Archive for November, 2013

Follow the MONEY!

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Local media ad revenues are forecast to rise at a compound annual growth rate (CAGR) of 2.8% for the five year period from 2012 through 2017, hitting $151.5 billion in 2017. Not surprisingly, that growth will be driven by online/digital ad revenues – forecast to enjoy a 13.8% while traditional media barely grows by a 0.1%.
Location targeted mobile advertising revenues, which are growing at a faster pace than overall mobile advertising, will increase from $2.9 billion in 2013 to $10.8 billion in 2017, accounting for 52% of overall U.S. mobile ad spending in 2017, BIA/Kelsey predicts. Total mobile ad spending will grow from $7 billion now to $20.7 billion in 2017.
Newspapers are expected to be the big losers in local ad market share, dropping to a 9.1% share in 2017. However, the online operations associated with newspapers are projected to claim 2.4% of local ad spending.
For television, local broadcast TV is expected to see its share slip slightly, while local cable grows. Now commanding 5.4% of the local ad market, Cable is forecast to increase that to 5.7% by 2017. Cable has been growing its share of political spending, but is also strong in non-election years.
Local TV is seen slipping slightly to 14.6% in 2017, although it will still be second only to direct mail, at 24.6%. Also, broadcast TV is growing local advertising on its digital properties, with the online operations of TV stations expected to claim 0.7% of local advertising in 2017.
Digital has become more important for both national and local advertisers, On the other hand, you still need local TV advertising campaigns – and national TV advertising campaigns – to move product. Automobile advertising, while they’re moving a lot of money online, still spend a lot of money on local television and local cable.

What’s Happening?

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Bass Pro Shops is already in the Christmas spirit with a :30 inviting kids in to make a free ornament to give to mom. Of course, it’s likely that the parents will also show up for some shopping……Target has expanded its Beauty Concierge program to 95 stores in New York and New Jersey, the San Francisco Bay area and Dallas-Fort Worth. Participating stores are staffed with a Target Beauty Concierge, a highly-trained, brand agnostic beauty enthusiast who is available to answer guests’ questions in-store……Ace Hardware Corp. reported third quarter revenues of $1.0 billion, an increase of 8.9% over a year ago. Retail same-store sales in the U.S. were up 6.9%……A kid uses her tablet to show the best gifts to give this Christmas in a :30 from Draftfcb for Kmart……Sports Authority says most locations will open on Thanksgiving Day, Thursday, November 28, at 6:00 pm and remain open until midnight – then reopen on Black Friday, November 29, from 6:00 am to 10:00 pm……Third quarter sales rose 3.3% for Macy’s to $6.28 billion. Comparable store sales rose 3.5%……Designer Vera Wang herself appears in a new :30 from GSD&M promoting her new wedding jewelry line at Zale.

Hispanic Community

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Magazine companies are increasingly shifting their attention to the surging Hispanic community in the U.S. and their impressive buying power. In the last 10 months, Hearst, Conde Nast and Time Inc. have introduced or strengthened English-language magazines and inserts aimed at Latinas, a growing demographic that marketers are eager to reach. Ad spending on Hispanic media climbed 11% to $7.9 billion in 2012, faster than the general market.

But the vast majority of the spending in Hispanic media — $5.8 billion — is flowing to TV. And digital media seems to be siphoning off what’s left for print magazines, where spending last year shrunk 19.5% to $294 million.

But Hispanic magazines looked better by another measure: ad pages in a smaller set of Hispanic magazines, which slipped just 1.4% last year from 2011. Consumer magazines as a whole saw ad pages fall at a much sharper pace, declining 8.2% last year, according to the Publishers Information Bureau.

Whichever set of numbers you go by, however, publishers are determined to improve on them, lately by trying to capture the attention of second- and third-generation Hispanics.

The Ratings Game

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A new survey from STRATA reveals that audience sentiment does not always align with traditional viewership and ratings data. As networks face more competition from cable channels and non-traditional mediums such as Netflix and Hulu, the fight to retain and grow an increasingly fragmented audience is heating up. The survey also found that networks face brand awareness challenges.

Advertisers and agencies have long depended on ratings as a key measurement tool, guiding them on where to spend their ad dollars. The findings of the Fall TV Sentiment Survey, though, contrast ratings with viewership sentiment – measuring intensity, not just viewer numbers. For example, while 13.3 million viewers tuned in to watch the premiere of CBS’s new program The Millers, only 3% of survey respondents indicated that it was their favorite new show. NBC’s The Blacklist was most popular with survey respondents, with 15% saying it was their favorite although fewer viewers tuned in to watch its premiere (12.6 million) as compared to The Millers.

TV executives closely watched the September 29th premieres of the The Michael J. Fox Show on NBC and The Crazy Ones on CBS as they battled for primetime viewers. That evening The Crazy Ones (15.6 million viewers) overshadowed The Michael J. Fox Show (7.5 million viewers), but 11% of survey respondents favored The Michael J. Fox Show over the 4% who chose The Crazy Ones as their favorite new show. When asked to pick their overall favorite show, which included new and already established shows, not a single person polled said The Crazy Ones was their favorite show so far this season. That spot belongs to another CBS show, The Big Bang Theory, which received 13% of the vote.

STRATA’s Fall TV Sentiment Survey also found that some networks are facing brand awareness challenges. Only 76% of NCIS fans, 73% of Big Bang fans, and 63% of How I Met Your Mother fans were able to properly identify these as CBS shows. Only 56% of Modern Family fans properly identified it as ABC, whereas 89% of Marvel’s Agents of S.H.I.E.L.D. fans accurately chose ABC. FX led the group with viewer recognition as 94% of Sons of Anarchy fans identified it as an FX show.

CBS and NBC were tied as the networks with the best new programming; ABC came in third, FOX fourth and AMC fifth.