Piling on criticism over a major change in local TV ratings measurement, the 4A's Media Policy Committee has penned a strongly worded letter to The Nielsen Company. The letter that Marc Goldstein -- president and CEO of GroupM North America and Chair of the American Association of Advertising Agencies' media policy committee -- sent to Nielsen echoed major media agency executives' fury over the media ratings service's decision to eliminate live-only ratings in major local TV markets. "Your total disregard for the expressed concerns of local broadcast media buyers, coupled with your adamant refusal to recognize our point of view is totally unacceptable," writes Goldstein in a letter sent on Wednesday to Susan Whiting, vice chair of The Nielsen Company. "Rather than maintain Nielsen's traditional role as an "honest broker" of data and information, you have instead chosen to insert yourselves in the buy/sell process and in so doing, you have sacrificed your credibility." GroupM executives have already expressed major problems with eliminating the live-only ratings data with live-plus-same-day ratings -- the biggest is that it could instantly increase local TV ratings by 13%. ("Stay of Execution: GroupM May Appeal Local TV's 'Live-Only' Death Sentence", MediaDailyNews, Nov. 12). GroupM says it has long-term contracts with TV stations that would be affected. GroupM represents about one-third of all local TV media dollars for U.S. TV stations. The new system is supposed to go into effect in January. To many executives, the move will be an immediate boon to struggling TV stations that have seen local TV ad revenue plummeting some 30% to 40% over the past year. More recently, others have joined the chorus against Nielsen, such as John Muszynski, chief investment officer of SMGX, part of Publicis Groupe's Starcom MediaVest Group. Starcom also represents a hefty chunk of overall local TV advertising spending. Nielsen's response: it reviewed the possible changeover beforehand with all its clients -- TV sellers and buyers alike. But recently, it has come to light that the TV stations' main advertising lobbying group -- the Television Bureau of Advertising -- may have had a major part in pushing for the switch. ("Agencies in Arms Over Nielsen Local Ratings Move: Call TVB's High-Five A Low-Blow," MediaDailyNews, Nov. 13). Media agencies are not opposed to adding the live-plus-same-day stream -- just not eliminating the live-only stream. Nielsen says TV stations have capacity issues in handling additional TV audience data. Rino Scanzoni, chief investment officer at GroupM, previously told MediaDailyNews that the media agency group has been discussing possible legal action against Nielsen.
Coca-Cola's top stateside marketing executive delivered some auspicious words for Univision and BET this week, saying targeting "multicultural" Americans will be paramount for the company over the next decade. So-called general market networks may also take heart: Coke's efforts to reach moms -- household decision makers -- will continue to include a heavy dose of national TV, even as the marketer diversifies into other media. In 2008, Coke's U.S. ad spending totaled $752 million, per Ad Age. Speaking at a company investor event, North America CMO Katie Bayne said "multicultural consumers are our core focus" as Coke looks toward 2020. The "multicultural" segment accounts for 33% of North American sales across all brands today -- with the figure expected to reach 40% in 10 years. In addition, 51% of American teens today are "multicultural," auguring new opportunities, Bayne said. Bayne said Coke no longer cooks up media plans targeting Hispanics around major events, but hopes to reach them all year. "It is no longer the Hispanic Heritage Month followed by Cinco de Mayo," she said. "We have 12 months of deep connection." Next year, those efforts include World Cup-related promotions targeting Hispanic males and telenovelas for females. Powerade is one brand with resonance among the demo Coke will emphasize. Marketing programs -- particularly on college campuses and backing Sprite -- aimed at African-Americans are also an emphasis point. The company, which ran a memorable spot in the Super Bowl several years ago, said it was the