Although the Internet may seem to eat into their local businesses, TV executives just got some good news about local news. During a presentation at the annual Association of National Advertisers (ANA) conference at New York City's Marriott Marquis hotel, Hearst-Argyle President and CEO David Barrett said results from a recent survey showed viewers are more engaged with local news than other news media platforms. Barrett said 55% of viewers say local TV is their primary source of news information. The Internet is a distant second place at 26%, and because of this local TV audiences believe local TV advertising is more effective that other news media. Local TV news brands are also benefiting from the Internet space. Right behind the use of search engines, local TV news Web sites are the most frequently used for local news and weather. Viewers go to local new sites 37% of the time, followed by 31% for cable news sites. Twenty-four percent go for reality TV video, and 23% for broadcast network news Web areas. The survey also noted what other news programming analysis has found: News, and local TV news in particular, is more DVR-proof than other program formats. Most viewers watch news live, so they are less likely to fast-forward through commercials. The biggest problem remains a disparity between local TV Internet traffic and Internet ad dollars that are spent. Barrett says local broadcast TV sites received only 9.3% of the online ad spending of $8.5 billion spent on local Web advertising in 2007--estimated to grow to $12.6 billion in 2008. He said Google got 43.7% and newspaper Web sites grabbed 33.4%. Newspapers are far ahead of local TV because there are more local ad salespeople working on local newspaper sites, he noted. The research was conducted for Hearst-Argyle by Frank N. Magid Associates. The Magid survey included more than 2,700 local news viewers, ages 25-54.
There's still the NBA and NFL, but now also TLC. Tony Ponturo, Anheuser-Busch's well-known media and sports marketing executive, said Thursday the beer giant has more than doubled the number of cable networks it advertises on, partly as it looks to further target women drinkers. A decade ago, A-B used 16 cable outlets. Now it's 35, including TLC, Discovery and Comedy Central. ESPN is likely to remain a cornerstone (and male-targeted History Channel is part of the mix), but Ponturo said: "We need to shift some of that money to the cable entertainment side." Still, 70% of A-B's overall TV dollars are spent in sports broadcasting, he said. Ponturo made his comments at an annual ANA TV and "everything video" forum in New York. Ponturo serves dual roles as A-B's vice president, global media and sports marketing, as well as president-CEO of Busch Media Group. At the same time that A-B expands its cable menu, it's been cutting a portion of its overall marketing budget going to TV at-large, from about 75% five years ago to some 59% now. Still, even with some online forays such as the traffic-challenged, branded-entertainment Bud.tv site, Ponturo said 90% of A-B's overall media dollars still go to "traditional" media. But there is an increasing emphasis on devising holistic campaigns with online incarnations, he added. A-B spent some $813 million in ad dollars in 2006--the latest year available--which was down 11.5% from the year before, according to Advertising Age figures. While the Olympic Games are arguably more entertainment than sports, A-B's link is a reminder that sports is still a lynchpin of its marketing portfolio. Ponturo said A-B remains firmly committed to the Olympics as a promotional platform. "In today's world, if you can have seven days of 14-15 ratings, that's a pretty good space to be," he said five months before the Summer Games in Beijing. And in-stadium marketing has taken on added importance as A-B executives purchase signs--such as a massive one in right field in Boston's Fenway Park and another in the University of Phoenix Stadium in Arizona (site of the recent Super Bowl)--then get a charge when a TV camera picks them up. The Boston sign made multiple appearances during Fox's World Series coverage; the Phoenix sign was visible behind Tom Petty on Fox's coverage of the recent Super Bowl halftime show. "The extension you can get with your signs is very clear," Ponturo said. (Of course, the displays are not just for the cameras, but also reach millions of fans in the stadiums who actually attend events.) Ponturo said A-B has never been much of a participant in the upfront, largely because the company finds it challenging to project what it will be spending over the ensuing 12 months. Marketers at the company are often unsure in May (during upfront season) what support a particular brand will need at various junctures. It's hard to know "what you'll be spending a year later," he said.
