In its battle to break Donovan Data Systems' stranglehold on Madison Avenue's media processing systems, challenger MediaBank has quietly racked up wins totaling more than $1 billion in media billings, including all the advertising buys for cable programming giant Turner Broadcasting System, and a portion of General Motors' media account. The momentum comes as MediaBank has been struggling to gain a foothold inside another major agency holding company, most of which have long-term contracts with DDS, and as its biggest supporter, Publicis' Starcom MediaVest Group, effectively remains under a gag order stemming from a protracted arbitration process tied to its support of MediaBank and its decision to drop DDS more than a year ago. It also comes as other major agency holding companies are believed to be reviewing the terms of their contracts with DDS following an 11th-hour decision by Interpublic's Mediabrands division to stick with that incumbent for a major portion of its U.S. media processing. That makes MediaBank's win of part of General Motors' media buying business especially interesting, because the assignment did no come in through SMG's GM Planworks unit, which remains under a separate, long-term agreement with DDS, but through the Martin Retail Group, which is affiliated with Publicis, according to executives familiar with the shift. Martin Retail Group is not affiliated with Interpublic's Martin Agency, which in December announced that former GM Mediaworks and GM Cyberworks chief Linda Thomas Brooks had joined as president of its in-house media group, Ingenuity Media. In November, after a protracted review of its media data processing services that came down to DDS, MediaBank and Strata Marketing, Interpublic's Mediabrands had been preparing an announcement that it was moving to MediaBank, but at the last minute said it was sticking with DDS. The last minute switch raised suspicions that DDS may have significantly reduced the rates its charges Interpublic to retain its business, a move that would have triggered so-called "favored nation" clauses in the contracts of other big agency holding companies such as WPP, Omnicom, and even Publicis, which continues to do business with DDS in other parts of its organization. MediaBank, meanwhile, has been chipping away at smaller, but sizeable media services accounts, including Turner Broadcasting System's in-house advertising and media department, which purchases hundreds of millions of dollars annually in paid media buys. MediaBank also has picked up some fairly sizeable independent media services agencies, including Cincinnati-based Empower MediaMarketing, and Dallas-based Southwest Media Group. MediaBank has made some other important industry inroads, as well, including integration with other crucial industry sources. In November, MediaBank struck an important agreement with the American Association of Advertising Agencies and the Association of National Advertisers, enabling it to integrate its technology platforms with Ad-ID, a joint venture of the AAAA and ANA enabling advertisers, agencies and the media to digitally code all media buys and advertising related assets. MediaBank said its full "product suite" would integrate with Ad-ID, allowing advertisers and agencies to more effectively manage metadata and measure performance throughout any media campaign lifecycle. On Tuesday, it announced a similar integration deal with Google TV Ads (see related story in today's edition). Asked if it's iDesk system also was integrated with Google TV Ads, a DDS spokesman said the company had no comment. Editor's note: This story has been updated from an earlier edition that incorrectly attributed the General Motors account to Interpublic's Martin Agency instead of the Martin Retail Group.
MediaBank, the rebel software system upstart for media planners and buyers, has struck a major deal to integrate its systems with Google's growing TV Ad platform--a radical media-buying system in its own right. "Our integration with Google TV Ads not only advances the adoption of its digital platform, but improves the ability to analyze programs, which is more important than ever," Brad Keywell, co-founder of MediaBank, said in a release. "As advertisers increasingly demand more precise metrics, this integration will help MediaBank clients make better business decisions." MediaBank, which has a deal with major media buyer Starcom MediaVest Group and other media-buying agencies, has emerged as the central challenger to the dominance of long-time industry stalwart Donovan Data Systems. The industry is pegged to bring in some $200 million in deals. Google TV Ads already sells ad inventory for a number of TV networks and distributors: NBC Universal cable networks, Dish Network, Hallmark Channel, Bloomberg Television and others. In many of these deals, Google sells remnant or other hard-to-sell TV commercials. Because of its deal with Dish, Google TV Ads can report second-by-second data from millions of set-top-boxes. Through Google, advertisers buy ads through an auction-based price system and pay only for impressions delivered by their ads. A report is generated from Google to determine how many people the ad reached within 24 hours of airing. Advertisers using Google TV Ads launch their buys directly from their Google Ad Words accounts. They can target campaigns by markets, networks, dayparts, specific programs, and even program content, such as "fashion" or "health." MediaBank says its open design works for advertisers' growing, ever-changing needs. In a release, Gordon Cohen, senior vice president of technology of MediaBank, said: "We've positioned ourselves for the future as the only system in the industry that allows for seamless integration of multiple data sources through an open architecture." MediaBank's systems can handle a complete ad-buying process for print, radio, TV and digital. The company processes transactions valued at more than $20 billion annually.