first time there were two African-American coaches. It may look to extend promotions behind Black History Month into an extended effort that could reach three months. Among moms, Bayne said TV will continue to be a linchpin of all efforts. "Television's very important," she said. "Of all the mediums -- yes, she swaps information digitally -- but she spends 4 hours and 14 minutes every day with the TV on." A focus in 2010 aimed at moms will be around the new Coke "Mini" can, which launches nationwide in the first quarter. Out-of-home and digital will be critical in the "Mini" debut -- with a digital effort carrying a "90-calorie portion control can -- for the Goldilocks in all of us" tagline. Also early next year, Coke's Olympic campaign will feature athletes including speed-skater Apolo Anton Ohno and snowboarder Gretchen Bleiler. A global TV spot features a snowball fight in the Olympic Village, started by the Swedish team lobbing a projectile at the Canadians. Throughout what becomes a joyous event, a Canadian struggles to get to a Coke machine for refreshment. Bayne also said the company is taking advantage of the out-of-home's industry's emphasis on digital billboards, where messages can be adjusted on the fly from a central command. A "Coke Digital Network" is using six billboards along freeways and looking toward expansion to other markets. "No more shipping vinyl," Bayne said. "But literally pressing a button and getting the right message depending on traffic flow, who's going by, and what's going on." She suggested Coke could soon tout the winning score of a local football team hours after a big victory -- while plugging Coke's link with the NFL. Before Bayne spoke, Coke's top worldwide marketing executive Joe Tripodi said the company continues to wring savings in marketing. Its agency roster has gone from 82 to 35 -- saving $200 million, which it will invest behind brands worldwide.
Touch that NFL programming on your TiVo remote -- in any way -- and Coors Light will send you commercial messaging. In an unusual deal that will start this week, extending for the season right through all Super Bowl programming, Coors Light -- a MillerCoors beer brand -- will execute multiple messaging and content when consumers interact with NFL programming. For instance, any time a fan pauses or deletes NFL programming, they will see a Coors Light-branded prompt inviting them to visit the Coors Light NFL Showcase Page. Plus, during rewinding or fast-forwarding of programs, a Coors Light prompt will appear on TiVo Central or the TiVo Showcase Grid. A prompt will also appear during any fast-forwarding of Coors Light ads. While watching an NFL program and/or game, they will be prompted to go to the Coors Light NFL Showcase, where special content can be accessed. It includes behind-the-scenes footage from the Coors Light "Coaches" ads, consumer-generated versions of the TV spots and details on how to win Super Bowl tickets and other prizes as part of the Coors Light "Countdown to 44" promotion. Tara Maitra, vice president and general manager of content services and advertising sales at TiVo Inc., stated: "As TV viewing habits evolve, even sporting events, which are typically watched live, are becoming more prone to time-shifting and, as a result, are experiencing increased levels of commercial avoidance."
DirecTV has tapped the retiring head of PepsiCo.'s international operations as its new CEO. Michael White, also a vice chairman at the beverage company, will take over Jan. 1. He replaces Chase Carey, who joined News Corp. White said in September he would step down at Pepsi. He joins DirecTV's board with his new post. He has been with Pepsi for nearly 20 years, starting in planning at Frito-Lay. DirecTV board chairman John Malone states that White has "a sustained track record of success, profitably growing businesses and a reputation for making the impossible possible." Carey was considered a successful chief, helping expand DirecTV's customer base to more than 18 million in the U.S. and maintain its deal to offer the NFL Sunday Ticket exclusively. Larry Hunter has been interim CEO since Carey departed for the No. 2 post at News. In midday trading, DirecTV shares were trading up close to 1% in the $31 range.