Universal McCann Thursday lost its fourth PR executive in two years, as Charlotte Fox stepped down as senior vice president-communications director. Fox's departure follows the hiring of Patricia Steele as global communications director in October 2007, but it also comes amidst a revolving door of PR executives at the Interpublic shop. Long-time Universal communications chief Charlotte Hatfield left in January 2007, as did PR manager Kristin Milligan. Hatfield was replaced by Jeremy Miller, who was recruited from Omnicom's TBWA, which he eventually rejoined. The shuffling occurs as Universal McCann continues to deal with some reputation management and new business issues. Despite having a high-profile management team, the agency's senior executives--especially CEO Nick Brien--rarely make public appearances and are not as visible in the trade press as other media agency chiefs. Over the past year, Universal McCann has also been overshadowed by sister Interpublic agency Initiative, which has been generating good vibes, positive coverage, and an impressive new business record. The PR turnover, and the dearth of senior management visibility, however, does not appear to have hurt Universal McCann's media attention. According to Google's news index, Universal McCann ranked fifth among the major media agencies in media coverage during 2007, just behind Omnicom's OMD unit, and just ahead of Publicis' MediaVest. Aegis Group's Carat dominated industry coverage during 2007, followed closely by Publicis' Starcom, and WPP Group's MindShare. Google News Indices For Major Media Agencies 2007 Last Month Carat 16,700 224 Starcom 16,300 659 MindShare 11,500 316 OMD 10,200 93 Universal McCann 8,710 123 MediaVest 8,460 131 Initiative 6,313 65 Mediaedge:cia 5,760 64 Zenith Media 5,130 113 Optimedia 2,600 45 Horizon Media 2,490 65 MPG 2,140 22 MediaCom 1,500 40 Source: Google News
Viacom witnessed major gains in the fourth quarter, thanks to DVD sales, video games, its movies and advertising revenues from cable networks. The company said net income rose 16.3% to $559.5 million, against the prior year's fourth quarter. Revenue climbed 19% to $4.25 billion. Its key divisions--media networks and filmed entertainment--saw fourth-quarter revenues gain by 18% to $2.4 billion, and 19% to $1.84 billion, respectively. Operating income climbed 15% for media networks and 40% for filmed entertainment. Worldwide advertising at the media networks was up 9% in the fourth quarter to $1.39 billion--a 5% gain from the third quarter. U.S. advertising growth was up 7%, largely because of better ratings at MTV and VH1. Worldwide affiliate fees grew 11% to $598 million. For the year, worldwide ad revenues increased 8% to $4.69 billion and worldwide affiliate fees grew 14% to $2.34 billion. One analyst during the earnings call was concerned that other competing cable networks seemingly grew at a faster, double-digit percentage ad pace during the period than Viacom's MTV networks. Philippe Dauman, president/CEO for Viacom, noted that older-skewing networks are seemingly doing well in that regard--including Viacom's own TV Land. For the quarter, its filmed entertainment unit was up 19%, due to big theatrical box-office successes, including "Transformers," "Shrek the Third," and "Bee Movie." DVD sales were also strong for "Transformers" and "Shrek the Third." For the year, Viacom lifted the filmed entertainment revenues by 28% to $5.48 billion. Home entertainment revenues rose 18% to $2.49 billion and television license fees grew 15% to $1.29 billion. Under its media network division, its worldwide ancillary revenues for the full year rose 27% to $1.07 billion, driven by big sales for the "Rock Band" video game, which was released in the fourth quarter. The division also benefited from royalties on other video games, including the "Guitar Hero" series.
Cablevision Systems Corp. surprised analysts with its net quarterly income. It moved into the black, as a result of improved sales from its core digital video, broadband and telephone businesses. Net income for the cable operator for the fourth quarter 2007 was $6.64 million, against a third-quarter 2007 net loss of $79.3 million, and a $23.9 million net lost in the fourth quarter of 2006. Fourth-quarter 2007 revenue was up 11% to $1.84 billion. Digital video subscribers rose by 43,000, or 1.7%, against the third quarter. Digital subscribers rose 7.4% overall in the prior year. Cablevision also grew its broadband business by 2.8% or 62,000 customers, versus the third quarter. For the full year, subscribers were up 12% from the December 2006 quarter. The company's best growth story came from its land-line phone business. Digital phone customers rose 6.8% or 102,000 over the third quarter. Subscribers rocketed up by 31.7% over the prior year. Analysts were somewhat surprised at Cablevision's results, considering that the company had previously warned analysts about Verizon's FiOS video service moving into the Cablevision cable territories. As a result, Cablevision's stock moved up sharply on Thursday--at one point rising 3.6% to $27.88. Rumors that Cablevision might sell its Rainbow Media division--the cable network division, which houses AMC, Independent Film Channel, WE: Women's Entertainment and various regional sports networks--may have helped. Revenues improved by a solid 14.2% over the previous year to $244 million. Advertising revenue at the cable networks climbed 15%, mostly from sales at AMC and WE. As media executives--such as CBS Corp. Les Moonves, and Josh Sapan, president of Rainbow Media--have noted previously, Rainbow has not seen a notable impact from the slowing U.S. economy. Cablevision Chief Executive James Dolan declined comment about a published report earlier this week that the company has hired Bear Stearns to help it explore a possible sale of Rainbow Media. Estimates are that Rainbow could be worth some $3 billion.
