In a lively, sometimes impassioned forum on Nielsen's plans to introduce average TV commercial minute ratings later this year, more than 100 industry executives debated definitions, methods and the utility of the new ratings, which some saw as a stopgap measure toward the ultimate goal of either second-by-second ratings or ratings for specific TV commercials. But of the roughly 70 executives who attended the Advertising Research Foundation committee meeting, or the scores who listened in on the phone or via webcasts, not one representative of the most important stakeholder - advertisers - was present. The "buyer's" voice was represented by Judy Vogel, the OMD media research diva who also chairs the American Association of Advertising Agencies' influential media research committee, who championed the concept of "more granular" data, and also the ability of Nielsen clients to determine how they get data identifying which commercial minutes are being rated. The notion that such data should be available on an "open source" basis, not surprisingly, was advanced by Nielsen's primary competitor in that part of the business, TNS Media Intelligence, which pitched itself as a better, more qualified and higher quality alternative to Nielsen's Monitor-Plus service (MediaDailyNews Oct. 25). In fact, TNS MI's Senior Vice President-Research Jon Swallen proposed that the industry conduct an open, side-by-side test of the two services to determine which is more accurate and would be better to incorporate into the new commercial ratings process. "We are prepared to undergo a comparative analysis - a comparative test between TNS Media Intelligence an Monitor-Plus," Stephen Fredericks, president-CEO of TNS MI told MDN in an interview following the ARF meeting, adding, "It should be conducted by an objective third party." While some of Nielsen's clients attending the meeting seemed to support that idea, it was unclear whether Nielsen did or would. When asked about the suggestion, Nielsen representatives sought to deflect it, noting that they already had applied to the Media Rating Council for an audit of Monitor-Plus and MRC accreditation to use it as part of a TV ratings service. TNS MI also has applied to the MRC to audit its data with an eye toward accrediting for use in a TV ratings service, and Fredericks and Swallen said the MRC ultimately may provide a forum for a direct comparison between TNS MI's and Nielsen's commercial monitoring data. However, that process may take time, and would not be as transparent as an open market comparison. Another option might be for Nielsen clients to simply use third-party processors to integrate TNS MI's data with Nielsen's TV ratings for their own commercial minute ratings. Several Nielsen clients, including Starcom MediaVest Group and The Weather Channel already are processing Nielsen's ratings data that way, though it wasn't clear at presstime whether they were using Nielsen's or TNS MI's commercial data to do it. Fredericks noted that TNS MI's data currently is used by 80% of media companies and "60-70%" of ad agencies. TNS MI is scheduled to meet with the MRC on Nov.14 to discuss its plans. The issue of who supplies the so-called commercial "occurrence" data and what the quality of that data is not so inconsequential said ESPN's Glenn Enoch, who presented the cable network's own analysis showing that only 25 % of Nielsen commercial minutes ratings data are fit for use right now. It's not a trivial matter when you get down into the nitty-gritty," Lifetime Television's Tim Brooks, and chairman of the ARF committee told MDN following the meeting. He said a lot of the discussion surrounding commercial ratings to date has focused on "high level" issues, but that little details influencing the quality of the commercial data can have a profound impact on the accuracy of the ratings they generate.
Wal-Mart reportedly has decided to move its massive advertising account to a "dream team" comprised of Draft FCB as its core brand agency and Carat as its media strategy, planning and buying shop. Wal-Mart declined to comment on consumer and trade reports and said a final decision has yet to be made, but Draft FCB parent Interpublic's stock rallied Wednesday on the news, which would come as powerful vindication for the new hybrid direct/brand agency structure. The decision, should it be finalized, would also be a strong vote of confidence for Carat, which has had a rocky new business run lately, and now must defend a review of one of its biggest clients, Phillips. The news would also be a blow for Omnicom's whose GSD&M unit has been Wal-Mart's long-time ad agency, along with independent Bernstein-Rein, but the world's largest retailer appears to be set on altering its marketing, advertising and media strategy. Interestingly, Wal-Mart, as big as it is in retailing, is not a huge advertiser, and a very small one nationally. Most of the estimated $570 million it spends on media is spent locally and is promotionally based to drive traffic to its stores. The selection of Draft FCB and Carat suggests a decision to shake things up and move in new directions. In fact, Interpublic's R/GA unit, which is known for breakthrough creative media strategies, is expected to take the lead on Wal-Mart's interactive advertising and media efforts, though that also has not been confirmed. Another intriguing element of the Draft FCB and Carat alliance is the role of Bill Cella, the chairman of Interpublic's Magna Global media negotiating unit, who recently was named a vice chairman of Draft FCB and who will likely play a key role with the Carat team. Meanwhile, Wal-Mart has unveiled plans to alter its advertising theme to a "Be Bright" effort beginning Nov. 1, in time for the holiday shopping season. The effort aims to reposition the retailer as a destination for premium electronics and fashion offerings in addition to low-cost household items. It's unclear whether the campaign was developed by one of Wal-Mart's outgoing shops, GSD&M, which was a finalist in the review, or Bernstein-Rein Advertising.
