:01:00.000-04:002007-05-07T08:06:31.393-04:00Now This Is Interesting -- Magazines Held Accountable?!<span class="blsp-spelling-error" id="SPELLING_ERROR_0">MediaVest</span> USA has <a href="http://adage.com/mediaworks/article.php?article_id=116544">been reported </a>to demand <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">that</span> magazines report actual circulation statistics <strong>by issue</strong>, not just averages!<br /><br />Golly! You mean advertisers want to <span class="blsp-spelling-error" id="SPELLING_ERROR_2">know</span> if they got what they paid for?? Shock!<br /><br />Again, this can happen because <span class="blsp-spelling-error" id="SPELLING_ERROR_3">MediaVest</span> controls $900M of consumer magazine advertising.<br /><br />But, as I always warn, if you <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">are</span> a smaller advertiser, you too should demand full <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">accountability</span> .. and walk to the nearest web advertiser if you don't get it from the traditional media. Remember, the traditional media profits from keeping actual <span class="blsp-spelling-corrected" id="SPELLING_ERROR_6">performance</span> obscure!Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-84843740147384980962007-05-07T07:00:00.000-04:002007-05-07T07:22:05.114-04:00New Granular Approach to Audience Ad MeasurementThe talk of the "up-front", the annual event where major advertisers and agencies commit to annual budgets with the broadcast and cable networks, is the <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Neilsen</span> ratings change.<br /><br /><span class="blsp-spelling-error" id="SPELLING_ERROR_1">Neilsen</span> has traditionally measured audiences for 1/4 hour segments <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">and</span> did not differentiate between the program and the ad. <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">Independent</span> <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">research</span>, and <span class="blsp-spelling-error" id="SPELLING_ERROR_5">everyone's</span> anecdotal <span class="blsp-spelling-corrected" id="SPELLING_ERROR_6">evidence</span>, suggests that ads ad NOT watched as often as the program itself. So <span class="blsp-spelling-error" id="SPELLING_ERROR_7">Neilsen</span> and the industry are slowly moving to a system of <strong>commercial ratings</strong>, where the audience for individual ads are rated.<br /><br />Now that is a LOT of measuring points!!! Every ad in every pod on every TV station and network for every demo!! Oh! Did I mention that <span class="blsp-spelling-error" id="SPELLING_ERROR_8">DVR</span> playback within 7 days will be included as well!<br /><br />The good news: It is a step in the right direction. No intelligent advertiser wants to spend money without some form of measurement. And this provides much more than ever was available before. Big advertisers and agencies have driven this, and will take full advantage, holding the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_9">networks</span> accountable for <span class="blsp-spelling-corrected" id="SPELLING_ERROR_10">delivering</span> <span class="blsp-spelling-corrected" id="SPELLING_ERROR_11">the</span> audiences they paid for.<br /><br />The bad news: I can't see how the data at a local level will be filled in to the extent that local advertisers can use ... or understand and process. There just are not enough measuring points to find out who is watching <span class="blsp-spelling-corrected" id="SPELLING_ERROR_12">the</span> Food network at 2 pm on Wednesday in York, PA. And an advertiser in York <span class="blsp-spelling-error" id="SPELLING_ERROR_13">hasn</span>'t the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_14">wherewith all</span> to audit that spot anyway.<br /><br />The bottom line still remains: If you are a small advertiser ($1M or less in most of the country), beware. You probably don't get what you want and measurement from the media industry is <span class="blsp-spelling-corrected" id="SPELLING_ERROR_15">likely</span> to be obscure. Set up your own measurements .. like how many <span class="blsp-spelling-corrected" id="SPELLING_ERROR_16">people</span> came into the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_17">store</span> after <span class="blsp-spelling-corrected" id="SPELLING_ERROR_18">the</span> ad, a phone in number on <span class="blsp-spelling-corrected" id="SPELLING_ERROR_19">the</span> ad, or something to tell you <span class="blsp-spelling-corrected" id="SPELLING_ERROR_20">the</span> ad worked.