Celebrity chef Emeril Lagasse is going green. His latest series, "Emeril Green," will debut in June on Planet Green, Discovery Communications' new 24/7 eco-lifestyle TV network. And it has a strong brand tie-in: The series is shot exclusively at Whole Foods Market. "Emeril has inspired millions of people to experience the joy of food and cooking. Whole Foods Market has been a leader in making organic and sustainably produced food a part of our daily lives," said Eileen O'Neill, president and general manager of Planet Green. "Together, they are the winning ingredients for an innovative series that will redefine food shows for the new green culture." The show focuses on preparing meals using high-quality produce, seafood and meats, as well as fresh, seasonal ingredients. Lagasse utilizes the team at Whole Foods Market and other experts to hand-pick the best ingredients for every recipe. "Since my early days as a chef, I've always been passionate about using the freshest-quality ingredients from farmers, fishermen and ranchers," says Lagasse, who adds he wants to "think greener." "Emeril Green" will try to bring that message into America's kitchens. The daily series is produced by Karen Katz, the longtime executive producer of "Emeril Live" and her company, After Five Productions. It is produced in association with Discovery Studios. Planet Green is Discovery Communications' first 24-hour eco-lifestyle television network scheduled to launch in June to more than 50 million homes. It also includes an ecolifestyle site--www.TreeHugger.com--and the solution-oriented www.planetgreen.com. Both sites are already up.
Poor results in the fourth quarter of 2007 and January 2008 foreshadow another year of sliding revenues for newspapers. The news comes as no surprise to industry observers, following two straight years of declines in 2006-'07 in the face of Internet competition. Across the board, newspaper losses were driven by double-digit declines in classifieds, as well as accelerating declines in national and local advertising, including retail. The Washington Post Company reported an 11% drop in print ad revenues in the fourth quarter of 2007 to $129.6 million, compared to the same period of 2006. The company's full-year ad revenues dropped 13% to $496.2 million. The company's Newsweek division saw ad revenues fall 13% to $288.4 million. McClatchy said this week that revenues declined 14% in January 2008 to $176.8 million, compared to the same month in 2007. The decline was due mostly to a 16% drop in advertising revenue. Looking ahead, CFO Pat Talamantes said: "We were disappointed in our revenue performance in January, and foresee similar performance during the rest of the quarter." Also this week, Gannett said January revenues fell 7.5% to $575.4 million compared to 2007, as newspaper advertising revenues fell 9.2% to $371.4 million. The company's broadcast division also suffered a 6% decline in revenues. On Wednesday, Media General blamed an 8% drop in January revenues on a 14.9% decline in publishing revenue to $41.3 million, including a 17.3% drop in newspaper ad revenues, which slipped to $33.8 million. However, more detailed data was unavailable because the company said it will no longer publish results from specific newspaper categories --a hint that management expects things to get even worse at the newspaper division. Online revenues continued growing at most of the companies, but the rate of growth appears to be slowing compared to previous periods. Furthermore, online is still just a small part of total revenues at all these companies; that means online revenue growth can't offset losses on the print side. At the Washington Post company, online revenues grew 11% in 2007 to $114.2 million, down from a 28% growth rate in 2006. This also represented a slowdown in total dollars added--just $11.5 million in 2007 versus $22.5 million in 2006. In January, McClatchy's monthly online revenues grew just 2.6% to $14.8 million, down from the 14.6% growth rate in January 2007. In dollar terms, that's an addition of just $400,000 this January versus $3.6 million last January. Media General's local online revenues grew 11.8% in January, compared to 79% growth in the same month last year. However, the company didn't release specific dollar figures for the two periods. Likewise, Gannett didn't release online revenue figures, in dollar or percentage terms.
