Its focus on digital media and marketing research is paying off for U.K.-based holding company Aegis Group, which this morning reported first quarter 2007 revenues and annual outlook that are beating the overall growth of its peers on Madison Avenue. The results were equally strong for both research and media operations, the latter of which appears to have been bolstered by a surge in demand for digital media. "Digital services continue to be the fastest-growing part of our business," the company said in a statement scheduled to be released at its annual meeting in London today. "Our leadership in digital is allowing us to deliver ever greater integration to clients as marketing disciplines converge." While Aegis did not break out the explicit contribution of its digital operations, it said its digital media network Isobar now is the world's largest, citing new estimates from Paris-based researcher RECMA. Total revenues from its media operations rose 10.3% during the first quarter, about the same as the 10.8% growth of the overall group. Aegis' Synovate research unit outpaced media, increasing 11.6% during the quarter. Aegis' organic revenues rose a healthy 8.4% overall and within its media operations, which have had especially strong momentum in Asia-Pacific and the EMEA markets, and especially China, which generated $2.7 billion in net new business during 2006. "2007 has started well, with strong organic revenue growth in both Aegis Media and Synovate, and we continue to see a healthy outlook for both the advertising and market research markets," the company said, noting that it expects even better results during the second half of the year.
In a bold move to narrow the large revenue gap with Univision, competitor Telemundo will air a drama series with no commercials, just brand integration. Airing on weeknights in late-fringe (7 p.m.-8 p.m.), "Idolos de Juventud" is more accurately a telenovela--the dramatic form of weeknight strip programming popular in the Hispanic community. Brand integration will come in each episode, but no ad breaks, when it debuts this summer. The tactic intriguingly intersects with a slew of industry issues, such as commercial ratings, the value of product placement and DVRs. Without ads, Telemundo presumably won't have to worry about the tricky aspects of negotiating based on commercial ratings. The content would be "DVR-proof"--there would be no worries about viewers fast-forwarding through the ads. The value of product placement is another issue, with the network gambling that advertisers will be willing to pay for the opportunity at a level that brings in more revenue than, say, 16 minutes of commercials. The network said it wants to use one of the burgeoning forms of brand integration--where products become part of a show's story line, not just wallpaper. A Telemundo executive said in a statement that it works by "organically integrating products and making them a part of the lives of the characters on screen." That model, however, is one that upsets many in the creative community. "We respond to the needs of our advertisers by developing solutions that can harness and influence Hispanic culture on their behalf with creative branded entertainment. We allow them to extend their brand presence in a more significant way," said Steve Mandala, senior vice president, sales at Telemundo. English-language networks, particularly cable outlets like FX, have offered commercial-free episodes of dramas with single sponsors that also receive product integration, but only for series premieres. The story of "Idolos de Juventud" involves a Mexican reality TV show looking for the next singing sensation. One of the winners is a music producer's wife, which leads to romantic and other conflicts.
Florida media entrepreneur Frank Maggio, best known for face-offs with Nielsen, is switching strategies for his fledgling ad-focused TV channel. He's looking to make broadband, rather than linear television, the primary distribution avenue for ReacTV. One major reason: Nielsen. With Nielsen refusing to provide ratings for the channel, according to its CEO, Maggio said he's had to explore other options, given the difficulty in charging advertisers without ratings. He hoped to offer ratings through one of his other ventures, erinMedia, a measurement company that planned to use set-top box data. But a competitive Nielsen product derailed those efforts, he said. A Nielsen representative would not comment. "How do you run a TV network when you can't charge for commercials?" Maggio asked. "And that is our challenge right now." It also explains the emphasis on streaming the network via broadband, which Maggio spins as "a strategic decision" that's preferable because it can instantly reach 55 million people--or the current number of Americans with high-speed Internet access. The alternative is going through the trials of building traditional distribution by the thousands through a series of deals with cable and satellite operators. The Web also supplies more accurate user-tracking and measurement capabilities, Maggio said, which will provide the path to "monetize" the venture. So far, the network--which has been beset by several delays and is still only streamed in test mode for two hours each evening with "sample" commercials--is available to 500,000 TV customers in Tampa, Fla. via Bright House networks, along with the Internet streaming. It is, however, the subject of at least one billboard along a busy Tampa freeway in the country's 12th-largest DMA. In fairness, Maggio had always hoped to employ a simulcast between TV and the Web. Now, he's going full-throttle with what is referred to as an Internetwork. The raison d'etre for ReacTV, whose Web locale is www.77.tv (in reference to the linear channel number it occupies in Tampa, and a potential allure to gamers who look for "lucky sevens") is to essentially offer advertisers what could be the ultimate gauge of engagement: Insight into awareness and reactions to spots through a series of viewer questions. The network's content is a mix of trivia and other interactive games, where viewers can win what's billed as "potentially millions of dollars in prizes." But every 10 minutes bring two minutes of spots (usually four :30s), where viewers can also earn compensation by answering questions about their contents. Essentially, it's a sort of field test, where the testers don't know about it. ReacTV has also promised to charge advertisers, based on the number of people who actually watch their spots. To date, prizes haven't materialized, with Maggio now forecasting an August launch. He's also adjusting some plans for the gaming content, and plans to add a host for the shows, tossing out the term the "next Ryan Seacrest" as an example. The current testing involves a panel of some 4,600 unpaid individuals who variously log in during the two hours a day when the programming is now available, 7 p.m. to 9 p.m. weekdays EST (both on TV in Tampa and the Web). In a bid to attract Madison Avenue, potential advertisers can log in through a special code several hours a day to view the system when it's unavailable to the public.