Echoing comments by Procter & Gamble's top executive, the CEO of chocolate maker Hershey Co. said lower ad pricing offers an opportunity to get more for less--and his company intends to take advantage of it. The company also plans to boost spending by as much as 25% to further capitalize. Hershey CEO David West said that it became "a little bit more efficient to buy media in the latter part of 2008 and into '09 ... the GRP increase is much, much higher than the actual increase in the rate of the advertising." Hershey spent some $161 million in advertising in 2008, a figure that would cross the $200 million line if the announced 20% to 25% projected increase this year materializes. That would come on top of a 26% jump in 2008. A portion of Hershey's spending bump looks to go toward extending a branding campaign that began in mid-'08. Some monies are just now being deployed to give a lift to the flagging Kisses brand. (West said a decline there is "not acceptable.") "We're also looking at adding GRPs on Twizzlers and a few other places," West told analysts on a call to discuss recent company results. Hershey rode, in part, a 23% increase in spending in the recently completed fourth quarter to a net sales jump of 2.6% (to $1.4 billion), the company said. Last month, P&G CEO A.G. Lafley said there is "an opportunity for us to buy more media at a lower cost, and to increase our brands' share of voice relative to competitors." Like Hershey, P&G is expected to increase spending. West said Hershey would look for a 2% to 3% sales growth in 2009. The company could benefit from a yearning for comfort food in the midst of the recession. Hershey, which broke outside its traditional media arena with a "Project Runway" integration last year, lays out detailed guidelines for the places it will not advertise. Included are shows and publications that offer "graphic and unnecessary violence" and "sensationalism involving delicate and controversial social subjects."
NBC has sold a number of remaining Super Bowl spots at less than its initial $3 million for a 30-second commercial price tag. As anticipated, the network has had a tough time selling much of its pre-game inventory. In a call to journalists on Tuesday, Dick Ebersol, chairman of NBC Universal Sports and Olympics, said the saving grace for the network was that the bulk of its Super Bowl inventory was sold before the economy began to tank. The Pittsburgh Steelers play the Arizona Cardinals Sunday, Feb. 1. As of Tuesday, NBC had just four of 67 spots left to sell. Many of its recent deals were in the high $2 million range, said Ebersol--a bit off NBC's initial asking price of $3 million. Last year, when Fox had the Super Bowl, that network moved faster than NBC. Overall, it virtually sold out by Thanksgiving. It is believed that Fox averaged $2.7 million for each of its 30-second commercial units. Still, NBC seems poised to pull in $200 million for the game itself, which would be a bit more than Fox grabbed in 2008. But overall, NBC might be down for the day--or even with Fox--as pre-game advertising sales are poised to be sold at a discount. One recent in-game spot that was secured went to the NBC Universal/ News Corp. video site Hulu.com. But because the site is co-owned by NBC, it isn't known whether Hulu is paying for the Super Bowl commercial. Early in the sales process, NBC was hit with some pullbacks from long-time Super Bowl advertisers, such as General Motors and FedEx, which declined to buy into the game this year. But others stepped in, such as foreign carmaker Hyundai Motor North America, and two first-time buyers: restaurant chain Denny's and pet-food manufacturer, Pedigree.