While retailers are hoping that shoppers will begin returning to stores as the economy improves, mall media networks are hoping to attract more ad dollars with a raft of new research demonstrating their effectiveness. The recent wave of positive data includes custom studies by Nielsen and Arbitron for mall media networks AdSpace, Akoo and EyeCorp. AdSpace published the findings of a custom study by Nielsen Media Research showing that the proportion of mall shoppers who noticed AdSpace's Smart Screen displays increased from 47% in 2007 to 65% this year. AdSpace, which operates large flat-screen displays in malls with about 100 million visitors per month, attributed the increase to more engaging editorial content based on consumer research and the switch to HD content, which generally delivers more vivid, eye-catching colors. The Nielsen study, which conformed with the measurement guidelines formulated by the Out-of-home Video Advertising Bureau, also found increasing awareness of commercials on the AdSpace network. The number of visitors who noticed advertising from clients like Sony Pictures and Estee Lauder increased 44% in 2009 compared to 2007. As noted, the AdSpace study is just the latest in a spate of new research initiatives from mall media. Akoo, which operates a DO music video-on-demand network reaching malls and college campuses, recently announced a new measurement deal with Arbitron for audience estimates. Another major mall ad network, Eye Corp., recently completed a shopper profile study with Arbitron, which revealed that 66% of shoppers noticed Eye Corp.'s displays. Eye Corp. is combining this proprietary data with subscriptions to syndicated category and audience data sets and single-source information for advertisers.
Publicis CEO Maurice Levy has taken to a tongue-in-cheek approach when asked about client procurement officers trying to drive down fees. He cracks that rarely has a client called and said: Bonjour, you guys are doing a heckuva job -- we want to increase what we owe you. Maybe two or three times it's happened in Levy's 40-year career. "Probably it was because they smoked something wrong," he quipped Wednesday. At a Morgan Stanley event, Levy said that "the happiest clients have always cut fees" and he expects that to intensify and become "a little bit fiercer." "There is a huge pressure on procurement," he said. "I have seen a few heads of procurement in 2009. And they've said it is not a job anymore. It's a mission. I am on a mission. I need to cut by X,Y,Z percent ... we are facing serious difficulties." But Levy said the digital revolution offers a silver lining for the Paris-based owner of Digitas and Razorfish. Digital marketing provides some pinpoint metrics, and if agencies can prove effectiveness, they can be rewarded. "There is a huge change in digital -- the fact that we can measure almost everything," Levy said. "What will happen in the future -- which could be very good news for people like us -- is that we may come to a solution where we will be paid not on service, but on value and on deliverables. And deliverables which are measurable ... which will be highly, highly positive for us." Some "sophisticated" clients, he said, are moving in that direction. Still, Levy said IPG won some General Motors business that Digitas handled by offering a price "hugely below" what Publicis put forward -- a figure that would not have allowed Digitas to break even. On Razorfish, a digital agency that Publicis bought for $530 million from Microsoft, Levy said it is profitable at a 6% to 8% margin, which he views as "relatively poor," although the business is "very, very healthy." He said the agency has a different dynamic than Digitas, with more focus on technology than creative. Levy said there will be some combination between the two with sharing of tools and practices, but the brands will remain separate.
Consumers may be willing to pay for online content, but they won't pay much, according to a new study from the Boston Consulting Group, which conducted a global survey of 5,000 respondents in America, Europe and Australia. While attitudes varied between the nine countries surveyed, BCG found that Americans, on average, were more receptive to the idea of paying for online content -- but the cheapest in terms of how much. BCG's survey data showed that on average, two-thirds -- 67% -- of global consumers are willing to pay for unique content, with 63% saying they would pay for specialized coverage. For U.S. respondents, these figures were 72% and 73%, respectively. Sixty-one percent of U.S. respondents said they are interested in continuously delivered, timely information, compared to 54% for the survey respondents as a whole. The BCG study included some good news for newspapers, which led the pack in terms of online payment potential. More respondents around the world said they would pay for content from newspaper Web sites than other media (e.g., T.V. news) with an online presence. However, this positive finding is tempered by the fact that consumers are not willing to pay much for online content, whatever its origin. The amount of money they would be willing to shell out ranges from $7 among Italians, down to $3 among Americans -- who were, overall, the most tightfisted of the groups surveyed. The BCG study provides an interesting counterpoint to other recent studies addressing this issue. In October, a survey of 2,404 American adults by Ipsos Mendelsohn and PHD found that 55.5% of respondents said they would be very unlikely to pay for online content from newspaper or magazine publishers, versus 16.5% who said they might pay, including a number of fence-sitters. There are a variety of different approaches to charging for online content; some might work even if only a small percentage of online readers agree to pay. One of the most-discussed proposals for a micropayment system comes from Journalism Online, founded by Steven Brill, which has assembled a consortium of newspaper publishers with the goal of designing and implementing a flexible micropayment scheme that could be used across multiple sites. Responding to skeptics who argued that most people won't pay for online content, Brill has said that Journalism Online's model would only require 10% of visitors to pay for certain selected premium content, with the other 90% still able to view regular content for free.