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-45583205627190648512007-05-02T06:59:00.000-04:002007-05-02T07:12:01.926-04:00Newspapers Lose paper Readers, Gain Web ReadersNewspapers <a href="http://adage.com/mediaworks/article.php?article_id=116439">lost 2.1% of their circulation in </a>the last 6 months, according to the Audit <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">Bureau</span> of Circulation, and web visitors to newspaper sites was up 5.3%.<br /><br />Now, unfortunately, that 5.3% in no way makes up for the losses ... and is a sign of the times (again, again) for traditional media.<br /><br /><a href="http://kenradio.com/">Ken <span class="blsp-spelling-error" id="SPELLING_ERROR_1">Rutklowski's</span></a> lively daily email carries the headline <strong>User Generated Content Threatens Traditional Media.</strong> According to <span class="blsp-spelling-error" id="SPELLING_ERROR_2">Accenture</span>, media executives are concerned that <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">videos</span> on sites like You-Tube, amateur web photos, etc. are increasingly appealing to younger audiences, and threaten their future.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-23547786191398904612007-04-19T06:42:00.000-04:002007-04-19T06:50:32.161-04:00Google to Sell Radio AdsGoogle Audio? Have you heard about it? You can provide your audio ad to Google, who will place it on regular radio stations.<br /><br />Google <a href="http://adage.com/mediaworks/article.php?article_id=116120">signed a deal </a>with Clear Channel this week that increases their reach to 1600 AM/FM radio stations in the USA.<br /><br />The Clear Channel deal represents about 5% of Clear Channel inventory, quite a bit. The Clear Channel spokesperson said the inventory is not "remnant", but 5% in a small market station is very likely unsold, or given as "bonus" anyway, so the definition of remnant is debatable.<br /><br />This is another step in a good march, where the new media guys like Google and eBay etc are attempting to bring radio and TV advertising to small and medium advertisers in ways that are transparent, measurable and accountable.<br /><br />Don't you think the traditional players could do that themselves and win more advertisers?Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-31012069184609908202007-04-16T06:28:00.000-04:002007-04-19T11:21:18.083-04:00Local TV Measurement Quality is Low (Surprise!)<a href="http://adage.com/mediaworks/article.php?article_id=116111">Ad Age reports </a>that Group M CEO Irwin <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Gotlieb</span> called local <span class="blsp-spelling-error" id="SPELLING_ERROR_1">TV's</span> measurement system the "worst media measurement (systems) that exists in the business".<br /><br />He went further and said that "local broadcast is competing with digital media. Local broadcast will itself be digital media in only a few short years. And yet, we're still dealing with diary measurement? It just doesn't belong there."<br /><br />Let me suggest that local TV has adapted well to not being measured! Much of their advertising comes from local advertisers who have either:<br /><ul><li>crude, but effective, ways of measuring ads, like how many people walked into the auto showroom on Saturday morning, or</li><li>are not sophisticated enough to measure effectiveness, as they replay the ad of themselves to friends and family.</li></ul><p>Much of Local TV is losing the quality advertiser, who demands measurement, and is rapidly moving <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">advertising</span> dollars to media that offers clarity, transparency and better feedback loops. So the local TV ad sales team hunt the yellow page, <span class="blsp-spelling-error" id="SPELLING_ERROR_3">flyer</span> , radio and billboard <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">advertisers,</span> telling they can get a better bang for their buck through TV. The "cloud of war" obfuscates the activity and outcomes, but, short of <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">offering</span> better measurement, this is the way it is.</p>Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-18627313888064222602007-04-10T06:02:00.000-04:002007-04-19T11:21:58.006-04:00eBay Ad Sales Project Hits Major SnagI have been very busy this year on a number of projects and have not been posting at the rate I should have, but I'm back! And boy is there some interesting news!<br /><br />I think one of the most interesting stories was the <a href="http://www.nytimes.com/2007/04/06/business/media/06cable.html?ex=1177128000&en=7714403bada041ec&ei=5070">recent announcement </a>that cable TV is "boycotting" the eBay initiative to sell TV ads "the eBay way" --- an auction.