In what appears to be the official final chapter of a long, vicious and extremely public feud between Nielsen Media Research and one of its biggest clients, News Corp. Wednesday announced what it called a "landmark" deal with the ratings researcher: a new eight-year contract covering 49 individual TV properties and consolidating 150 individual agreements between the two companies. The deal, however, could add fuel to another Nielsen fire: erinMedia's federal antitrust suit against Nielsen, which specifically alleges that Nielsen's "staggered" contracts with major TV companies is an anticompetitive practice. While terms of the News Corp. deal were not disclosed, speculation is that News Corp. extracted relatively favorable terms from Nielsen after a protracted battle that began with Nielsen's rollout of people meters in local markets and progressed through civil rights organizations and even Congress. In that battle, News Corp. executives played the so-called "race card" in an effort to smear Nielsen's credibility in measuring minority viewers, especially African Americans and Latino Americans, propping up the Don't Count Us Out advocacy group and hiring high-level lobbying firms and PR consultants to put the heat on Nielsen - at first clandestinely, and then quite openly. While Wednesday's announcement officiates the truce, the reality is that News Corp. and Nielsen buried the hatchet last sprint (MediaDailyNewsMay 3), months after the DCUO pressure group went dormant, and the two companies began working out their new agreement, including plans, ironically, for the roll out of new people meter markets. "This agreement, which was more than a year in the making, affords us much greater efficiencies and simplicity in our relationship with Nielsen," said Gary Ginsberg, News Corporation's executive vice president of corporate affairs, in a statement released Wednesday. "Nielsen's willingness to take concrete and ongoing steps to ensure that its measurement systems accurately count all viewers was critical to achieving this deal." As part of the deal, the 35 Fox-owned TV stations agreed to purchase Nielsen's local TV ratings, including all the local people meter markets, which were News Corp.'s main public grievance with Nielsen when it waged its war. However, Nielsen said that part of the agreement calls for Nielsen to invest "approximately $50 million in programs designed to enhance the response rates of participants in its samples, with special emphasis on younger demographics and communities of color."
Following a review, MediaVest USA has won media planning and buying duties for Comcast Entertainment Group, effective November. The account will be handled from its Los Angeles office. The recently formed Comcast Entertainment Group consists of E! Networks and G-4, the technology and computer-gaming enthusiasts channel that has gradually morphed its programming to more broadly appeal to men in the coveted 18-34 demo. E! Networks includes entertainment news and gossip channel E! Entertainment Television, and the fashion- and lifestyle-focused Style Network, the destination for women 18-49. "The biggest reason MediaVest won the account was because they didn't just talk the buzzwords, they considered each and every challenge that faced each network," says Suzanne Kolb, executive vice president, marketing and communications, E! Networks. "They crafted strategies and ideas that ... were refreshing and understand the new playing field and platforms, without throwing out the old media when it was appropriate." "These channels thrived in an environment of change because they have loyally served their respective growing audiences with new and exciting content, while capitalizing on franchise favorites," said Laura Desmond, CEO of Starcom MediaVest Group, The Americas, in a prepared statement. "We're thrilled to partner with them and look forward to activating our strategic and creative use of media to work for them."
