People in the advertising business tend to take Nielsen data pretty seriously, but a top company executive Thursday disclosed that Nielsen data is now being used for purposes far more consequential than TV ratings or product research. It's being used to detect and counter terrorist attacks on the U.S. homeland. During a free-wheeling keynote at Media magazine's Outfront conference in New York, Jon Mandel, president of NielsenConnect, touched on the dizzying array of consumer information databases now at Nielsen's disposal, including "disease plume tracking" that is now being used for "counter terrorism." "You may think lives depend on television ratings, but trust me, in disease plume stuff, they really are at stake," Mandel quipped. Following the speech, Mandel declined to disclose what entity or entities Nielsen is providing the information to, though it presumably is the Department of Homeland Security. He did, however, explain how the "plume" data is used. If prescriptions for drugs used to treat infectious diseases begin to spike in a market, the Nielsen data can track how it spreads and whether it is taking on epidemic proportions or migrating in a way that might reveal a biological attack. Mandel's speech focused on the broad array of data the Nielsen Co., now has at its command, and how units like NielsenConnect are putting them together to reveal consumer insights and market intelligence for clients. Mandel, a former top Madison Avenue media honcho before joining Nielsen, cited Nielsen's recently acquired NeuroFocus unit, a Berkley, Calif.-based company that measures brainwave activity and biometrics who reveal how people reacted physiologically to marketing and media content. Mandel said the NeuroFocus data is revealing, "what commercials drive what purchases and how. And also what commercials watched by what product purchasers get viewers to stay and watch the next commercial, which makes the B position more valuable. We can even do that for Web sites, magazines and so on. "I don't know what this is going to unleash, but we're going to unleash this stuff and you guys are going to have to deal with it," he forewarned.
A panel of both buyers and sellers Thursday was in general agreement that the first-year C3 metric has been a plus, although some offered opinions on how marketplace currency could be improved. "A good step forward" is how MediaVest's Pam Zucker labeled C3, although she added that the search continues for additional metrics--"overlays"--that can be used in concert with it to provide more detailed information. ABC sales chief Mike Shaw suggested that commercial ratings should be extended to include DVR viewing for not just the three days after the live broadcast, but seven days. Potentially called "C7," that metric would give ABC more opportunities to gain saleable inventory as four more days of DVR viewing are added into the ratings. Zucker responded that C7 "might work for some advertisers," but C3 would probably need to remain in operation for marketers whose messages have short shelf-lives. "I think (C7's) OK if we're comfortable having multiple metrics in the marketplace," she said. While some agencies such as Starcom have pushed to use an array of currencies going all the way down to second-by-second ratings, the mix can lead to a heightened workload as a network or agency has to process so many different currencies for so many different deals. Both Zucker and Shaw appeared on the panel at MediaPost's annual Outfront event. They were joined by MindShare's Shari Cohen and Fox sales chief Jon Nesvig. On C3 in general, Cohen said: "We have seen positive results." She cited networks looking for ways to alter the structure of breaks in late-night to retain commercial viewers, and their willingness to increasingly give over the first spot in a pod-the "A" position to advertisers instead of keeping it for themselves for promos. On a separate topic--NBC's efforts to cut down on the number of pilots for new series by going straight from script into production--Shaw said that ABC would not be following suit. "We think it's silly," he said. "It's kind of like taking a sketch and going into production on a new auto." Potential hits, Shaw said, are not produced in one shot. Pilots provide a feel for a show, and allow for tinkering, perhaps after focus groups have weighed in. He said that the pilot for "Grey's Anatomy" was ready by September in the season it launched, but ABC felt it needed to make adjustments and held off for a mid-season debut. "I want a pilot that's really been tested," he said. Zucker said issues of producing pilots or not are largely "irrelevant," but "what's important is to have early conversations" where networks and advertisers can discuss how a show might fit into a marketer's needs, and then perhaps develop customized solutions. NBC has said that was one reason it unveiled its schedule much earlier this year than the traditional mid-May upfront week. In regard to the economy and its potential effect on the ad market, Fox's Nesvig said: "We haven't seen a dramatic falloff, (but) who knows? It's out there--there is a lot of uncertainty." Nonetheless, he said, broadcast networks are better-positioned to weather any downturn compared to, say, the Internet. He said Fox deals with 250 to 300 large national advertisers that have been through recessions before and view them as an opportunity to grow share--and continuing to advertise during the downturn is a key component. Cohen had a slightly different take, saying that the economic turmoil "is certainly starting to have an impact on all of our clients." And much of that has emerged in just the last three months, she said, as gas prices have risen and consumer confidence has fallen.