<br /><br />The project was rumoured to be a $50 million initiative, started last year, and was backed by a number of large advertisers, like HP, Intel and Home Depot.<br /><br />But the business has had its legs cut off by ESPN, Turner, Discovery and Lifetime who have "boycotted" the exchange.<br /><br />This is pure <em><strong>hubris</strong></em>! I just love the quotes in the <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Cabletelevision</span> Advertising Bureau's press <a href="http://graphics8.nytimes.com/packages/pdf/business/20070406exchange.pdf">release</a> and the <a href="http://www.nytimes.com/2007/04/06/business/media/06cable.html?ei=5070&en=7714403bada041ec&ex=1177128000&pagewanted=print">NY Times story</a>. "Too narrow", "connectivity issues", "lacked provisions necessary for critical strategic and idea-driven intelligence", "went too far in removing humans from the ad sales process". Even some of the big buyers weighed in, saying that eBay did not allow the integration of promotions into the buying process.<br /><br />As I have said <a href="http://thefutureoftvadvertising.blogspot.com/2006/07/will-media-buying-be-commoditized.html">many times in the past</a>, the sellers of TV spots and the professional buyers do not want the transparency that exists with on-line advertising and will resist efforts to simplify, clarify and <span class="blsp-spelling-error" id="SPELLING_ERROR_1">commoditize</span> transactions.<br /><br />Simply put, this move is just one battle in the continuing war that advertisers and TV ad sales are engaged in. Doesn't it sound like the sellers want less transparency, want the "idea-driven, creative process with promotions" to dominate, while <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">advertisers</span> want to know: "What do I get for what price?"<br /><br />Battle on!Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-86081810081714742972007-02-14T08:31:00.000-05:002007-02-14T08:38:21.638-05:00A Silver Lining For Local TVReuters <a href="http://yahoo.reuters.com/news/articleinvesting.aspx?type=companyNews&storyid=74732+14-Jan-2007+RTRS&WTmodLoc=InvArt-L2-CompanyNews-3">ran a story today </a>quoted a Barron's article, that shows a potential silver lining for local television shareholders.<br /><br />They note the success in gaining retransmission fees from cable and other distributors. This money goes straight to the bottom line.<br /><br />Sinclair Broadcasting has been in the news recently with a very noisy fight (they won) over cable company <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Mediacom</span>. They are leading <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">the</span> charge now with <span class="blsp-spelling-error" id="SPELLING_ERROR_2">Comcast</span>. Let's see how they do there.<br /><br />So the cash flow is <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">improving</span> with this (one time) jump in revenues. But I suspect that, as the Barron's article notes, whether we will see on<span class="blsp-spelling-error" id="SPELLING_ERROR_4">e of</span> Hearst, Sinclair, Lin etc. get eaten up by the private equity guys.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-85729274226789954472007-01-17T13:52:00.000-05:002007-01-17T14:01:49.980-05:00Future of Local TV Stations DiscussedRead the top exec soul <span class="blsp-spelling-error" id="SPELLING_ERROR_0" onclick="BLOG_clickHandler(this)">searchinig</span> in the <a href="http://www.tvweek.com/news.cms?newsId=11396">TV Week article</a>.<br /><blockquote><br />Bill Peterson, senior VP of the E.W. <span class="blsp-spelling-error" id="SPELLING_ERROR_1" onclick="BLOG_clickHandler(this)">Scripps</span> Co.'s television station<br />group, said "It is the best medium to build brand and distribute a broad<br />message," he said. "We should stop apologizing."<br /><br />CBS Television Stations President Tom Kane said that while the local<br />station business has changed in recent years, it retains a good advertising<br />model, adding that synergy between stations and their Web sites and other<br />distribution platforms is bringing in new streams of revenue. "You want to<br />distribute across platforms and get paid for it," he said.<br /></blockquote><br /><br />It is clear that local TV ha<span class="blsp-spelling-error" id="SPELLING_ERROR_2" onclick="BLOG_clickHandler(this)">s the</span> advantage of being local and in the community, and they need to extend this into new media.