Media agency veteran Sasha Savic has been named CEO of WPP's MediaCom USA, a new post. Savic will report to MediaCom North America CEO Harvey Goldhersz, who also serves as vice chairman, Worldwide COO of MediaCom Worldwide. Savic joins MediaCom from Havas Media Group, where he was COO, and a vital No. 2 to CEO Maria Luisa Francoli. He was also part of the team that led its MPG unit to winning Media magazine's media agency of the year award for the third consecutive year in 2011. “Ever since I became CEO of MediaCom North America a year ago, I knew I wanted to name a CEO for our U.S. operations,” Goldhersz said in making the announcement. Goldhersz stated:" Sasha is a strategic thinker and innovator with exactly the kind of extensive media agency credentials that MediaCom needs to lead our U.S. operation as we plan for 2012 and beyond.” Savic will officially join the agency and will begin work in early spring. As head of MediaCom USA, Savic will be responsible for the overall product, management and operation of all MediaCom activities in four U.S. cities, overseeing an agency with an estimated 700 employees and $6.4 billion in billings, according to RECMA. He will be based in the agency’s New York office. Savic’s hiring comes amid a turnaround effort by MediaCom, which has had a bumpy couple of years in the business development area. Key client losses over that time include drug marketer GlaxoSmithKline with estimated billings of $1 billion; the Warner Bros. Studio ($800 million) and toymaker Hasbro ($100 million). But in recent months, the shop has won some big accounts, highlighted by its capturing Bayer’s $400 million media assignment in December. Shortly before the Bayer win, Revlon consolidated its $265 million global media assignment with the agency. Earlier, it won Universal Music. Depending on how the decision goes, one potential momentum killer -- or booster -- is global client Shell, which just put its account into review. About 30%, or $75 million of that client’s global ad spend occurs in the U.S. Goldhersz was brought on board about a year ago to get the agency back on track, replacing Doug Checkeris as North American CEO, while retaining his existing global duties at the agency. It was understood at the time that he would be looking for additional top-level talent to aid in that effort. No word on a replacement for Savic at Havas Media. Sources indicate that for now, his direct reports will report to Francoli.
PetSmart, the pet supply retail chain, has awarded its media agency assignment to KSL Media after a formal review. The scope of work is said to include all traditional and digital media planning and buying. The chain spends between $70 million and $80 million on ads annually, according to Nielsen. Previously, Publicis Group’s Starcom serviced the account, after winning the business in 2007, in tandem with sibling creative agency Leo Burnett. The latter parted with the client several years ago, while Starcom continued to handle media duties. Other shops participating in the review process were said to include WPP’s MediaCom, Mindshare, OMD, and Palisades Media Group. Starcom issued a statement, noting: “While we are proud of the work we did to provide them with digitally driven, insight-powered human experience solutions, it was time for our companies to part ways and move forward.” PetSmart, a public company that was founded in 1987, claims to be the largest specialty retailer of pet products and services, with nearly 1,200 pet stores in the U.S. and Canada. In November, the company reported net sales for the first nine months of 2011 of nearly $4.5 billion, up 7% from the same prior year period. Reps for KSL and PetSmart did not return queries seeking comment on the decision.
Fox's "American Idol" starts up its 11th season as TV's still-biggest show -- although down substantially from a year ago. The day after its season debut, the network announced that for the first time, the show would now be available on a video-on-demand time-shifted basis. A number of cable, satellite, and telco operators will be offering each of the show's audition, performance and results on their video on demand services three days after each "Idol" airing on Fox. This includes Armstrong Cable, AT&T's U-verse, Bright House Networks, Cablevision Systems Corp, Cox Communications, Mediacom, Time Warner Cable, Verizon FiOS and Xfinity TV. For its 11th season debut, "Idol" was down 24% to a 7.4 rating/19 share among 18-49 viewers, and 21.9 million overall viewers, according to Nielsen preliminary results. A year ago, at the start of its 10th season, "Idol" was at a 9.8 rating and 26.3 million viewers. Kevin Reilly, president of entertainment for Fox Broadcasting, said at the recent Television Critics Association meeting he expected a drop in "Idol" numbers this season. A year ago, "Idol" was down 4% for its regular schedule Wednesday performance shows to a 8.0 18-49 rating versus 2009. Thursday result shows were down a bit more, 10% to a 6.9 rating. Still, "Idol" gave Fox an easy win on Wednesday night. ABC was well behind in second place, with a 3.0/5 average 18-49 rating on the night. Its best results came with its still high-flying "Modern Family," which dipped a bit to a 5.0/12 at 9 p.m. down from a 5.1 the week before. In the wake of the expected big "Idol" opening, CBS took a back seat with a repeat of its sturdy high-rated drama "NCIS" at 8 p.m. The network's best offering came from "Criminal Minds," which took in a 3.2/8 down from a 3.4 rating for its last original episode in December. For the night, CBS posted a 2.5/6. NBC was well off the pace of the other networks -- a 1.5/4 for its Wednesday night average. Its two new comedies this year, starting at 8 p.m -- "Whitney" and "Are You There, Chelsea" -- suffered 20% of more declines against "Idol," getting a 1.6/5 and a 1.8/4, respectively. CW also lost ground in the 8 p.m. hour from "Idol." "One Tree Hill" dropped over 20% to a 0.7/2 from its season debut numbers a week ago. A reality show repeat of "Remodeled" took in about half of "Tree" results, at 0.3/1.