WPP Group, the world's largest buyer of media, this morning reported a 14.1% increase in first quarter revenues, reflecting, "the continued steady overall economic environment, despite the continuing uncertainty stimulated by the credit and liquidity crisis and the much heralded slowdown in the United States." Unlike previous quarters in which WPP's advertising and media investment operations fueled its growth, WPP's agency units were the group's laggards, albeit still contributing a healthy 10.2% revenue growth during the quarter. WPP is the parent of GroupM, which includes MindShare, Mediaedge:cia, MediaCom and Maxus, and also owns ad agencies such as JWT and Y&R. Since currency fluctuations have had a pronounced affect on the global marketing services organization, WPP also cites its revenue growth on a "constant currency" basis. "By communications services sector, branding & identity, healthcare and specialist communications (including direct, Internet and interactive), showed the strongest growth," the company stated, "with constant currency revenues up 18%, with public relations & public affairs up almost 10%, information, insight and consultancy up over 6% and advertising & media investment management up over 4%."
OMD USA promoted senior West Coast media executive Monica Karo to president of integrated accounts. Karo had been managing director of OMD West. In her new position, Karo will work on West Coast accounts Apple and Nissan in the U.S. and globally. She reports to Page Thompson, CEO of OMD North America. OMD says it made the appointment as a part of its corporate restructuring to customized services of client accounts. "As our clients' businesses evolve, it has become critical to expand our integrated account servicing and to focus on our clients' needs on a global basis," said OMD's Thompson in a statement. Karo, a 25-year media veteran, has been with OMD since its creation in 2002, joining the media firm from TBWAChiatDay, where she had been chief media officer. Prior to her these roles, she was partner in her own agency in 1985.
The Senate Commerce Committee voted last week to block a controversial rule change by the Federal Communications Commission that would make it easier to own broadcast stations and newspapers in the nation's top markets. The resolution, sponsored by Sen. Byron Dorgan (D-N.D.), comes after months of criticism directed at FCC Chairman Kevin Martin. Opponents say Martin did not leave enough time for public and congressional review of the proposed rule changes. To take effect, the resolution blocking the rule changes must now be passed by a full vote of the Senate. This is likely because the resolution already has bipartisan approval, including the Commerce Committee's senior-ranking Republican, Sen. Ted Stevens of Alaska. Over the last year, the proposed rule change has encountered united opposition from both Democrats and Republicans, who say they are concerned about excessive concentration of media ownership in the hands of a few companies. The planned revision would have loosened FCC rules dating to 1965 that prevent a single company from owning both a TV or radio station and newspaper in the same market in the top 20 media markets. The loosening of the restrictions on cross-ownership of media properties was initially approved by a controversial 3-to-2, party-line vote in the FCC held on Dec. 18. Martin set this date as the deadline for an FCC vote, although Senators and Representatives from both parties urged him to delay the vote until the New Year to allow more time for public discussion and comments. Martin responded that he was hurrying the vote because he didn't want the rule change to become a political football in an election year. Martin, a Republican, was supported by the FCC's two other Republican members: Robert M. McDowell and Deborah Taylor Tate. The Commission's two Democrats, Jonathan S. Adelstein and Michael J. Copps, both voted against the rule change. Copps and Adelstein also complained to Congress and journalists that Martin was ramming the vote through over their protests and requests to delay. In recent years, companies like News Corp. and Tribune have been allowed to own broadcast and newspaper properties in violation of the 1965 rule after receiving waivers from the FCC. In the case of News Corp., Rupert Murdoch received a waiver allowing him to buy the New York Post because it was considered a "failing" newspaper at the time. Now Murdoch--who also owns two television stations, WNYW and WWOR--is seeking to renew waivers allowing him to own both these stations, the New York Post, and the newly acquired Wall Street Journal. He also recently entered into an agreement to buy Newsday from Tribune Co.--a deal that observers say could be blocked by the FCC's new rules, ironically enough, as they only allow cross-ownership of one newspaper and broadcast property per market. Newsday would be Murdoch's fifth.