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-64280653228257403822006-12-13T08:54:00.000-05:002006-12-13T08:58:54.553-05:00Radio Advertising Trends<a href="http://www.kenradio.com/IQ/121306.jpg"><img style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 400px; CURSOR: hand" alt="" src="http://www.kenradio.com/IQ/121306.jpg" border="0" /></a><br /><div>Ken <span class="blsp-spelling-error" id="SPELLING_ERROR_0" onclick="BLOG_clickHandler(this)">Rutkowski</span> of <span class="blsp-spelling-error" id="SPELLING_ERROR_1" onclick="BLOG_clickHandler(this)">KenRadio</span>.com sent an interesting pack of statistics about revenue trends in radio.</div><br /><div></div><br /><p>Year to date, Local and National revenues are flat-lined, with local radio declining. Note that these comparisons are <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">political</span> (this year) to non-political (last year), so the base decline is worse than the trends show.</p><p>As I have been saying, radio trends are spelling the future of TV. Local has a <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">challenge</span>. Those with content have options.</p>Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-31509187542077305742006-12-04T06:58:00.000-05:002006-12-04T08:36:35.795-05:00Radio Re-tooling. New Toys Spell the Same for TV?A <a href="http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061204:MTFH43304_2006-12-04_11-45-35_WEN0646&type=comktNews&rpc=44">Reuters story today </a>headlines: "U.S. broadcasters to spend $250 <span class="blsp-spelling-error" id="SPELLING_ERROR_0" onclick="BLOG_clickHandler(this)">mln</span> for <span class="blsp-spelling-error" id="SPELLING_ERROR_1" onclick="BLOG_clickHandler(this)">HD</span> radio". They are doing this to compete against satellite radio and <span class="blsp-spelling-error" id="SPELLING_ERROR_2" onclick="BLOG_clickHandler(this)">iPods</span>.<br /><br />Now substitute satellite radio with cable and satellite TV, and <span class="blsp-spelling-error" id="SPELLING_ERROR_3" onclick="BLOG_clickHandler(this)">iPod</span> with "<span class="blsp-spelling-error" id="SPELLING_ERROR_4" onclick="BLOG_clickHandler(this)">iPod</span> and <span class="blsp-spelling-error" id="SPELLING_ERROR_5" onclick="BLOG_clickHandler(this)">Zune</span>", Apple and now Microsoft's personal entertainment gadgets, and you have the same scenario set for TV.<br /><br />I have been eyeing the new <span class="blsp-spelling-error" id="SPELLING_ERROR_6" onclick="BLOG_clickHandler(this)">Zune</span> with its glitzy color screen, all set for watching video. The screens are great, the hard drives are getting better .. and the reviewers are all clamouring for better video .. which means it will eventually happen. Imagine, hours of <span class="blsp-spelling-error" id="SPELLING_ERROR_7" onclick="BLOG_clickHandler(this)">HD</span> video in you pocket... just walk up to you 50" HDTV and plug it in ...<br /><br />Again, content is king, and those with content have lots of options. But it doesn't spell well for those who don't respond (i.e. local TV). A bold move like this has to be an option to consider.<br /><br />I'll look at the earnings of the Local and National TV groups later today. Given that this was a political year, it should mask some of the decline .. but it's there.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-91243124038825567172006-11-28T20:34:00.000-05:002006-11-28T20:41:01.999-05:00Cross_over Shows Content Drives the Transition<a href="http://media.seekingalpha.com/article/21341">Seeking Alpha Media Stocks </a>has a great story about Jim <span class="blsp-spelling-error" id="SPELLING_ERROR_0" onclick="BLOG_clickHandler(this)">Cramer</span> (the <span class="blsp-spelling-error" id="SPELLING_ERROR_1" onclick="BLOG_clickHandler(this)">Booyah</span> man on Mad Money / <span class="blsp-spelling-error" id="SPELLING_ERROR_2" onclick="BLOG_clickHandler(this)">CNBC</span>) moving his radio <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">presence</span> to the web!<br /><br />Aha! Could a local TV station move a good portion of its presence to the web and profit? I think so. <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">Remember</span>, people watch content, not a channel. Too many in the old media have got stuck on <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">the</span> concept that they are there to entertain a captured local audience.