To signal it's ready for the New Media Order, top Grey executive Steve Hardwick gave the advertising business a new buzzword Thursday: "tra-digital." During a panel discussion at Advertising Week that repeatedly focused on how an agency should meld, merge, fuse and integrate its core competency with the pressing need for new-media expertise, Hardwick said he's looking to turn Grey into a shop that seamlessly blends "traditional" work with "digital" marketing strength. "We aim to sort of smush the two together," the president of Grey's New York office said of what he hopes will become a tra-digital. paradigm. En route, Grey has weaved its digital offshoot Yerg (a palindrome for Grey) into the flagship's operations. If clients want face time on national TV, they might get Facebook along with it. While Hardwick, an English major, claims to have coined the "tra-digital" moniker, he might only have dibs on Madison Avenue. Five years ago, DreamWorks executive Jeffrey Katzenberg used the term when discussing the techniques behind a new animated release. With the possibility that Grey could use the label for its own brand-building, some of Hardwick's colleagues might wish he'd kept it in-house. It's yet to be trademarked. Thursday's panel included seven agency chiefs. Expanding on how he'd like Grey to evolve, Hardwick, who has led the agency's flagship New York office for less than five months, said he'd like to shatter boundaries between account management, strategic planning and other entrenched silos. And he's seeking a less hierarchical structure. Guiding him, he said, is his previous experience as president of Strawberry Frog, a slimmer, creatively focused agency where "everybody did everything." USA Today has called it "small and flexible, but (with) a global perspective." As Hardwick looks to reform Grey, fellow panelist Mark Kingdon, CEO of digital agency Organic, said as "everybody's dealing with the legacy businesses" and exploring how they intersect with emerging media, a new agency model will likely emerge within the next 12 to 18 months. Any archetype will have to have expertise in not just Second Life, but the "third screen," said Bob Greenberg, CEO of IPG's R/GA, a digital agency to which some have referred to as a game-changer. As soon as next year, Greenberg said "the big change is going to be Mobile 2.0." Billions of people hunger for their handheld devices to offer information and entertainment. Advertising that works there will need to be created, he said. "We sometimes call it the 'third screen,'" Greenberg said. "That will become the 'first screen,' ultimately." Steve Hayden, vice chairman of Ogilvy & Mather Worldwide, added that agencies will need to develop improved synergies with public relations groups. A successful campaign in the Information Age needs a robust PR element--and Ogilvy Public Relations now shares the same building as its namesake.
Days after announcing that the season premiere of NBC's "Heroes" had become the first network TV show to report via Nielsen's new unduplicated cumulative ratings, Nielsen executives say they are rethinking whether they might also enable cable networks to report the same kind of ratings. In August, Nielsen announced plans to begin offering the new ratings effective this season, but said they were not likely to be that common, because they require broadcast networks and syndicators to rerun the same episode of a show with the same advertising intact to qualify. Instead of reporting ratings for each airing separately, Nielsen withholds the ratings for the initial run, and reports a single rating reflecting the unduplicated audience for both runs after the second airing. The speed with which NBC embraced the opportunity caught some cable and ad agency executives by surprise and following a series of conversations with Nielsen, the ratings firm says it is now considering ways that the same process can be applied to cable networks. "We are rethinking this new rule," a Nielsen spokesman confirmed for MediaDailyNews. "We received a lot of feedback from clients over the past two days about the way the rule is being applied and we are evaluating whether we should amend it. No decision yet but it's under consideration." The executive said Nielsen's systems currently are not set up to generate the new ratings for cable networks because they do not currently supply Nielsen with the kind of "lineup" data that broadcast networks provide, and there are also issues with various time zone feeds for certain cable networks. He said the broadcast networks pushed to make these changes last year, but cable executives were indifferent at that time even though they were offered the same opportunity. "It's doable, but it's also a long process," the spokesman said. "We went through that long process for broadcasting at their request. Last year the broadcasters proposed this to us and we researched it, discussed the implications with clients and moved ahead with the change. Last year when this was being discussed, the cable industry did not have the same interest in making a change."