Clear Channel Communications is taking its "less is more" strategy from Madison Avenue to Wall Street. The nation's biggest radio broadcaster is planning a leveraged buy-out that would take the company out of the hands of public shareholders and make it the biggest privately held broadcast media company. The move is the latest machination by a traditional media company to leverage its underlying value. "Current price suggests investors already anticipating LBO [leveraged buyout]. In our view, the 10% increase in share price since September 6th...suggests that investors have already begun to price in the possibility that CCU will do an LBO...." Laraine Mancini, the lead radio broadcasting analyst at Merrill Lynch, in a report circulated to investors on Wednesday. Private-equity firm Kohlberg Kravis Roberts--which recently led a successful effort to acquire the Dutch research and publications conglomerate VNU--is reportedly in discussions with the largest-shareholding Mays family, which launched the company in 1972. Although it owns an out-of-home advertising business, a live entertainment unit and 41 TV stations, Clear Channel's primary source of income is its 1,182 radio stations. Radio has fought an increasingly steep battle in recent years for the aural entertainment dollar. A multitude of digital competitors--iPods and other MP3 players, Internet and satellite radio--have taken a formidable chunk out of the wavelength's dominance, and radio ad sales have been impacted. As the digital competitors have risen over the past three years, Clear Channel's stock has fallen, with a drop in value from a high of more than $45 in early 2004 to an August 2006 low of $27.17. The value has since risen, to a close yesterday at just over $32--with a market capitalization of $16.1 billion. The Merrill Lynch report says the most attractive reason for taking the company private would be to break it up, particularly for the separate value of its TV and radio stations.
The Ion Media Networks' i network will give RHI Entertainment its entire prime-time weekend schedule to program and market. The rebuilding, undersized broadcast network, which is comprised of small UHF and low-power TV stations, will let RHI exclusively plan and program three four-hour time blocks on Friday, Saturday and Sunday night. RHI and Ion will jointly determine ad sales strategy. This is a revenue-sharing arrangement, in which RHI will probably control and sell the ad inventory, says Brandon Burgess, CEO of Ion Media Networks. The deal gives the i network, which covers 92 million over-the-air TV homes, access to RHI's library of some 1,200 titles--many made-for-TV movies. RHI Entertainment recently bought back most of its titles from Hallmark. RHI makes some 40 to 60 TV movies and miniseries a year. "It's sort of a synergist play," says Burgess. "We have 90 million TV homes and they have 5,000 to 6,000 hours of programming. We need programming, and they need distribution. The weekend is a tough time period to sell." Some months ago, Ion also made the decision to eliminate the selling of local TV ad inventory. In addition, the i network had been only running infomercials before its move back to mainstream programming. "This gets us back in the general advertising game," says Burgess. Ion's Monday through Thursday prime-time program plan is to run mostly traditional and older syndication fare. In June, it struck a wide-ranging deal with Warner Bros. Domestic Cable Distribution for shows such as "Welcome Back, Kotter," "Chico and the Man," "Scarecrow & Mrs. King," and "Growing Pains." In addition, the deal called for movies, including "Amadeus" and "One Flew Over the Cuckoo's Nest," "All the President's Men," and others. Ion also says it plans to use more of its local-station digital multicasting capacity to grow its business. This already includes plans for over-the-air networks, such as qubo, a children's network in partnership with Scholastic; Corus Entertainment; Classic Media/Big Idea; NBC Universal; and iHealth, a channel about consumer healthcare and healthy living. Ion Media Network's was the former Paxson Communications. Ion is controlled by NBC Universal Television Group, which has a minority interest in Ion Media.
A week ago, NBC's decision to revamp its Thursday lineup seemed unlikely. It indicated that scripted programs would be absent from the 8 p.m. hour. The network has since backed away from that claim, saying Wednesday it would return to its four-comedy strategy on Thursdays. Although NBC Entertainment President Kevin Reilly said in May that "it felt vulnerable" to go with a four-comedy approach on that night, "Scrubs" and "30 Rock" will fill the Thursday 9 p.m. hour starting Nov. 30, replacing "Deal or No Deal." After "The Apprentice" faltered, NBC had unsuccessfully returned to a four-comedy approach last spring, but abandoned it this season--until now. A two-hour comedy block propelled NBC to Thursday dominance for two decades starting in the early 1980s. "We will stay on-brand with the best comedy block on television, which will position us for the future of the night," Reilly said. "My Name is Earl" and "The Office" will continue to follow one another in the 8 p.m. hour followed by "Scrubs"--which has received critical acclaim but never become a breakout hit--and new comedy "30 Rock." "30 Rock" has been airing at 8 p.m. on Wednesdays, but hasn't fared well. NBC has seen some of its old Thursday-night success return this season, as "ER" has returned to the top slot at 10 p.m. However, "Deal" has been trailing ABC's "Grey's Anatomy" and CBS' "CSI" badly in the 9 p.m. hour. And "Earl" and "The Office" have trailed "Ugly Betty" and "Survivor" in the first hour.
