Aegis Group, the world's largest pure-play media services company, early Wednesday morning said it has received an offer from an unnamed suitor to be acquired for 140 pence per share, or about $2.8 billion. While Aegis did not disclose the name of the suitor, the buzz among the international press during the wee hours was that the offer could be from French-based agencies Havas or Publicis, or from U.S.-based Omnicom. "Aegis confirms that it has received an approach at an indicative level of 140 pence per Aegis share," is all that Aegis would acknowledge in its official statement, made as part of its requirements to inform investors. "However, the approach is preliminary in nature and there can be no certainty that an offer will be made." The Aegis board was expected to meet around midday U.K. time today to discuss the offer, and stated: "A further announcement will be made in due course." French newspaper Les Echos reported on its Web site that Paris-based Publicis, the parent of Starcom MediaVest Group, Zenith Optimedia Group, and ad agencies such as Leo Burnett, Saatchi, and Fallon, has made a "friendly offer" for Aegis, although that could not be confirmed at press time. Other publications speculated that the offer had either been made by Omnicom, the parent of OMD, PHD and agencies such as DDB and BBDO, or Havas Chairman Vincent Bollore. Bollore recently took a 6 percent stake in Aegis, the parent of Carat, Vizeum, Isobar, Posterscope, and research group Synovate. Bollore initiated his takeover of Havas last year with a similar stake, and recently liquidated his interests in a shipping conglomerate to free up cash, presumably to make a run at Aegis. Omnicom, already the world's biggest advertising organization, has been reported to have an unsuccessful bid late last year to acquire Aegis, though that report has never been confirmed. While speculation continues that WPP Group Chairman Martin Sorrell is keenly interested in Aegis, WPP is believed to be financially over-extended due to other recent acquisitions, and may have to sit this one out on the sidelines.
All network entertainment chiefs would love to have more family-friendly shows--but not when it comes to sacrificing bigger broad-reaching programs or important marketing agendas. "If you have got a program that is family-friendly, but it's not performing because it's too niche or too soft or treacly--that is a deterrent," said Stephen McPherson, president of ABC Primetime Entertainment. McPherson, along with other network entertainment chief executives, tossed around ideas concerning family programming during a Family Friendly Programming Forum Symposium in Los Angeles yesterday. The Family Friendly Programming Forum is a group arranged by the Association of National Advertisers. Some 44 companies are members. Initial questioning related to whether family programming was good business. The WB had no problem in touting that it was. "Gilmore Girls" has been the poster child, as one of the first shows to receive Family Friendly Forum development money. "7th Heaven" is another WB show in the same family-friendly vein--although it came on the air before the advertiser group was established. "Everwood" is another long-running family show on the WB. "For us, it's a terrific business," said David Janollari, president of entertainment for The WB. Research earlier in the day showed that all kinds of popular shows are also family programming--from CBS' "Survivor" to Fox's "American Idol." Procter & Gamble's research even showed that ABC's high-rated "Desperate Housewives" could be considered family viewing, since it brings in some 1.7 million kids ages 6-11 as viewers. That had Lance McAlindon--director, consumer and market knowledge for P&G--suggesting that what the industry needed was a family-friendly "Desperate Housewives." Other family shows also don't seem so obvious. Kevin Reilly, president of entertainment for NBC, noted that Fox's "Family Guy," which has salty language and more adult situation story lines, actually pulls in good family viewing. "There are some shows that make you uncomfortable, but the fact is--millions of people and families are watching," he says. "It's tricky. We saw this with 'Fear Factor' for years." It's not so uncomfortable for "American Idol," which gets healthy family viewing. All that gives network executives hope that something new in the "Idol" vein may work. "When you have a show like 'Idol,' I can go out talking to the creative community, saying--here's an opportunity [to establish] a broader family comedy," said Peter Liguori, president of Fox Entertainment. Having family shows is important. But Liguori says the good idea is the prime objective, regardless of a particular viewer group--old, young, male, female, or family. "The difficulty is deciding where there is fresh turf to mine," he said. "There have been hundreds of failed comedies over the years. The question is--is it Chris Rock or something else?" This season, UPN will have its first Family Friendly funded show for the highly regarded "Everybody Hates Chris." In addition, the Forum also spent development money this year for ABC's "Commander In Chief," CBS' "Old Christine," and WB's "Related," which made it onto network schedules. The threat of increased government intervention for quality family viewing has been an issue over the last two years, stemming from Janet Jackson's breast-baring incident at the Super Bowl. But network executives say this has had little effect on their businesses. "It hasn't affected us at all," said ABC's McPherson. "We have a broadcast and standards department." NBC's Reilly said: "It's not part of our day to day. But it has crept onto our agenda in an unhealthy way." Research from an earlier Forum panel that day showed family-oriented shows receiving less promo time than other higher-profile shows. Moderator Bill Carter, TV reporter of The New York Times, noted that a number of ABC's family-oriented shows received less promotion time than two of ABC's biggest hits of last year, "Desperate Housewives" and "Lost." "We made a conscious choice to prioritize," said McPherson. "It was due to clutter. We couldn't set apart seven new shows; we could do maybe one or two. I think it proved to be right."