Will the cable industry finally get sizable competition from a more lethal mix of satellite and Internet-delivered TV programming? One industry analyst believes so. On the hunch that AT&T could purchase EchoStar Communications, Thomas Eagan of Oppenheimer & Co. upgraded the satellite TV distribution company to a "buy." That was enough to see EchoStar's stock rally up as high as 6.2% in late afternoon trading to some $46.18 a share. The analyst said AT&T's TV service, U-Verse, has been behind the eight ball--over-budget, behind schedule and lagging to its phone competitor Verizon Communications' FiOS system. AT&T U-Verse has some 100,000 subscribers. Verzion's FiOS has some 600,000 subscribers. AT&T could make a big leap in buying up EchoStar, which has some 13 million U.S. subscribers. For some time now, business analysts have been salivating over the possible combination of TV satellite businesses and the newfangled Internet-delivered TV services. At the same time, there were other noises at EchoStar. This week, it agreed to buy Sling Media, a video technology company that streams television into computers through Internet access, for $380 million. Also this week, EchoStar said it was considering splitting the company into two--one which would be primarily be the highly profitable Dish Network TV satellite programming service; the other of technology assets, including Sling Media, its set-top-box business, corporate satellite services and international operations.
A week after Steve Fredericks stepped down as CEO of U.S. ad monitoring firm TNS Media Intelligence, its U.K.-based parent is consolidating TNS MI with TNS' U.S. media research operations, TNS Media Research. The new consolidated U.S. research organization will be headed by Jean-Michel Portier, the former global head of TNS Media Intelligence. TNS executives were not available for comment, and it was unclear how the organizations were being restructured or what would happen with key executives, including Bev Andal, who last week was promoted to president of TNS MI following Fredericks departure. Andal had been COO. In a statement, TNS said it was merging the two organizations because of the "significant long-term business opportunity of digital media measurement," and alluded to "the significant shift resulting from media fragmentation and growth of the Internet." "Everything about the Internet is growing - the number of users, the range of applications, the depth and breadth of online purchasing, online advertising and its share of online marketing expenditure," David Lowden, CEO of TNS stated. The new organizational structure, meanwhile, appears to more closely mirror that of TNS' chief rival in the U.S., Nielsen Co., which historically has had its Monitor-Plus ad tracking firm closely integrated with Nielsen Media Research. Monitor-Plus is a unit of NMR, and recently became an integral component of its new average TV commercial minute ratings, which became the currency of the TV advertising marketplace effective this season. Nielsen Co. also has been working to more closely integrate other assets like its recently acquired Nielsen BuzzMetrics unit, which monitors and analyzes online buzz, into its other media research and competitive tracking services. That's something TNS alluded to, as well, noting, that it would be "aggressively" developing new digital measurement tools linking TV occurrences, creative executions, "page impression ratings," and "clickstream analysis," with various online measurement including analysis of editorial content and the audiences of blogs. Among the key acquisitions that TNS MI made under Fredericks' reign was the purchase of Cynfony, a competitive intelligence firm that monitors online buzz and conversations, much the way Nielsen BuzzMetrics does. In a related move, WPP Group Thursday said it boosted its investment in blog and social network tracking start-up Visible Technologies, as part of a $12 million round of financing with venture capital firm Ignition Partners.