Millions of DVR owners were not able to see the finale of "American Idol" because the show overran its scheduled two-hour time period by nine minutes. As a result, Web sites and blogs were lit up yesterday, as viewers voiced complaints--mostly at Fox, and secondarily, at DVR services like TiVo. Both Fox and TiVo noted that unlike other TV network finales, "Idol" is aired live (or live-to-tape for West Coast viewers). "Idol" is not unlike other big live events--the Oscars and the Super Bowl, for example. "We're sorry that DVR users may have missed the conclusion of the "American Idol" broadcast," said a Fox statement. "It was always our intention to bring the show in on time, but just as with any live sports, variety, awards or entertainment event, there is no way to absolutely guarantee that the show will end exactly on the hour. Fox and the producers apologize to those viewers who were inconvenienced." Said a spokeswoman in a statement: "That's why we allow and encourage subscribers to pad extra minutes, so they don't miss the finale of that respective event." This isn't the first time the "Idol" finale ran long. For the past four seasons, each of the "Idol" finales overran anywhere from one to four minutes. But analysts say with DVR penetration now just under 20% of all TV homes, the chorus is getting louder. The "Idol" show, because it airs live all year round, also ends up running long by a minute or so during the regular season. Experienced DVR users, say analysts, know to "pad" their settings of specific TV shows anywhere from a minute to five minutes because of the vagaries of live TV. Yet even veteran DVR users, they say, couldn't anticipate a nine-minute overrun. This year, for the upfront ad season, broadcast networks have been making an extra effort to add DVR viewership data into commercial buys made by advertisers. A Fox spokesman noted that time-shifted "Idol" viewers will be accounted for in the special two-hour--and nine-minute--broadcast.
It's a harder fall from the top. Last night, the biggest show on TV--"American Idol"--and another strong contender--"Lost"--both dropped about 20% in ratings versus their finales last year--a poor performance on the last night of the season and of the May sweeps. But DVR playback may change those numbers dramatically. As expected, initial results show that Fox's "American Idol" dominated the final night of this television season, with an 11.5 rating/31 share among 18-49 viewers. It pulled in a massive 30.7 million total viewers on Wednesday night. As powerful as these numbers are, they also are down versus last year's data, which pulled in a 14.2/35 and grabbed 36.4 million. Viewers 18-49 were down 19%; total viewers dropped 16%. Perhaps more troubling is that this year's finale couldn't keep pace with its season's debut, which earned a record number of total viewers--37.4 million--back in January. Analysts say one of the key attributes of any reality show is that it can build to its season's conclusion. "Idol" is a little different. It typically starts strong in its debut (with all the wacky singers), then dips, and then climbs again. Another factor comes down to increasing viewer realization of reality show "results" programs. "Yesterday's "Idol" was just a glorified concert," says Jordan Breslow, director of broadcast research at Mediacom. "Viewers increasingly understand results shows--that they can be seen in really the last five or 10 minutes. The same thing is true with 'Dancing With the Stars.'" ABC's "Lost" also had a rocky road--being down over 20% in ratings virtually throughout the season. The show revived itself somewhat in recent weeks, and last night earned a 5.9/15 for its two-hour finale. The finale was down 22% from last year's 7.6. It also sank in total viewers, to 13.9 million from 17.8 million the year before. Still, Breslow says DVR usage must be taken into consideration for both shows. "Lost" for example, typically adds almost 1.5 million 18-49 viewers through DVR playback over seven days, which is equivalent to a 23% boost in its average 18-49 ratings. "Lost" is one the most DVRed of all network shows. "American Idol" isn't at this level when it comes to time-shifting. But Breslow notes that "Idol" can grow 12% or so with DVR playback, amounting to an additional 1.5 million 18-49 viewers to its seasonal average. No matter. "Idol" is still a powerhouse of network television--commanding big $50 million deals each from major sponsors such as Coca-Cola, Ford Motor Co., and AT&T, as well as $1 million-plus price tag for a 30-second spot in its finale. Not only that--but it remains, far and away, the only TV show to get 10-plus ratings among 18-49 viewers. ABC was the only network looking to make a race on Wednesday night. CBS ran repeats ("Criminal Minds" and "CSI: NY"). NBC offered a repeat special "Saturday Night Live in the '90s" and a news magazine "Dateline." Fox easily finished first for the night among 18-49s, with an 11.5 rating/30 share. ABC was a distant second--with less than half the numbers of Fox, at 4.6/12. CBS was third at 2.3/6, NBC fourth at 1.8/5, and Univision fifth at 1.7/5, CW sixth at 0.6/2 and MyNetworkTV seventh at a 0.2/1.