AirTran Airways said it has begun offering seat-back advertising on its jets, with plans to extend the opportunity to its full fleet of 138. Online site Mother Nature Network is the charter advertiser with a full-color execution plugging a sweepstakes to win a Royal Caribbean cruise. The dimensions of the ads are 2 and a half by 9 inches. OnBoard Media Group developed the system used by more than 10 airlines globally; AirTran is the first domestic carrier. Tad Hutcheson, AirTran's vice president of marketing and sales, states: "We have gone to great lengths to present these advertisements in a tasteful, unobtrusive way that we believe customers will enjoy." AirTran is looking for incremental revenue from the new medium, which joins its in-flight magazine, advertising on napkins and announcements by flight attendants as on-board marketing openings. Mother Nature Network, which offers environmental news and green commentary, launched earlier this year with Rolling Stones musician Chuck Leavell as a founder. "The fact that AirTran offers Wi-Fi on every flight, combined with this new and innovative advertising platform, convinced us this was a perfect marketing opportunity for an online brand like ours," states Joel Babbit, CEO of MNN.
Deep into the November sweeps, competitive battles are having their effect on all network TV shows, old and new. The new -- CW's "Melrose Place," now with the highly marketed return of Heather Locklear -- did a bit better than recent editions, but probably not quite the bump the network wanted. Among 18-49 viewers, the show rose one-tenth of a rating point to a Nielsen 0.8 rating/2 share. But the series' numbers for women 18-34 climbed to a 1.1 rating, its best in weeks. ABC's "V" -- another new show this season, airing at 8 p.m. -- went further south. Now in its third week, it fell from the high 5.0 rating of its debut to a still-healthy 3.1 rating/8 share. The struggle remains for ABC's 10 p.m. show "the forgotten," which was flat at a 1.9 rating/6 share among 18-49 viewers, compared to a week ago. The silver lining in this time period for NBC is "The Jay Leno Show," which again beat the ABC scripted show with an above-season average 2.0 rating/6 share score. The bigger-rated shows on Tuesday all took it on the chin. CBS' two leaders were down: "NCIS" dropped 7% versus last week to a 4.1/ 11, a season low; and CBS' "NCIS:LA" was off 8% to a 3.4/9, also a series/season low. NBC's "The Biggest Loser" went 3% south to a 3.7/10, while ABC's "Dancing with the Stars" put its feet down 9% to a 3.2/8. Overall, CBS won the night among 18-49 viewers with a 3.4/9. NBC was at a 3.0/8; ABC, a 2.7/7; Fox, a 2.4/7; Univision, a 1.5/4; and the CW at a 0.9/3.
The editors of MEDIA magazine have selected Interpublic's Mediabrands division as the Media Agency Holding Company of the Year, and Havas' MPG unit as the Media Agency of the Year for 2009. Goodby, Silverstein & Partners took top honors among full-service agency media departments for the third year in a row. U.S. International Media was named MEDIA's first ever "Independent of the Year." Publicis' Spark Communications was named Media Boutique of the Year. Hulu was named the Media Supplier of the Year. The awards are based on three primary criteria, including: strategic vision, innovation and industry leadership. MEDIA will publish a special "Agency of the Year" awards supplement in January profiling the winners and detailing their achievements. A gala awards show honoring the recipients will be held in New York, the evening of Jan. 11th.