With Hearst-Argyle's stock trading 11% higher than an offer price from Hearst Corp. to buy out shareholders and take the station group private, a special committee of the H-A board predictably rebuffed that bid Thursday. Analysts now expect Hearst Corp. to raise its bid above the $23.50 per share it's offered. How much is the question, of course--and Hearst Corp. could still walk away, or perhaps explore a third option to gain full control. H-A operates 29 stations and owns a stake in a company that develops Web sites for local channels. The stock closed at $26.05 on Thursday. The stock price has risen since Hearst Corp. indicated it would make the offer, which became official Sept. 14, as investors looked to induce an increased offer. If shareholders now follow the two-person special committee's recommendation and reject the offer--which is almost a foregone conclusion--they risk Hearst Corp. walking away and the stock plummeting below its pre-offer price. However, Hearst Corp. has looked at taking H-A private since at least April 2006, and isn't likely to abandon its pursuit now after just one offer. A report from Bear Stearns suggests a per-share price of $26.50 to $27 a share is more in line with H-A's value--still less than H-A's 52-week high. Hearst Corp. owns about 74% of H-A's approximately 94 million shares and needs to acquire an additional 16% to get to the 90% it says it needs to take H-A private. In addition to its stake in H-A, the privately held Hearst Corp. owns a portfolio of magazines and newspapers as well as new media ventures. The H-A board's special committee is comprised of two independent directors, each of whom received $150,000 for evaluating the Hearst Corp. bid. Among the reasons for its rejection is a belief that the timing was intended to take advantage of Wall Street turmoil and a negative outlook for the local station business--both of which the special committee now believes have "improved" since word the offer was coming came down in late August. The special committee's decision came a day after H-A announced it has reached a retransmission consent agreement with Cox cable, giving it payments for stations it runs in six markets, including a duopoly in Orlando. Cox is the country's third-largest cable operator. The prospect of increased retrans dollars, as well as a flood of political ad dollars next year, have been cited by opponents of the Hearst Corp. bid as reasons why the offer should be rejected.
Effective measurement of in-store media and consumer shopping habits isn't far off, according to the Nielsen Company, which said Thursday it has made substantial progress in formulating a new in-store media metric. The push to produce it, at the behest of the PRISM Consortium of retailers, should yield syndicated data sometime in 2008, according to Nielsen, which is working with the In-Store Marketing Institute. One of the most important steps is a nationwide trial which began in April and will end in December. The trial phase involves tracking traffic and exposure to marketing messages in 160 stores around the country. The test phase of the PRISM (Pioneering Research for an In-Store Metric) method calls for counting traffic in store aisles both digitally and manually, but the final version will rely solely on digital measurement. By multiplying in-store traffic by opportunities to see marketing messages, PRISM hopes to produce something similar to the gross ratings points used in TV advertising. According to Nielsen figures, the number of marketing messages shoppers could potentially be exposed to is enormous: 3,500 during a visit to the grocery store, 5,000 in a mass merchandiser and 2,300 in a drugstore. Nielsen's research has already yielded some intriguing insights about shopper behavior. For example: foot traffic doesn't translate into purchases. A higher proportion of visits to the salty snack food aisle lead to purchases than do visits to the dairy aisle. Early PRISM data also confirms that shopping trips with children result in more purchases--even in categories of low interest to kids, like hair care and water. A counterintuitive detail: the presence of kids doesn't have much impact on candy sales. The PRISM project was first unveiled in September 2006, with a list of major supporters, including A&P, Clorox, Coca-Cola, ConAgra Foods, General Mills, Group M, Hewlett-Packard, Kraft, Kroger, Mars, Mattel, Miller Brewing, Nintendo, OMD, Procter & Gamble, Pathmark, Price Chopper, Rite Aid, Safeway, Sears/Kmart, Starcom MediaVest, Stop & Shop, Target, Unilever, Walgreens, Wal-Mart and Winn-Dixie.