Lackluster 3DTV sales may be getting an unexpected lift. That's thanks to expected growth of Internet-connected TV shipments, according to U.K.-based Futuresource Consulting. The company forecasts such TVs will comprise 80% of all worldwide TV shipments in three years. Right now, connected TVs shipments are at 27% of all TVs shipped globally. When it comes to 3DTVs, shipments of 16 million units are estimated for 2011, growing to represent 50% of the market in 2015. But there might be an asterisk here. Futuresource says: "One of the key reasons behind the growth of 3DTVs is that consumers are purchasing the 3D function by default when looking to upgrade to higher-end models." The firm notes the public is "unaware of the in-built 3D capability at the time of purchase." Right now, Net-connected TVs have the biggest share of the market in Japan, where they represent 59% of all TV shipments last year. Looking at other big markets -- USA and China -- both are getting 29% share of Internet-connected television sets. Europe receives a 24% share. Even more technology could be coming for TV viewers. Some TV critics say OLED technology provides even better quality TV than current HDTV sets. At present, that technology is mostly available in smartphones and is gradually moving to traditional TV sets -- but the price tag is much higher than HDTVs.
eMarketer Thursday released an updated ad forecast predicting that online would surpass print ad spending this year. "U.S. online advertising spending, which grew 23% to $32.03 billion in 2011, is expected to grow an additional 23.3% to $39.50 billion this year, pushing it ahead of total spending on print newspapers and magazines," the research aggregator and analyst projects in its updated forecast, which projects that ad spending is expected to fall to $33.80 billion in 2012, from $36.00 billion in 2011. "Despite concerns about the troubled economy among agencies and marketers, total ad spending in the U.S. is expected to rebound in 2012 after rising 3.4% to $158.90 billion in 2011," the report also predicts -- noting that total U.S. media ad spending will grow an estimated 6.7% to $169.48 in 2012, boosted by the national elections and summer Olympics in London. While quadrennial-boosted TV ad budgets will rise 6.8% to $64.80 billion this year, eMarketer projects that "digital remains the sole bright spot" for print-based newspaper and magazine publishers. eMarketer estimates U.S. digital newspaper ad revenues grew 8.3% to $3.30 billion in 2011. Print advertising revenues at newspapers fell 9.3% to $20.70 billion in 2011. At magazines, U.S. print ad revenues are expected to rise 0.5% to $15.34 billion in 2012, up from $15.30 billion last year. U.S. digital advertising spending at magazines grew 18.8% to $2.70 billion in 2011.
In the UK, optimism is falling among business executives, since marketing budgets are essentially flat for the year ahead. But traditional media budgets are taking a hit. That’s according to the latest Bellwether Report issued today by the Institute for Practitioners of Advertising. The Bellwether Report is researched and published by Markit Economics on behalf of the IPA. Chris Williamson, Chief Economist at Markit and author of the report, said the flat budget outlook for marketers probably reflects a similar stagnation of the overall economy. "Looking deeper into the data, there are signs that companies have become increasingly reluctant to invest in traditional media campaigns. This reluctance reflects lower-than-expected sales and profits in recent months, as well as growing unease about the economic outlook.” The report indicated that fourth-quarter 2011 budgets were up overall by less than 1% versus the year-ago period. The Q4 budget growth was down sharply from the previous quarter, when increases averaged 3.4% as marketers sought to protect market share, per the report. Business optimism (rated on a scale where average is 0) was the lowest it has been in nearly three years, according to the report -- citing an overall rating of nearly -45%. Optimism was down sharply from Q3, when it hovered around -23%. In addition, executives reported that financial prospects for their own companies had deteriorated for the first time since the first quarter of 2009. While marketing budgets may rise very slightly overall this year, the report concluded that traditional media budgets are being cut “in favor of online, price discounting and more direct marketing strategies.” IPA President Nicola Mendelsohn, who is also executive chairman and partner at ad shop Karmarama, stated that despite the gloomy outlook of the executives surveyed, budgets are holding up for now which "shows that many companies remain committed to invest in marketing at present.” The decline in optimism, Mendelsohn added, is yet another sign of “uncertainty for the year ahead.” The quarterly report surveys 300 UK marketing executives to get a snapshot of the health of the UK economy.