Another top Madison Avenue researcher is moving on. Bruce Goerlich is out as the head of research at Publicis' ZenithOptimedia Group, MediaDailyNews has learned. His departure coincides with a restructuring of the agency's strategic resources and an "increased focus on ROI." ZenithOptimedia, which is known as the "ROI agency," Goerlich is being succeeded by Tom Love, presently head of strategic resources - West Coast, who becomes executive vice president-strategic resources, North America reporting to Tim Jones, CEO ZenithOptimedia, North America. The Strategic Resources unit manages and provides insights into all media research, syndicated and proprietary, consumer research, future media and technology trends, data management and investment modeling via its specialist company: Ninah. "Bruce has made an outstanding contribution to the company over the last five years," Jones said in a statement announcing Goerlich's departure. " In particular, playing a key role in the development and application of proprietary tools in building our integrated communications planning practice and ROI capability to where it is today. He has also been an excellent and popular manager and an effective member of our executive management group here in the US. We wish Bruce all success for the future. In Tom Love, Bruce has groomed a very strong and worthy successor. Tom has a rich background working on both the client and agency side where he developed expertise in consumer research, data reporting and modeling. This skill set reflects our strategic focus for consumer based research aligned to our clients' brands, data management and for the continuing development of our ROI proposition going forward." Prior to ZenithOptimedia, Goerlich held top media research posts at MediaVest and its predecessor agency, the media department of Benton & Bowles. Goerlich was not available for comment.
Burdened by what some investors believe is a prominent asset with a questionable future and more broadly, the overall malaise in the ad market, station group Young Broadcasting has been delisted from the NASDAQ. The move ends a months-long struggle as Young's share price has dropped to the 3 cents range, and the company engaged in negotiations with NASDAQ committees. Young has now shifted trading to an over-the-counter market--where requirements to maintain listing are considerably lower--and began trading there Tuesday. It was an inauspicious start, as the share price dropped an additional 33%. Young is not the only station group to have received notices from NASDAQ and the New York Stock Exchange about possible delisting. The list also includes Gray Television, Entravision and Lin TV. Both have failed to meet financial requirements, such as continued trading of a share price of $1 or above, or maintaining market cap floors--although the delisting process is a lengthy one. Investors have soured on Young's inability to sell KRON, its MyNetworkTV affiliate in San Francisco. Its portfolio also includes ABC affiliates in Nashville, Tenn., and Albany, N.Y. NASDAQ first notified Young that a delisting was possible in February 2008. The company does not intend to appeal the NASDAQ hearing panel's determination.
In the hyper-targeted media world, the sweet spot is often local. To tap that potential, NBC Local Media has launched Neighborhood News Pages, available in nine O&O markets, including seven in the top 10. The sites, which aggregate news from NBC's local TV affiliates as well as the Web, then organize the information by neighborhood. Topics covered include news, sports, health, around town, weather and traffic. The local markets represented are: WNBC New York, KNBC Los Angeles, WMAQ Chicago, WCAU Philadelphia, KNTV San Francisco, KXAS Dallas-Ft. Worth, WRC Washington, D.C., KNDS San Diego and KTIS Hartford. The news pages were built and launched by Outside.in, a data and technology platform that creates and distributes hyperlocal news. "Our new Locals Only sites enable our users to be true insiders and to fulfill on that promise we need to deepen our coverage in local communities," says Brian Buchwald, senior vice president, local integrated media for NBC. He notes that the NNP allows the network to "add entirely new sections of content to our sites and create more targeted ad impressions at a fraction of the cost." "Publishers can use our Neighborhood News Pages to create thousands of discrete, highly targeted local news pages to complement their national and regional coverage," adds Mark Josephson, CEO of Outside.in. "Outside.in covers all local blogs, mainstream media and twitter streams. If it's about local, we've got it." Both national and local ads appear on Neighborhood News Pages. The owned-and-operated sales team sells ads for the sites, in addition to NBC's national sales team.
Verizon continued its steady challenge to cable operators, announcing that it now serves 1.9 million TV customers via its FiOS service. It's on pace to have as many subscribers as a top-five MSO by the end of this year. FiOS added 303,000 customers in the October-December period to reach the nearly 2 million mark. If similar progress continues this year, it could finish with some 3 million subscribers--enough to pass Cablevision and all but four cable operators. Some 21% of potential FiOS customers--the brand covers an Internet service by the same name--that can sign up for FiOS TV have done so. Its 1.9 million homes is out of an available base of 9.2 million. FiOS gained nearly 1 million subscribers in 2008, in a year where it launched the service in parts of New York City, prime Time Warner Cable and Cablevision turf. FiOS TV allows Verizon to sell TV/phone/ Internet triple-play packages, which cable companies have been pushing for some time. "FiOS remains at the center of our consumer strategy as our broadband and video services continue to drive consumer revenue growth," CFO Doreen Toben said on a call with investors.