Martha Stewart's food line at Costco will kick off with a smoked ham in time for Thanksgiving, while her brand will soon extend to a Wikipedia-like function, to be known as "Marthapedia." Stewart said Thursday the ham would be available at the retailer for the holidays, while a "wonderful array" of products such as prepared dinners are coming next year. The Seattle Post-Intelligencer, Costco's hometown paper, previously reported that Stewart's offerings would simultaneously carry Costco's in-house "Kirkland Signature" label. While the deal gives Stewart yet another outlet to sell products, and the retailer is growing and boasts a high percentage of upscale shoppers, Costco is a curious choice because it does so little advertising--only $138,000 for the first six months of this year, according to TNS Media Intelligence. That pales in comparison to the millions Macy's is spending this fall for the launch of a Stewart line of homewares with flashy TV ads. "Marthapedia" will essentially serve as an online handbook to provide user-friendly info on topics such as home and garden, family, food and others. The entries will initially be developed by Stewart's editors, but like Wikipedia, consumers will be able to link in and suggest their own recipes or gardening tips. However, unlike Wikipedia, where consumers can freely update the content, the editors will serve as gatekeepers, determining which consumer-generated info should be added. Stewart said Marthapedia would be launched soon, but declined to provide more details. Stewart, the namesake behind Martha Stewart Living Omnimedia (MSLO), a company that suffered as she dealt with well-publicized legal issues in recent years, spoke at an Advertising Week event in New York. Stewart also said that while the company has been slow to move abroad, it's poised to begin aggressive international expansion beyond the availability of her eponymous TV show in 44 countries. Options could include MSLO's magazine fleet. "I think we're a little tardy, but (that's) because of three years of legal problems," she said. MSLO's shares are trading at near $12, well below their approximate $23-per-share 52-week high. "I think she has upgraded her image," Bob Nelson, a Costco vice president, told the Seattle paper in May. "I understand the background, but my understanding is she is still pretty popular and we plan to develop some cool items and leverage her brand and our brand."
True to early network research, NBC's "Bionic Woman" premiere -- in the third night of the new season--earned some high-flying, high-tech time period-busting numbers. The show pulled in a Wednesday night-leading Nielsen preliminary live program plus same day 5.5 rating among 18-49 viewers. It bested ABC's highly touted "Grey's Anatomy" spinoff "Private Practice"--but not by much. "Practice" still offers a stellar 5.1 rating. The two shows ran against each other in the 9 p.m. time period. But the biggest surprise of the night wasn't NBC's remake of the 1970s TV hit about a woman equipped with high-tech limbs. It was NBC's 10 p.m. show "Life," which amazingly won its time period--albeit with a sturdy 4.1 rating. "Life"--about a cop who returns to the force after many years of being jailed for a crime he did not commit--shocked CBS' "CSI: New York," which could only muster a meager 3.7 rating, the lowest premiere ever for the show. ABC's debut of "Dirty Sexy Money" came right behind the "CSI" franchise--more or less as expected, with a respectable 3.6 rating. Critics didn't give "Sexy Money" that much of a chance--yet it came within a rating whisker of taking out "CSI." Still, don't give any of these new 10 p.m. one-hour dramas the thumbs-up just yet: Both "Life" and "Sexy Money" let 11% of their viewers wander away in their second half-hours. ABC claimed the big win of the night--it beat NBC with a 4.2/11 to NBC's 4.1/11. ABC had the advantage of having a strong 8 p.m. "Dancing with the Stars: Results Show," which easily won its time period with a 4.0 rating. Some new shows that had a head start of debuting a week ago fell slightly this week against all the heavy competition, which was expected. At 8 p.m., Fox's "Back To You" dropped 10% to a 2.8; CBS's "Kid Nation" slipped 7%, also to a 2.8. Two 9 p.m. shows witnessed sharper declines: Fox's "Kitchen Nightmares" withdrew 23% to a 2.4, while CW's "Gossip Girl" fell 27% from target 18-34 viewers to a 1.6. For the night, CBS took over third place--well behind ABC and NBC--with a 3.3/9. Fox was next with a 2.5/7; CW was behind Fox at a 1.8/5. Univision locked up last place at a 1.6/4.