Despite its accelerating popularity, the Ultimate Fighting Championship has had trouble securing blue-chip sponsors--until Thursday, when it took a step in a promising direction. THe UFC said it has inked a deal with Anheuser-Busch in which Bud Light will become the exclusive beer sponsor of the mixed martial arts (MMA) league. The country's leading advertisers have shied away from MMA due to its often violent, few-holds-barred nature. Separately but related, there has been some discussion of whether UFC is a sport--a point amplified when a Pepsi marketer raised the issue at an industry event last fall. On Thursday, Dana White, UFC president, said in a statement that the A-B deal "definitely cements UFC as a major player in sports business." Under the deal, Bud Light signage will appear during 10 high-profile events on the mat where the fighting takes place. It will also appear on the bumpers on the sides of the eight-sided cage. Years ago, A-B was a pioneer in a similar vein when it cut deals to place the Budweiser brand on the mat and corner bumpers during boxing matches--now commonplace. Also Thursday, CBS said it would air MMA specials on Saturdays four times a year from UFC competitor ProElite. The multi-year deal for two-hour live broadcasts covers EliteXC fights, which were on CBS Corp.'s Showtime channel last year. Another MMA venture, the International Fight League, was recently dropped by MyNetworkTV. The three-year A-B deal with UFC-parent Zuffa, LLC was announced on the same day that the beer giant's head of global media and sports marketing, Tony Ponturo, told an industry gathering that A-B still places a premium on sponsoring sports telecasts. At the same time, A-B is also moving more aggressively into entertainment programming on cable. UFC programming appears on MTV Networks' Spike. Under the agreement, Bud Light will also serve as the official beer sponsor of the Zuffa-owned MMA World Extreme Cagefighting broadcasts on the Versus network.
MPA Hands Out Digital AwardsTime and Sports Illustrated took the top honors at the second annual Digital Awards hosted by the Magazine Publishers of America in New York on Wednesday. The awards, handed out during the fourth annual Magazines 24/7 Digital Conference, are intended to highlight magazine initiatives in the digital space, which have proliferated over the last few years. With Grammar Girl creator and podcaster Mignon Fogarty presenting, Web site of the year (recognizing news, social topics, business and finance) went to Time.com, followed by Businessweek.com and Slate magazine in second and third place. The Web site of the year for fashion and beauty went to Style.com, followed by InStyle.com and ShopVogue.TV in second and third place. In entertainment, People.com took the top spot, followed by Entertainment Weekly's EW.com, and TVGuide.com. Sports Web site of the year went to Sports Illustrated's SI.com; Runner's World took second and Bicycling.com third. Service and lifestyle top honors went to New York's nymag.com, followed by ConsumerReports.org and dwell.com. The magazine blog of the year award was taken by New York's "Daily Intelligencer. " Also recognized were Wired.com's "Danger Room," and Self.com's "Eat Like Me." Best online stand-alone video went to Slate V for "Justice Scalia Joins 24," with National Geographic's "Gorilla Massacre" taking second and Fine Woodworking's "Teaching Stradivarius" getting third. The best online video series went to Newsweek for "Voices of the Fallen." Consumer Reports was recognized for "Crash Tests" and Technology Review for its documentaries. A full list of awards, including for podcasts, mobile strategy, and online community, is available at the MPA Web site. Allure Will Lure Readers to Spas Conde Nast's Allure is set to launch a comprehensive guide to luxury spas, Allure Spa, kicking off with a circulation of 200,000 this September. The first issue will generate buzz and awareness, with free distribution to spas and salons. In addition to listing the top spas in the U.S. and abroad, the Allure guide will include content about popular treatments, diets, and specialty spas offering medical treatment or certain kinds of recreation. Country Living RevampsCountry Living is getting an editorial makeover that will bring new content areas while generally maintaining the title's traditional feel, according to Hearst, which publishes the magazine. Beginning with the May issue, the magazine will feature more decorating, fashion, and gardening content. Executives hope these new content areas will attract advertisers in related categories, offsetting some recent losses due to the downturn in the housing market. Hearst and Motown to Host "Ultimate Prom" Hearst Magazines Digital Media is partnering with Universal Motown Records to put on an uber-glam prom for the