The median age of magazine readers continued to creep upward in the last five years, according to annual surveys from Mediamark Research Inc. On average, a collection of more than 90 popular magazines in a variety of categories saw the median age of their readers increase two years, from 39.8 to 41.8, between spring 2002 and 2007. Catering to an ad industry that is often focused on youth, magazine publishers might counter that two years isn't a big deal. What's more, median figures aren't "averages" in the traditional sense, but simply the midpoint of a group of data points. However, the two-year figure did outpace the population at large, where the median age increased 1.3 years from 43.4 to 44.7. And while the trend isn't universal, it does affect many of the leading titles when it comes to targeting certain ad sectors. It also accounts for the baby-boomer population, especially the younger end, heading into their mid- to-late 40s. MRI presents median-age data broken down by gender, as well as overall totals, allowing a more meaningful analysis of magazines with gender-specific appeal. For example, the median age of Consumer Reports' male audience--representing about 70% of its 4.3 million readers--rose three years from 46.1 in spring 2003 to 49.1 in spring 2007. Meanwhile, the median age of Men's Health's male audience rose 2.2 from 2002-2007, from 35.8 to 38, as Men's Journal rose 5.7 years from 33.8 to 39.5. Golf Digest's median male age rose 4.3 years to 48.5, as Esquire's jumped five years to 43. These magazines are indicative of a broader trend that also saw the median age of male readership rise one to two years at Rolling Stone, Popular Mechanics, Popular Science, Outside, Outdoor Life, and Men's Fitness. Auto enthusiast titles, which generally target men, also experienced gains--with Automobile jumping 4.1 years, Car and Driver 3.3 years, Hot Rod 2.1 years, Motor Trend 3.8 years, and Road & Track 3.4 years. Titles on the other side of the gender divide have also experienced an upward trend, including fashion and lifestyle books. From spring 2002 to spring 2007, the median age of female readers increased 2.1 years at Allure (to 30), three years at Bride's (to 32.9), 1.8 years at Glamour (to 33.4), three years at Harper's Bazaar (to 41.3), 2.4 years at Redbook (to 45.4), 4.3 years at Self (to 38.2), and 2.1 years at Woman's Day (to 49.8). Shelter and lifestyle titles also rose by varying degrees. The median age of female readers increased 3.4 years at Better Homes & Gardens (to 48.8), 2.9 years at Country Living (to 49.8), 3.8 years at Family Circle (to 52), 2.8 years at Good Housekeeping (to 50.1), 3.5 years at House & Garden (to 51.8), five years at Ladies' Home Journal (to 53.2), and five years at Martha Stewart Living (to 46.6). General interest titles, including newsweeklies, also experienced overall median age increases from 2002-2007. Here, Time rose two years to 45.8, U.S. News & World Report rose 4.4 years to 50.3, and Vanity Fair jumped 5 years to 41.7. Smithsonian is up 3.6 years to 54. The median age rose 3.7 years at Barron's, to 49.5, and 2.8 years at BusinessWeek, to 46.4.
The Census Bureau has cut the number of agencies vying for its expected $350 million account aimed at driving awareness for the 2010 count to four or five, with three from WPP. A decision will come in August. The four remaining for sure include Y&R and O&M in New York, JWT in Atlanta and Omnicom's GSD&M in Austin. The $350 million would be the total account size if a single agency, as would be expected, holds the account through 2011. The account covers all disciplines involved in trying to persuade every U.S. household, which together account for the estimated 302 million Americans, to fill out and send their forms back. The Census has said the form could take less than 10 minutes to fill out and would be one of the most intuitive and easiest since 1790. While GSD&M might be expected to handle the creative and media itself, the WPP shops might look to partner with a sister media expert such as Mediaedge:cia or MindShare. In 2000, Y&R ran the efforts with Mediaedge:cia as the media shop--which purchased a spot in the Super Bowl that year. The Census has begun laying the groundwork for its canvassing in three years, stating it will look to gain data on gender, age, race, ethnicity, relationship and whether a person is a renter or home owner. The bureau is in the midst of some trial runs in the San Joaquin County, Calif., and Fayetteville, N.C. areas.