The Week Gets New Online Mission The Web site for The Week is moving to a new location and shifting from weekly news roundups to daily news roundups, giving a more prominent role to breaking news. The new site, TheWeekDaily.com, will replace TheWeekMagazine.com. Finding a suitable online strategy has been especially challenging, given the mission of the print title: condensing global news into a digest format. The new online strategy allows the Web site to entice readers with fresh content that doesn't undermine the appeal of the print edition. Executives expect the new Web site will appeal to the magazine's print advertisers in categories including technology, financial, TV, luxury, foreign cars and travel. Inaugural advertisers for the new Web site include Sony and Hilton. Readers will be alerted to the new Web site with a cover wrap of the print magazine and emails from the publisher. The Week's American edition has succeeded in attracting an educated, well-heeled readership since its launch in 2001. In the first six months of 2007, its newsstand sales rose 6%, compared to the same period in 2006, and subs 12%, for a total circulation of 494,683, according to figures from the Audit Bureau of Circulations. Ad pages increased 11.4% to 282 in the first half of 2007. BusinessWeek Gets Redesign, Launches New Web ContentBusinessWeek will have a new look beginning Oct. 12, according to publisher McGraw-Hill. The revamp--led by art director Andrew Horton in cooperation with Modernista, a design firm--will clean up the layout for a simpler, tighter look. The magazine will also experience an editorial shift to include more global content. Also this week, BusinessWeek's Web site launched a new "Managing Channel," replacing its "Careers Channel," with advice for execs on executive recruitment, crisis management, strategy and execution, and team building. It features an expanded version of BusinessWeek's popular feature, Best Places to Launch a Career. Multimedia content includes how-to-videos and slideshows as well as mini-lectures. Us Weekly Raises Cover Price Gossip-mongers will find their vice a little more expensive. Wenner Media is raising the cover price of Us Weekly from $3.49 to $3.99, beginning with the Oct. 12 issue. Us Weekly isn't alone in raising its price: People also raised its price from $3.49 to $3.99, effective Sept. 10, and Bauer Publishing plans to raise the cover price of In Touch and Life & Style from $1.99 to $2.99. Runner's World Ups Rate BaseRunner's World is increasing its rate base yet again, from 630,000 to 640,000, effective January 2008. The increase marks the 12th straight year with a rate base increase by the title. In the last five years, the rate base has increased 23%. Better Homes and Gardens Intros Mobile RecipesBetter Homes and Gardens introduced a new service to deliver recipes to mobile devices. The service, called Recipes-on-the-Go, allows readers to browse hundreds of recipes on their cell phones or other mobile devices, or search the database by keyword. The service, developed by Meredith Corporation with Mobifusion, is currently only available to AT&T customers. Jeff Wellington Named Publisher, Reader's Digest Jeff Wellington is the new publisher of Reader's Digest magazine. Wellington previously served as president and group publisher of the Parenting Group, purchased from Time Inc. by Bonnier Corporation in March. Wellington begins Oct. 22. Olivia Monjo Named EIC Home Olivia Monjo, the editor in chief of Woman's Day Special Interest Publications, has also been named to the position of vice president and editor in chief of Home magazine. Jack Grant will remain vice president and publisher of Home. The magazine has taken it on the chin in the first half of 2007; ad pages fell 6.5%. Traditional Home Loses Pam DanielsTraditional Home is out a publisher, following the resignation of Pam Daniels last week, who was promoted to publisher in August 2005 after serving as associate publisher. Although no reason was cited for Daniels' departure, Traditional Home has been struggling at the newsstand, with single-copy sales down 11.6% in the first half of 2007 compared to 2006, according to the Audit Bureau of Circulations. Amy Steiner Named Exec Director For Brand Marketing At SI Amy Steiner has been named executive director of brand marketing at Sports Illustrated. Steiner is a 12-year SI vet who most recently held the position of director for client marketing. Freilicher Named Publisher of Southwest Art Susan Freilicher was promoted to the position of publisher at Southwest Art magazine, owner Active Interest Media announced this week. She had served as associate publisher at the title since 2004.