Arbitron Tuesday released the first results of TV and radio audience ratings from its portable people meter market test in Houston, and the data confirmed several differences between in-home measurement systems and the portable metering device, including higher audience cumes and more consistent usage patterns for radio listening, and a significantly higher amount of out-of-home TV usage than has previously been assumed. It also dispelled many misconceptions about who's watching TV outside the home. "This is historic," said Pierre Bouvard, president, Portable People Meter at Arbitron. "I think we as an advertising industry have stereotypes about out-of-home television as guys in bars. And I think that stereotype gets exploded." Bouvard said Arbitron is still analyzing the data, and cautioned that one week's analysis may not be indicative of long-term patterns, but that there appeared to be a relatively balanced composition of young men and women consuming TV out-of-home, and that overall usage levels were at least two times higher than the "6 percent to 7 percent" of total viewing that previous out-of-home TV studies have indicated. "The percentage of average quarter-hour viewing to television that is out-of-home--men and women 18-49--it's about 13 percent to 14 percent overall for the week," he said, noting that during midday, out-of-home usage climbs to as high as 17 percent of all TV usage in the Houston market. Bouvard said it was still difficult to know the precise composition of that audience--whether they were people watching TV at work, whether they were unemployed, or even where or on what types of TV platforms they were watching TV on. However, he said some of the highest concentrations of out-of-home viewing were for cable networks such as Fox Sports, ESPN2, WGN, and The Weather Channel, which reap as much as 20 percent of their total audience from out-of-home viewers. "The conclusion: out-of-home is a lot more than guys in bars," he said. The PPM system also revealed new information about the time-shifting of TV viewing. Because each PPM device has the ability to "time stamp" when someone watches a program, Arbitron knows when it has been viewed. Bouvard said initial results indicate that the vast majority of TV viewing in digital video recorder households--93 percent--is done live, and that among the 7 percent that is done on a time-shifted basis, most of it is viewed either the same day, or the following day. He said 9 percent of Arbitron's sample in Houston has DVRs. Arbitron also pointed to several important insights into radio usage that essentially confirm what it found in an early test two years ago in Philadelphia: That radio audience cumes at higher reach levels than previously believed, and that radio is an effective medium for reaching younger listeners ages 6-11. Under Arbitron's diary method, only persons 12-plus were measured. "This proves that radio is a reach medium," he said.
In a super-sized show of multi-channel cross-marketing product placement, Yahoo! and reality TV producer Mark Burnett have partnered once again to promote NBC's prime-time shows "The Apprentice: Martha Stewart" and the fourth season of "The Apprentice," with Donald Trump. All parties involved--Yahoo!, Burnett, NBC, Stewart, Trump, and their advertisers--plan on promoting each other's products, brands, and content throughout the fall season. Yahoo! has already launched a dedicated Web site for each show. There, visitors will find a blending of Yahoo! services and show content including Yahoo! Alerts, which fans of the show can use to stay tuned to show developments via e-mail, instant messenger, or mobile device. Also, past show contestants will be blogging about this season's shows with Yahoo! 360; contestant audition-tapes are available via Yahoo! Video; and an ad on both sites promoting Mark Burnett's inspirational work, "Jump In!," links to Yahoo! Shopping. And, if that isn't enough, each site features several news stories related to either Stewart or Trump and their shows via Yahoo! News. Working with Burnett and NBC, Yahoo!'s goal was to highlight as many of its products as was humanly possible, according to Jim Moloshok, senior vice president of entertainment and content acquisition at Yahoo! "We asked ourselves how far we could stretch this vertically across our properties," Moloshok said. Each week, both Stewart's site and Trump's site will present 40 to 45 minutes worth of video, most of which was not shown on NBC. Yahoo!'s dedicated sites will also include new contestant interviews each week that are not available to television viewers. Each clip that a viewer cares to watch is preceded by a 30-second streaming pre-roll ad from the sponsors, including Clorox, Microsoft, and Bally Total Fitness gym. NBC will also promote Yahoo!'s sites each week on TV with clear and concise sound-bites, Moloshok said. "We know from experience to give viewers the easiest instructions possible in order to maximize cross-promotions," he said. For example, immediately following the first episode of "The Apprentice: Martha Stewart," in which Stewart's line of children's books published by Random House will be positioned, consumers will be told to "Go to Yahoo! and search for 'Apprentice' books," Moloshok explained. Viewers who do as they're told will then be led to Yahoo! Shopping. Explaining to television viewers that they have to go to Yahoo! Shopping would be too complicated for them, Moloshok added. Additional product-placements will intersperse virtual 360 Tours--not to be confused with Yahoo!'s blogging tool Yahoo! 360--featured on Trump's and Stewart's sites. Each piece of furniture--much of which is Martha Stewart's signature line--contained in each room within each of the two massive apartments where show contestants are housed has been catalogued so viewers know where to shop. There are also strategically placed products within the rooms, such as Apple's Dual 2.5 G5 Desktop. The Apple displays the logo for the computer security company Symantec, which is also a major sponsor. Banner and pre-roll ads will also promote Symantec, which is consistent with advertising packages that most of the sponsors signed up for, said Moloshok. "The packages we sold include pre-roll and banner placement and the option for product placement," he said. Seven of the 13 episodes feature products from sponsors of the show, Moloshok added. Moloshok said that Yahoo! could go beyond creating a "contextual experience" by providing "an actionable experience, where viewers can go directly to a product site and buy." Other examples of cross-promotion include an ad with a link to NBC's fall series "My Name is Earl." Frank Zazza, CEO of iTVX, which has arranged product placement deals for Unilever, Kraft, and Verizon, said if a company were to invest in product placement, then this is the way to do it. "Not everyone has the millions of dollars this is going to cost, but, regardless of the money, the key is the combination of placement with other forms of advertising," Zazza said. "These guys know what they're doing."