senior class of St. Francis Preparatory School in Queens, New York on May 30, including appearances by Universal stars who are popular with the teenage set: JoJo, Drake Bell, Lloyd, Suai, Jada and a surprise guest. The prom, and all the various preparations for it, will be featured on a video channel at MyPromStyle.com, the artists' individual sites, and Universal Motown's site. MyPromStyle.com is part of Hearst's Teen Network, linked to Cosmogirl.com, eSpin.com, Seventeen.com, and Teenmag.com. Also included in the coverage will be a sweepstakes to win CDs, autographs, and personal phone calls with the performers. Licciardi to Publisher at AudubonAudubon announced two management appointments this week, with Greg P. Licciardi named to the newly created position of publisher, and Edward Whitaker assuming the role of managing director of marketing and publishing. Licciardi joined Audubon in October as managing director of advertising, and has since increased the mag's ad revenue 40% during the first five issues of fiscal 2008. Time Out Raises CashTime Out's founder, Tony Elliott, has hired an investment bank to help raise money for the expansion of the magazine--probably through the sale of part of the company, according to Portfolio.com, which first reported the news. According to the report, Elliott wants to expand Time Out to Los Angeles, Dallas, Boston, San Francisco, Seattle, and Miami. These new editions may begin as Web-only publications, with potential print editions to follow. Time Inc. Makes Promotions Time Inc.'s Media Group has named Mary Haskin vice president for marketing and sales development in its corporate sales and marketing group. Previously, Haskin worked for Saatchi & Saatchi in a variety of positions, including executive vice president and senior group account director, as well as one of the founders of oneseven, a 17-member team of former Saatchi & Saatchi personnel who created a specialty group at Interpublic.
Maybelline's recent link with a series that carries "Lipstick" in the title, of all things, is a viable attempt at breaking through the proverbial clutter. It's just the execution could use a touch up--or more. During a pause in a recent episode of NBC's new drama "Lipstick Jungle," there was a Maybelline New York vignette featuring the cosmetics marketer's spokesman/makeup artist Chuck Hezekiah. He promises tips on how to get that "Lipstick Jungle Look"--how to take on the same presence as one of the show's main characters. In that Feb. 14 show, Hezekiah intends to offer help to those aspiring to look like "Nico," a high-powered New York magazine editor played by Kim Raver. "Nico," for sure, has a certain look that could indeed inspire aspiration. But anyone that parses Hezekiah's description of her might be a bit spun around. "She's strong, driven, confident, but secretly vulnerable," he says. Then, he cuts right into "Nico's skin has that natural, healthy look." It seems unnatural. Hezekiah then attempts to demonstrate how to give a woman the character's look (the show is based on a book by "Sex and the City" author Candace Bushnell and focuses on the lives and loves of three high-powered friends in the Big Apple). He uses Maybelline's Mineral Power liquid concealer on her (one of the top product placements of the week, according to measurement firm iTVX). When finished, he looks into the mirror (camera, really) and displays a thumbs up, then offers a "Wow." "Powerful, with a little bit of innocence just like Nico," he concludes. (Viewers are then directed to NBC.com, where there is a Maybelline micro-site.) It's not clear exactly why--the enthused thumbs-up which seems like something out of an ad when hula hoops were all the rage, the hint that using a Maybelline product can make one look like a very camera-ready actress, or something else--but the whole production feels less than genuine. Sort of like filler programming during the overnight hours. More broadly, it makes one feel a bit chagrined for the entertaining Hezekiah, who pleasantly doesn't seem to take himself too seriously. In 2006, he had a role as a Maybelline representative on the WE network's reality-competition series "Dirty Dancing." And the production quality on that show may have been worse than a corporate software training video. Crafting successful branded entertainment, like all advertising, is of course always a shot in the dark. And the ability to find the right milieu can hardly be found in a textbook, but maybe Maybelline just wasn't born with it.
ProductShowQ-Ratio Axe Bullet 10 Items or Less 2.8250 T-Mobile Real World/Road Rules Challenge 1.9793 Loreal Paris Project Runway 1.9074 Kleenex Monk 1.3889 Alltel Psych 1.3729 Maybelline Lipstick Jungle 1.2665 iPhone Boston Legal 0.9885 Click here to view these placements. Data and analysis provided by iTVX.