<br /><br />Local advertisers want local audiences, and lot and lots of people are spending hours searching <span class="blsp-spelling-corrected" id="SPELLING_ERROR_6">the</span> web. Why not have a strong local presence? Local <span class="blsp-spelling-error" id="SPELLING_ERROR_7" onclick="BLOG_clickHandler(this)">TV's</span> real <span class="blsp-spelling-corrected" id="SPELLING_ERROR_8">strength</span> is its LOCAL content .. They can <span class="blsp-spelling-corrected" id="SPELLING_ERROR_9">ex plot</span> it even more than they do, as far as I can see now.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-22734070262675601912006-11-15T06:38:00.000-05:002006-11-20T06:12:05.048-05:00Advertisers (Should) Demand AccountabilityOdd, but why would someone who spends $100,000, or $1M or $10M on a TV ad campaign want accountability? When I use that word in <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">the</span> TV world context, it consists <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">of</span> a check list of items:<br /><ul><li>Did the ad run? If so, what copy?</li><li>When did it run?</li><li>Who watched it? (Not the 1/2 hour program, but how many people (in my target demo), actually sat through the commercial?)</li></ul><p>I've been around the media sales guys enough to know that this level of "<span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">privilege</span>" (some might call it "service") is reserved for a few customers. If you're a local advertiser, few <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">advertisers</span> will get any assurances on all 3 categories .. some of the problem tracing back to <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">Nielsen's</span> <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">lack</span> of comprehensive information.</p><p>"Why should they expect this?", sales guys ask. Because, a small advertiser with $10,000 can run a very accountable campaign on-line. that's the choice .. and that's the choice many of them are making.</p><p><a href="http://adage.com/mediaworks/article.php?article_id=113208">Steven <span class="blsp-spelling-error" id="SPELLING_ERROR_3" onclick="BLOG_clickHandler(this)">Fredericks</span> of <span class="blsp-spelling-error" id="SPELLING_ERROR_4" onclick="BLOG_clickHandler(this)">TNS</span> </a>writes a touching article in Ad Age. Let's hope someone is listening.</p>Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-20133517959305709892006-11-13T05:57:00.000-05:002006-11-13T06:02:28.453-05:00Clear Channel, Largest Radio Group, On the BlockA <a href="http://news.yahoo.com/s/nm/20061113/bs_nm/media_clearchannel_bids_dc_1">Reuters new story today </a>says that Clear Channel, the largest radio group in the world, is up for sale, with <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">private</span> equity firms the likely buyers.<br /><br />In other words, they are going private, so they can restructure without the spotlight of being public. The list of potential buyers are all skilled at <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">restructuring</span> for big profit gains.<br /><br />I <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">believe</span> this is a bell-weather event. It's not just Clear Channel that needs a massive make-over to generate better returns for their <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">shareholders</span>. It is the entire traditional media space.<br /><br />Stay tuned!Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-38682909701044802902006-11-09T21:48:00.000-05:002006-11-09T21:52:02.310-05:00Disney Impresses- Thank You Politics!The <span class="blsp-spelling-error" id="SPELLING_ERROR_0" onclick="BLOG_clickHandler(this)">Disney</span> group <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">showed</span> a <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">very</span> <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">nice</span> profit increase. I'm particularly interested in the local TV revenues and profits. They were strong, as has been all the local TV revenues.<br /><br />Politics, run on schedule every 2 years in this country, create a great surge in local advertising dollars.<br /><br />Is is <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">reliable</span>? No? can they match the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">performance</span> in <span class="blsp-spelling-corrected" id="SPELLING_ERROR_6">the</span> future?<br /><br />I doubt it.<br /><br /><a href="http://news.yahoo.com/s/nm/20061110/bs_nm/media_disney_earns_dc_5">http://news.yahoo.com/s/nm/20061110/bs_nm/media_disney_earns_dc_5</a>Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-8336870391432437652006-11-02T07:00:00.000-05:002006-11-02T07:08:03.438-05:00Hmm .. Mobile TV Shows A Viewer Time ShiftAdvertising spending rates have traditionally peaked in "Prime Time" (8 pm-11 pm in most locations) ... <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">because</span> that is when people are at home, watching TV.