SeeSaw Networks announced that eight new members have joined its portfolio of place-based digital networks, giving advertisers access to an additional 3.5 impressions per week, via a total of 700 venues. Through a total of 40 affiliated digital networks, SeeSaw can now deliver about 50 million impressions weekly via 26,000 locations. The newcomers are concentrated in retail venues, which include convenience stores, grocery stores, gas stations, etc., including: the BuzzHub Network, the TV Kart Network operated by Cabco; the Digital Promo Network; InStore Vision; QuickStore24 At Work Media Network, RDS Media, which serves wine and liquor stores; and World Narrowcasting Corp. Checkout and WNC Aisles, which both serve grocery stores. TV Kart is a particularly interesting addition to the SeeSaw stable, delivering messages to digital displays on shopping carts installed and operated by Cabco Group. The carts were developed by the New Zealand-based company to entertain children during the shopping experience. In addition to screens displaying content from sources like Nick Jr. and Hit Entertainment, the carts are modified with colorful plastic molding that makes them look like make-believe vehicles. Separate screens deliver advertising messages to shopping adults. Separately, in October Cabco struck a deal with Premier Retail Networks to bring the carts to some of PRN's supermarket clients. The carts complement an array of in-store media controlled by PRN, including other place-based video screens and radio. SeeSaw has been expanding aggressively in recent months. This week's partnerships come soon after the company's December addition of three new video networks reaching commuters, business professionals and tourists in New York's various transit systems. Altogether, the three networks cover more than 1,000 locations through the city, including taxis and high-traffic transit infrastructure. Showcase Media Group gives SeeSaw's advertising clients access to interactive digital screens in the back seats of taxis. Affinity Ferry Network operates digital video displays in two ferry terminals. City 24/7 is installing 26-inch digital video touchscreen displays in disused phone booths, along with Verizon and landmark property owners, to deliver safety and consumer info.
James Brady, who wrote the "In Step With" column for Parade for almost a quarter century, died Monday. A renowned reporter and Korean War hero, Brady was also a veteran of the ad industry. He jumped from copy writing for Macy's to business news reporter for Women's Wear Daily. Brady learned about women's fashion from Coco Chanel while working in Paris, then returned to become publisher of Women's Wear Daily in 1964. There he helped launch its spinoff, W, before being hired by Hearst as vice president, editor, and publisher of Harper's Bazaar. After clashing with the old guard there, he worked for New York, writing "The Intelligencer" column and creating a talk-show spinoff for the magazine. He also edited News Corp.'s Star, served as associate publisher of the New York Post, where he created the "Page Six" gossip sheet, and did live celebrity TV interviews for New York's WCBS-TV News. In the 1990s, he hosted "Power Lunch for CNBC," authored a series of comedic novels, and also wrote several memoirs of the Korean War. He also wrote media columns for Ad Age, Crain's and most recently Forbes.com. He is survived by his wife, Florence, two daughters, Fiona Brady and Susan Konig, one brother, four grandchildren, Sarah, Joseph, Nicholas and Matthew, and his brother Monsignor Tom Brady.
ICOM, a global network of independent ad and marketing agencies, has elected Rino Ferrari president and seven other members to the board of directors for 2009. Two members are elected to represent each of four geographic regions: Asia-Pacific, EMEA, Latin America and North America. Ferrari, president of Rino Publicidade, São Paulo, was re-elected to a second year-long term as president and ICOM regional director for Latin America. New board member Mike Diccicco, Diccicco Battista Communications, Philadelphia, joins as an at-large director for North America. This year's directors come from Taiwan, Thailand, Denmark, France, Brazil, El Salvador and the U.S. Others who have been reelected to serve include regional director for Asia/Pacific George Romanyk, creative in-house, Bangkok; director-at-large for Asia/Pacific Cindy Chang, United Communications Group, Taipei; EMEA regional director Patrick Walhain, Dassas Group, Paris; EMEA director-at-large Uffe Just, Just/Kidde, Copenhagen; Latin America director-at-large Juan Carlos Sandoval, Publinter, San Salvador; and North America regional director Bob Morrison, The Morrison Agency, Atlanta. ICOM agencies are owned locally and work globally; the organization has billings of $2 billion.