Two major research companies that focus on branded entertainment and product placement--PQ Media and iTVX--have struck an agreement to release what they say is the first global branded entertainment report on overall spending and measurement. The two companies will also offer custom research studies. The exclusive research report, to be called "Global Branded Entertainment Forecast: Product Placement Spending & Measurement Analysis," will be launched in the first quarter of 2006. The Stamford, Conn.-based PQ Media has focused on selling custom data to brand marketers for alternative advertising such as branded entertainment. The new joint venture report will be based on its Product Placement Spending in Media 2005 report. That study showed that television product placement spending in 2004 was $1.9 billion--up 46 percent over the year before. Overall product placement spending from film, TV, and other media was $3.5 billion in 2004--up 30.5 percent versus 2003. "PQ Media has established themselves as forecasters of branded entertainment," according to Frank Zazza, CEO of iTVX. "Together, we will have the right information for companies who seek branded entertainment spending globally. We can do customized research and turn-key solutions." For the last three-and-a-half years, the New Rochelle, NY-based iTVX has been providing clients with product placement measurement. The company has been selling its Q-Ratio product placement measurement system, which uses 50 different product "variables"--including where it is placed in the background or foreground, the kind of audio that is used in relation to the product, how long the product is seen or heard, and other factors. Q-Ratio gives clients "quality" of a product placement, integration, or a branded entertainment deal, where it values a product placement in relation to a 30-second spot. For instance, a simple static product placed in the background on a set might give a ratio that is a tenth of a 30-second spot. But a bigger branded integration deal, in which the product is part of a storyline--in, say, "The Apprentice"--could have value that is 9 times that of a 30-second spot. Some 20 clients, including advertisers, agencies, and cable networks, have used the Q-Ratio product.
Cornfed Iowa-based Meredith Corporation, the publisher of such magazines as Better Homes and Gardens and Ladies' Home Journal, has dipped its toe into the ever-expanding Latino demographic with its launch of Siempre Mujer, a Spanish-language magazine that targets young Latina women. Siempre Mujer, whose maiden issue features Cuban-American newscaster Soledad O'Brien on its subscriber cover and Mexican songstress Lucero on its newsstand cover, is the latest offering in what advertisers see as an increasingly lucrative market. "We're looking at a woman who has a very unique experience in this country, and is still very much in touch with her country of origin and culture--but also very interested in embracing the values of the American culture," says Siempre Mujer's Editor in Chief Johanna Buchholtz-Torres, noting that the magazine's target audience is women between 18 and 49 who have lived in the United States for at least 10 years. With such publications as Time Warner's People en Espanol and Latina magazine seeing positive circulation movement, Siempre Mujer is the latest publication to attempt to find its niche in the demographic. According to the Fas-Fax report from the Audit Bureau of Circulations (ABC), published in June and covering the first six months of 2005, Latina's subscriptions increased 9.7 percent from the same time period the previous year, while single copy sales were up 57.6 percent. In the same categories, People en Espanol saw positive movement in the 2.8 percent range for subscriptions and 5 percent for single sale copies. Figures provided this month by TNS Media Intelligence, an advertising and marketing information company, said that advertising spending in Hispanic media for the first half of 2005 as a whole clocked in at $1.953 billion--a 3.4 percent increase over $1.889 billion for the same time period in 2004. "This magazine fills a need in the marketplace in terms of the need for a service publication for the Hispanic woman living in the United States, and that's what advertisers have responded to," said Ruth Gaviria, executive director/publisher of Meredith Hispanic Ventures, citing research that Latina women in the 18-to-49 age range who have a median income of $25,000 or more per year and at least a high-school level education number about 10 million or more. "It is (a market that is) growing, (and) we have found that (it is) severely underserved," said Gaviria of Meredith's new offering.