ESPN's Spanish-language U.S. channel will begin offering ratings as part of a Nielsen service that measures viewing for Hispanic homes. Ratings for ESPN Deportes will begin April 28, giving buyers a few weeks for evaluation prior to the upfront. Called the Nielsen Homevideo Index Hispanic service, ratings are extrapolated from Nielsen's national sample. Hispanic homes make up 12%. The ratings "will provide sponsors with an important additional metric to realize the value of investing on our network," said Paul Green, vice president of advertising sales at the network. ESPN Deportes joins five other Spanish-language cable networks in offering ratings from the 12% sub-sample.
The out-of-home advertising arena, long poised for a shakeout, saw a big international play last week with CBS Outdoor's $110 million purchase of the International Outdoor Advertising Group, the largest billboard owner in South America. The deal will boost CBS Outdoor's reach with over 17,000 new surfaces, mostly located in Brazil, Argentina, Chile, and Uruguay. The news follows several years of predictions that outdoor advertising will see a wave of consolidation both in the U.S. domestic market and abroad. But despite these predictions, there haven't been many noteworthy deals since 2006. In March 2006, the U.S. outdoor company Titan bought Maiden, a British outdoor advertiser in financial distress. Shortly afterward, Clear Channel Outdoor acquired Van Wagner's British division in May 2006, as well as Interspace, an airport advertiser, around the same time, on the home front. International competitor J.C. Decaux made just a few mid-sized deals in 2007, including several joint ventures in the Middle East. That was a relatively quiet year compared to 2006, which saw the acquisition of MAG International, an Eastern European outdoor advertiser, VVR-Berek, a German outdoor company serving Berlin, and several Ukrainian and Russian outdoor companies in 2006. This year, however, the pace may be picking up. In March, Lamar paid $100 million for Vista, the outdoor division of Entravision Communications. The acquisition brought 10,600 installations into Lamar's network, mostly billboards and poster spots in New York and Los Angeles.
Sony Pictures Television's multiplatform video net is now available on Sprint TV. Honda is the debut sponsor for the effort. The ad-supported Minisode Network features four- to six-minute versions of various TV shows. The 15-second ads will appear as a pre-roll on the video network. Plus, a WAP site will include clickable Honda Fit banners, which take customers to http://fit.honda.com. That page offers free wallpaper. Honda was also the launch sponsor of The Minisode Network on MySpace and Crackle.com. The Minisode Network now carries 21 series, including "Newsradio," "Married with Children" and an animation block. Launched online in June 2007, the minisodes keep the full story arc of each episode. The Minisode Network registered 1.4 million streams in February, aggregating its viewership from its online and mobile destinations. The Minisode Network was designed as "a new way to bring our library to the digital world," said Eric Berger, vice president, mobile entertainment, SPT, who adds that it has become "hugely popular with users and advertisers." Jenny Howell, manager of interactive marketing at American Honda Motor Co., said the network "leverages the Fit campaign's arresting visuals and unique energetic tonality to capture the attention of an eclectic target." SPT is a 50% owner of cable channel GSN and a partner in FEARnet, the horror/thriller site and VOD service. Sony Pictures Television oversees all of Sony Pictures Entertainment's domestic digital distribution for the Internet, mobile and television.