Consumers are scared, confused and uncertain. During these harsh economic times, the immediate reaction for many brands is to cut advertising spend and to communicate less. I like to use the analogy of a marriage in crisis. Everyone knows that the trick to a successful marriage is communication. In times of crisis, communication becomes even more crucial. It is the same thing for brands. In times of crisis, it is totally counter-intuitive to stop talking. When things are going wrong, increasing communications and opening up a good dialogue become even more important. As the economic downturn persists, consumers will continue to rationalize their needs and their expenditure on goods and services. They will look more to altruism and social justice as they strive to find more meaningful and fulfilled lives. Brands that do not communicate around these more humane and philanthropic principles may suffer. Recession has a different meaning for different people: not all consumers are equal in recessionary periods. They all have the same understanding of the situation, but what's a big problem for some groups, could be an opportunity for others. An in-depth understanding of customer behavior is key to finding opportunities in this environment. It is crucial for brands to invest in consumer understanding and analytics. Alfonso Rodés is CEO of Havas Media. This commentary was excerpted from comments he made Tuesday to government and business leaders at The Emerging Markets Investors Roundtable in Zurich, Switzerland.
It's sad to see the National Association of Television Program Executives' annual conference reduced to fretting about its relevance. TV Week says NATPE, going on this week in Las Vegas, has to decide what it wants to be because apparently it's not "useful" anymore. Mediaweek says the event's "in flux" because the syndication business is in the toilet. Thing is, NATPE was never useful to anybody as a serious source of industry insight. What made it worth going to was its role as a glorified bazaar hawking talk shows hosted by D-listers and direct-to-DVD-quality adventure series instead of Iranian rugs. But what a great glorified bazaar. Not only that, NATPE treated journalists like the whores we are. I didn't see much over-the-top revelry, which is regrettable. (Although I did black out for a couple days one year. I don't remember why, but Wayne Friedman was involved.) Still, what NATPE lacked in table dancing and gutter diving, it more than made up for in swag--which was magnificent. I got action figures. I got autographs. I met Adam West, who I think was drunk. There was free food. Free pens. Free T-shirts. Free key chains. There were telephones shaped like the castle at Disneyland. Discovery Channel pith helmets. A "Seinfeld" tote bag. It was epic. My favorite NATPE spoil was a framed, autographed photo of Lucy Lawless as Xena. She signed it for my kid: "My darling Alex," she wrote. I stood next to her while she did it, grinning like an idiot because I was at eye level with her warrior princess breasts. That's as close as I'm ever going to get to Heaven. I think NATPE is an appropriate stand-in for the TV industry in general these days. No longer the hippest guy in the room, it faces monumental, many would say existential challenges. No more time for frivolity or superficiality. Television is at death's door. What crap. Television -- broadcast, cable, syndicated -- are not newspapers or record companies. Those things really are dying, mostly because they're run by pencil dicks. TV is run by assholes, sure, but they're smart assholes. They've seen the bloodshed the digital hordes unleashed on the music and print industries, and they're determined not to share the same fate. The lords of television accept that digital is king, and they've done a good job of acting on that knowledge. No, they can't make money on Internet television yet, whether streaming shows or producing Web-exclusive content. But they've made some good moves -- and they'll figure it out sooner or later. It's clear that people really like watching television on their computers, so the future is far from bleak. I know, I know, the business model, for the networks, at least, is FUBAR. But they know that, too, and have shown themselves more than willing to tinker until they get a new one that makes sense. So I say NATPE should stop trying to be useful and go back to misbehaving like mad, selling televised swill and showering journalists with swag until they gag. And the rest of television should do the same. Because if there's a nuclear war, the only things that will survive are cockroaches and the upfront.