• by Joe Mandese  @mp_joemandese, April 12, 2006

Demand for digital media inventory is outstripping supply, Alec Gerster, CEO of Interpublic's Initiative Media unit tells the equities research team at Merrill Lynch. To counter rising prices on portal sites, Gerster says marketers are targeting to gain better efficiencies.

Gerster, who says Initiative is experiencing a slowdown in demand for traditional media, and spending in this year's network upfront advertising marketplace will be "measured," notes that broadband video is "breaking out faster" than Initiative expected.

The media chief also notes that advertisers want to experiment with new areas such as advertising on social networks, but that "dollars remain limited."

Gerster, meanwhile, casts a dour view for traditional media, describing a difficult outlook for magazine and newspaper publishers, and characterizing radio as "underappreciated" due to poor creative.

Regarding the network upfront, Gerster says total Internet ad spending is poised to exceed network TV spending and that upfront demand continues to erode to other media.

Gerster describes ABC's plan to make ad-supported shows downloadable via the Web the day after their network TV window as a "great opportunity."