The Scripps cable networks continued to deliver impressive growth, with ad revenue up 15% in the recently completed first quarter. The increase--helped by a strong scatter market--drove ad revenue for the group (led by Food Network and HGTV) to $236 million. Profit at the group also was up 15% compared to a year ago, to $147 million. The networks will be part of a new company, Scripps Networks Interactive--formed as they and other assets split off from the E.W. Scripps Co. by July 1, leaving two publicly traded entities. E.W. Scripps will include newspapers and local TV stations. In the first quarter, the newspaper group--which includes the Rocky Mountain News in Denver and the main daily in Memphis, took a significant hit, as has much of that industry. First-quarter revenue at Scripps newspapers was down 8.3% year-over-year to $156 million. Newspaper online revenue was $10 million, which was flat relative to 2007. Ad revenue dropped 10% to $120 million. The new E.W. Scripps will try to brand itself as offering local-market solutions to advertisers with its newspapers and 10 TV stations, but results for the papers in that vein were inauspicious. Local ads were down 8.4%, and classified was down 19% (national ads fell 10%). The station group--which includes six ABC and three NBC affiliates--fared better, with political advertising helping to keep revenue about flat at $76 million. Profit was down 13% to $14.2 million. "At our newspapers and TV stations, first-quarter segment results reflect the continued weakness in local advertising that has affected the entire industry," said CEO Ken Lowe. Overall, the Scripps company saw first-quarter revenue increase 6.8% to $642 million.
Men's Health is set to introduce advertising that can be "read" by the cameras on many mobile devices, allowing the reader to take a picture, send it to the publisher, and receive more information or take advantage of a promotional offer. The ad is processed by an image-recognition computer program created by SnapTell. The promotional information tailored to the specific ad is then immediately sent to the consumer. Men's Health will feature the first mobile-readable ads in its July-August summer issue, scheduled to hit newsstands June 24. The ads will also include SMS short codes for readers whose mobile devices don't have cameras. In addition to offering readers product samples, discounts, sweepstakes and free photo and video content, the program also allows advertisers to measure ROI with direct-response style metrics. Better yet, advertisers don't have to pay fees for sending the mobile message responses. The new service is launching with participating advertisers including Axe, Samsung, Westin, and PowerAde. Rodale is not the only company experimenting with mobile-readable advertising. Google's Print Ads platform has also introduced mobile-readable bar codes in print ads, hoping to bring the same precise measurement of ROI to print that it popularized online. Essence Goes Multi-Platform Time Inc. is teaming up with Warner Bros. Television to create a multi-platform presence for Essence, beginning with a relaunch of Essence.com, followed by new television and online content. Included will be more fresh daily content online, a social network and additional video. The brand, targeting African-American women ages 18-49, will bow a new online video series called "Extra on Essence," co-produced with WBTVG's Telepictures Productions. The short-form online video will offer advertisers opportunities for brand integration. ForbesLife Plans MountainTime for Rockies Forbes is set to launch yet another lifestyle magazine. This time, it's also venturing into newspaper distribution. On July 4, the company is targeting affluent residents of the Rocky Mountain region--including its many skiers--with a new publication called ForbesLife MountainTime. The magazine, to be distributed by over a dozen regional newspapers, will cover home design, sports and outdoor activities, events and regional celebrities. Forbes plans a print schedule of 20 issues per year. Forbes has tapped Don Welsh, founder of Budget Living and Budget Travel, as publisher. Philip Armour, previously of Outside, will serve as editor. Financial Times Plans China MagazineThe Financial Times is planning an upscale glossy to serve China's burgeoning upper crust, Reuters reported this week. FT has settled on a title, Rui, which means "intelligence" in Chinese; however, FT said it's still considering the possibilities. With these plans, the London newspaper becomes one of many Western publishers trying to break into the Chinese market. In 2006, Better Homes and Gardens launched a Chinese edition targeting the country's rapidly growing middle class with culturally appropriate décor and homemaking advice. And Global Sources launched a Chinese edition of Elegant Living magazine, as well as an accompanying Web site. After a controversial launch that brought scrutiny by government censors, Rolling Stone's China edition later folded in April 2007, after financial difficulties.