Men's Fitness Gets Site Into ShapeMen’s Fitness is relaunching its Web site, with upgrades including a wider variety of content and a new format. Content on the new site will include fitness and nutrition -- and an increased emphasis on men’s lifestyle content, covering fashion, grooming and sports, among other subjects. The site’s new format provides multiple points of entry for site visitors to its editorial content, while real-time blogs, updated periodically throughout the day, will serve as a public forum open to user contributions and commentary. Other enhancements include a recipe tool as well as social-sharing tools. Separately, Men’s Fitness announced that it has partnered with Extra Gum for its 120-Day Get Fit Giveaway. The online promotion, running through March 29, is hosted on ExtraGum.com and features daily and Grand Prize giveaways of fitness-related products and services. The Grand Prize is an all-expense-paid fitness trip for two to Utah’s Red Mountain Resort. Highlights from the winners’ Grand Prize getaway will appear in a full-page advertorial feature in both magazines. Promotional elements of the sweepstakes will be featured in the magazines as well as on their respective Web sites. The promotional push also includes displays at select Wal-Mart locations and in 5,500 CVS stores, custom header cards at 7,300 Walgreens stores and store circular promotions at Duane Reade and Supervalu/Safeway stores. Playboy Will Close Chicago HQ Playboy Enterprises is abandoning its Chicago headquarters and moving all its offices to Los Angeles, according to the Chicago Tribune, which reported that the venerable purveyor of cheesecake will close up shop in the Windy City by April 30. The move comes a month after Playboy announced its intention to move its editorial and art departments to L.A., and three years after it closed its New York City offices. Hugh Hefner, a Chicago native, founded Playboy in Chicago in 1953. With its decline beginning long before the recent recession, Playboy’s total ad pages gradually dropped from 584 in 2002 to 386 in 2010, before rebounding somewhat to 438 in 2011, according to the Publishers Information Bureau. The Hollywood Reporter to Launch Russian Edition While the Russian entertainment industry may sound like a contradiction in terms to some, it’s getting its own magazine courtesy of The Hollywood Reporter, which announced its intention to launch its first international edition this week. As with its American edition, The Hollywood Reporter: Russian Edition will cover Russian entertainment insiders, trends, celebrities and breaking news. The first issue of the magazines will hit newsstands in Russia in March; an accompanying Web site, www.thehollywoodreporter.ru, is also in the works. Next Issue Media Appoints Keast EVP, Marketing Next Issue Media, the consortium formed by Conde Nast, Hearst, Meredith, News Corp. and Time Inc. to lay the groundwork for a broad transition to digital publishing, announced the appointment of Brodie Keast as executive vice president for marketing. Next Issue CEO Morgan Guenther stated: “Brodie ... understands how Silicon Valley intersects with big media brands, and at a time of tremendous change and excitement in the $25 billion plus magazine industry.” Prior to joining Next Issue Media, Keast served as CMO of Prysm, a privately held company that specializes in new display technologies. Before this, he was senior vice president of marketing for Palm, where he led the launch of the webOS platform. Sharick Named Managing Editor For Time.com Catherine Sharick has been named managing editor of Time.com. Editor Rick Stengel noted that Sharick has played a role in attracting record-breaking audiences, including 11% growth in visitors in 2011 compared to 2010. Sharick first joined Time in 2002 as a Web producer; since then she managed a number of important projects, including the creation of the digital Time archive. She also oversaw editorial, production, and video, as well as four redesigns and the launch of new blogs and content streams, including Newsfeed, Healthland, Moneyland, Swampland, and Lightbox.
WealthTV, which offers programming targeting an upscale audience, said it has launched a 3D version. WealthTV said 3D programming will offer a travel theme with a look at the ruins in Machu Picchu and Louvre museum treasures. The network is in about 12 million homes. Its 3D feed is available to some homes that are part of the National Cable Television Cooperative, a group that represents small cable operators. Roku boxes can also deliver the network to 3D- compatible sets. It began offering 3D programming on an on-demand basis in 2010. Network Vice President Cameron Westfall, who heads ad sales, stated that 3D “allows you to go places without having to spend a dime. It's the ultimate staycation channel." The network, which carries the tagline “wealth -- an abundance of good” -- said it was at the early edge of the HD movement, offering all programming in HD in 2004. Late last year, the network deviated from its typical fare to carry several fights organized by boxing promoter Don King and plans to offer matches in the third- dimension format moving ahead. AT&T, Verizon and Knology offer the network. As it looks to gain distribution, the network carries its feed online for 99 cents a month. WealthTV offered opposition as the government reviewed whether to greenlight the Comcast- NBCUniversal deal, suggesting the new entity might squeeze out independent networks.
IFC, which is transitioning into an ad-supported network, is going further than spots and dots for the first time with a signature comedy. The network has a deal for its first brand integration for “Portlandia,” where Subaru’s new Impreza will be baked in four times. Subaru, which baked “Portlandia’s” first season, plans to use the relationship with the show as a focal point of its launch efforts. The Impreza will be featured in four “sketches,” starting Friday with star Fred Armisen making an appearance. (Portland, where the show is shot and serves as a conceit, is a top-25 market for Subaru.) Vanessa Benfield, who heads sponsorship sales at IFC, stated that the network and auto brand have a “shared audience -- smart, young adults looking for out-of-the-box ideas, entertainment and products.” With 504,000 viewers in the 18-to-49 demo for this season’s second episode, IFC said those ratings were up 29% over the premiere. By one measure, IFC is up 11% in the demo this season in prime time. The “Portlandia” brand has been expanded into a comedy tour with stars Armisen and Carrie Brownstein taking to the road so successfully, the network said it is adding more dates.