Riding Sun Belt population growth and particularly strong political spending, Meredith Corp. posted robust revenue growth for its 14 local stations in the most recent quarter. Revenues jumped 14.3% to $82.1 million, a higher growth rate than many competitive station groups posted in the July-September quarter. The growth in the broadcasting business fueled an overall 5.3% ad revenue gain at the company, whose larger publishing operations include Better Homes and Gardens and Family Circle. Publishing revenues were $313.7 million, with ad dollars up 1.3% In the station business, "location, location, location" gave Meredith momentum, the company said. Its portfolio includes CBS affiliates in Atlanta and Phoenix and the Fox station in Las Vegas, three booming communities that continue to add TV homes and potential ratings points. It also has stations in the Hartford, Kansas City and Nashville DMAs--focal points of contentious U.S. Senate races. The company said viewership growth at its Phoenix station, acquired in 1952, is translating into $1.4 million more in revenues per rating point increase. Meredith posted $8.6 million in political revenues--its most ever for the July-September quarter. The strong spending trend bodes well for the company's revenues next quarter, since political spending accelerates in the last six weeks before the election. The company said it has beefed up news coverage, particularly at its four Fox stations, in order to try and capture more political ad dollars. Also, changing population dynamics could help in 2007, as political spending ebbs. Nielsen figures show that TV homes in the Atlanta market grew by 5.2% over a year ago, Phoenix increased 3.9% and passed Seattle to become the 13th-largest DMA, and Las Vegas moved up five spots to 43rd. Another promising sign: nonpolitical local advertising was up 7%. The industry has struggled to grow local ad dollars, as retailers such as Macy's became larger national advertisers and the Internet gains ad clout. Meredith president-CEO Stephen Lacy also said on a conference call that the station group has made progress on growing two revenue streams: retransmission consent fees and ad dollars for its Web sites. Although he declined to offer specifics, he said so-called "retrans fees" increased "significantly" for the quarter and exceeded the amount the company pays networks to offer their programming, known as "reverse compensation." So far, retrans fees--something local broadcasters traditionally haven't collected but are now pushing aggressively for--are coming mostly from satellite operators. Lacy added: "We're encouraged that some cable companies have started to pay these fees as well. We expect phone companies to pay retrans fees as we look to the future." Redesigned Web sites for the stations also helped drive revenues, he noted. With consumers moving online and newspapers largely holding the edge as the local online news source, stations have tried to catch up with greater investments. "We dedicated additional resources, redesigned every station Web site and are driving toward becoming the local portal of choice in key markets."
Baseball reigned on Tuesday night. Fox edged out ABC on Tuesday night among 18-49 viewers. Fox ran up a 4.8 rating for its third World Series game between the St. Louis Cardinals--even though the game was down from the second game of the World Series. ABC was down versus a week ago, when it earned a 4.6/12. ABC was led by "Dancing with the Stars," which grabbed a 5.4 rating/14 share. In head-to-head competition, "Stars" got the better of the World Series, beating it by 2.5 rating points in the 8 p.m. to 9 p.m. hour, and 1.3 rating points during the last half-hour. "Stars" ran an hour and a half--8 p.m. to 9:30 p.m.--while the baseball game ran for about three and a half hours. For the evening, Fox took in a 4.4/12 and ABC was close behind with a 4.3/11--trailed by NBC with a 3.3/9, CBS at 2.9/8, CW at 1.8/5, and Univision at 1.5/4. "Stars" was down from its big 6.0-rated showing of a week before. That's when one of its celebrity dancers, Sara Evans, abruptly left the show. ABC's "Help Me Help You" had slight gains over recent weeks--at a 3.2/8 in 18-49--while "Boston Legal" came in at 3.1/8, the same as a week before. NBC's new "Friday Night Lights" took in a 2.6/7, which was about the same as a week ago. CBS' evening again was the model of consistency. Virtually all three of its hour dramas came in at about the same levels: "NCIS" at 3.0/8, "The Unit" at 2.9/7, and a special "Criminal Minds" at 2.9/8. The CW offered up another strong performance for its two hours--"Gilmore Girls" and "Veronica Mars"--in their respective 18-34 demo areas. For 18-49, "Girls" posted a 2.0/6, and "Mars," a 1.5/4.