<br /><br />But a recent report by the <a href="http://blogs.mediapost.com/research_brief/?p=1288">Center for Media Research </a>shows that prime time for Mobile TV viewers is noon to 8 pm!! And even more interesting, <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">the</span> study shows that the viewing is NOT dominated by the under 24 year old crowd. More than 3/4's of mobile users are 25 and over!<br /><br />Their conclusion --- Mobile TV is a "freedom machine" that allows <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">people</span> to watch what they want, when they want, as opposed to wrestling with <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">the</span> remote with <span class="blsp-spelling-error" id="SPELLING_ERROR_2" onclick="BLOG_clickHandler(this)">others</span> at home.Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-8336238708115329102006-10-30T08:06:00.000-05:002006-10-30T08:10:24.726-05:00Comcast a Winner!<span class="blsp-spelling-error" id="SPELLING_ERROR_0" onclick="BLOG_clickHandler(this)">Comcast</span> reported a big jump in earnings last week ... finally, as CEO <a href="http://www.tvweek.com/news.cms?newsId=10967">Brian Roberts said</a>, reaching an "inflection point" of increased earnings.<br /><br /><span class="blsp-spelling-error" id="SPELLING_ERROR_1" onclick="BLOG_clickHandler(this)">Comcast</span> sits in an excellent strategic position to capitalize on the change in technology and can now enjoy the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">yields</span> on their very extensive investments over the past decade.<br /><br />In <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">addition</span> to carriage (subscription fee) revenues, they <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">leverage</span> <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">their</span> earnings with broadband and telephone fees. Nice leverage!Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-59732043956296434022006-10-30T07:03:00.000-05:002006-10-30T08:06:16.308-05:00Not Everyone is Happy With the New Face of BroadcastI <a href="http://thefutureoftvadvertising.blogspot.com/2006/10/cost-cutting-begins-signs-of.html">reported last week </a>that NBC was saying goodbye to 8 pm dramas and going exclusively to (low cost of production) reality shows at that hour.<br /><br />That didn't get a good reaction from Hearst-Argyle Television CEO <a href="http://www.tvnewsday.com/articles/2006/10/26/daily.6/">David Barrett, who said </a>that that could be a mistake.<br /><br />Yikes! Well, this is one strategy to <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">the</span> shift away from TV. Lower costs, produce lower quality material.<br /><br />City bus services in many locations face the same. Ridership <span class="blsp-spelling-error" id="SPELLING_ERROR_1" onclick="BLOG_clickHandler(this)">down</span>? Raise fares, reduce number of bus trips. I haven't seen that work in those cases, and I wait to see if it will work NBC and its affiliates.<br /><br />Initial reaction from NBC -- said to be reconsidering ....Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0tag:blogger.com,1999:blog-29724971.post-89731861703546342582006-10-20T07:28:00.000-04:002006-10-20T07:40:52.148-04:00The Cost Cutting Begins, Signs of Traditional Decline WidenA number of stories caught my eye and prove that the trend away from "broadcast" advertising continues.<br /><br /><ul><li>NBC is <a href="http://adage.com/mediaworks/article.php?article_id=112580">cutting costs by $750 million</a>, and will direct more effort to digital media. Say goodbye to 8 pm dramas! And say hello to layoffs (at a town hall meeting today).</li><li>The Wall Street Journal <a href="http://adage.com/mediaworks/article.php?article_id=112558">saw ad revenue fall </a>by 5.9% in September!</li><li>The new "My Network TV" is not doing well. <a href="http://adage.com/mediaworks/article.php?article_id=112543">Ad Age reports </a>that "the shows average 439,000 viewers in the 18- to 49-year-old demographic and a 0.3 rating/1 share. The total number of nightly viewers adds up to 910,000, according to live-plus-same-day figures provided by Nielsen Media Research through Oct. 15. Those ratings are more akin to a second-tier cable network"</li></ul>Michael B. Cooperhttp://www.blogger.com/profile/10953651158970625994noreply@blogger.com0