Current reports suggest that TV advertisers are paying anywhere from 13% to 29% price increases for a TV commercial in the upcoming Super Bowl versus a year ago. Prices are ranging from $3.5 million to $4.0 million for this year's game, which will be telecast this Sunday on NBC. According to The Nielsen Company, the average price for a commercial in last year's game was $3.1 million. For advertisers, the Super Bowl offers exposure to the most-viewed TV show of the year. The price of the Super Bowl spot and the resulting awareness level can reflect the varying prices for commercials, with advertisers usually paying more for ads in the beginning moments of the game. Super Bowl messaging has better recall than other TV programming during the same period. Nielsen says 2011's Super Bowl XLV commercials, on average, were 58% more "memorable" than commercials airing during regular programming in the first quarter of 2011. In addition, brand awareness for commercials airing during the Super Bowl was up to 275% higher than awareness for the same creative during regular programming. By way of comparison, the average price for a 30-second prime-time commercials in the first quarter of 2011 was $96,800 -- down from $101,500 in 2010. While last year's game averaged 111 million people, Nielsen says certain moments of the game -- including commercials -- did better. Four automotive spots made Nielsen’s annual "Most-Liked" list, while Chevrolet's "Wild Ride" became the most-watched TV commercial of all time, with an estimated 119,628,000 viewers watching its Super Bowl spot. Last year, automotive roared back into the big event, coming out of the recession dramatically paying twice as much total media dollars as in 2010 -- at $77.5 million, up from $32.7 million, the biggest Super Bowl ad category. Other categories included: beer, $21.7 million, down from $32.7 million; movies, $31.0 million, up from $16.4 million; soft drinks, $12.4 million, down from $14.9 million; and tortilla chips, $9.3 million from $11.9 million.
With mobile advertising and marketing budgets growing, agencies are scrambling to bolster in-house expertise to match client demand. In that respect, SapientNitro, AKQA, Ogilvy, TribalDDB and Razorfish lead the pack, according to the first Wave report from Forrester that ranks digital agencies by mobile capability. To qualify for the evaluation, Forrester required agencies to provide a comprehensive set of mobile marketing services, have at least five years of mobile experience, a strong and growing revenue stream from mobile marketing and appear frequently as a competitor for new business and on brands’ short lists. The ranking criteria also included the agencies’ methodologies for strategy development and program execution, their approaches to technology for measurement and analytics and the strength of their company vision for mobile. That process ultimately boiled down to nine leading U.S. vendors, which also included iCrossing, VML, Rosetta and Possible Worldwide, described as “strong performers” behind the top five. Overall, SapientNitro received the highest client scores on a scale of zero (weak) to five (strong) across roughly 12 metrics spanning their current services, strategy and market presence. “The agency challenges its clients to think creatively about mobile’s role in strategic development and has the execution chops to implement. SapientNitro also brings a very long-tenured and experienced mobile management team that is well positioned to bring to life its clear and forward-looking vision for mobile,” stated the Forrester report. Runner-up AKQA was cited as a strong choice for any brand “looking to make a big splash in mobile,” but the study said the agency could improve its marketing skills and tactics. Ogilvy was credited with having a detailed long-term plan for mobile expansion, but needs to balance its vision with greater focus on clients’ immediate needs. Similarly, the report gave TribalDDB high marks for expansive client relationships and the ability to integrate mobile with other strategic initiatives, but faulted its optimization efforts' post-campaign launch. Razorfish was dinged for being too expensive. “The clients we spoke with feel that Razorfish costs more than other agencies with comparable services. However, the agency has a very good client retention rate. So if cost is a concern, it’s not keeping the vast majority of its clients from maintaining the relationship,” stated the report. Rosetta was also viewed as pricier than competitors. Among others, iCrossing was noted for using its background in search to develop more detailed audience personas than other agencies and provide strong mobile analytics. VML earned the highest scores for collaboration, “making it a great choice for any brand that has a full agency roster and needs to add a mobile partner to the mix,” according to Forrester. While the top-ranked agencies had varying strengths and weaknesses, the study underscored certain common approaches to mobile. These include spreading mobile expertise across different departments or disciplines within agencies so mobile know-how isn’t siloed within one group. Likewise, the vast majority of mobile programs studied were part of a larger, integrated digital effort. Even where an agency is hired for just the mobile piece of a campaign, it must work with other agencies to ensure a consistent approach for engaging the customer. All the agencies also predict that mobile will eventually eclipse PC-based use and that the medium will become the key connection between online and offline worlds. That, in turn, will lead mobile strategies and technology to end up in everything from cars to cable boxes.
London-based Aegis Group has acquired a minority stake in The Upper Storey, a Singapore-based digital agency. The purchase is Aegis' first acquisition amid an aggressive holding company buying spree that kicked off earlier this month with MDC Partners’ purchase of media shop R.J. Palmer. Aegis indicated that Upper Storey would become part of Isobar in Asia-Pacific and will be rebranded as TUS Iosbar. Clients include Microsoft, American Express and Intel. Although it's the first acquisition by Aegis this year, look for significantly more purchase activity from the media- focused holding company. When it sold its research arm Synovate last fall for $834 million, Aegis CEO Jerry Buhlmann said the company was earmarking some of the money for the purchase of 50 to 60 small- to medium-sized agencies primarily in the top 20 global markets. Buhlmann said the firm's acquisitions would focus on faster-growing digital companies, such as those in the social and mobile sectors. The Aegis acquisition follows last week's flurry of activity when WPP, Publicis and Interpublic all confirmed one or more acquisitions. Publicis Groupe said it made a tender offer for the 40%-plus stake in a German digital shop that it doesn’t already own: Pixelpark. It offered a reported $17.5 million for the outstanding shares, putting a total value on the company of about $40 million, per sources. Commenting on the acquisition, Publicis CEO Maurice Levy stated: “The German market is very important to us. By integrating Pixelpark, we're strengthening our global presence in this sector and ensuring that our clients can benefit." Interpublic last week bought Fuse, a UK digital agency that it said would become part of the GolinHarris PR network. Founded in 2004, with a focus on design, clients include Unilever, Bissell and Tia Maria. Stated Fred Cook, CEO of GolinHarris: “Fuse will significantly strengthen our digital, interactive and creative offerings. As the lines between PR, digital and advertising continue to blur, these added capabilities will allow us to deliver more fully integrated client campaigns that span earned, owned, shared and paid media." WPP bought stakes in four shops last week, including a 75% interest in Israeli media agency Union Media and 51% in Idea, a Jordanian full-service ad agency. As previously reported, it also bought a majority stake in 41?29! Media Internet, an independent digital agency based in Istanbul, Turkey, and an additional 25% of The PBN Company, a PR shop with offices in Russia, Ukraine and other former Soviet Republics. The purchase gives it majority control of the firm.
One of the original big-ticket branded entertainment-connected TV shows, "Celebrity Apprentice" has announced a new slate of in-show sponsors: food company Kraft, drug retailer, Walgreens and confectionary brand M&Ms.NBC has also announced some of last season's -- General Motors, Good Sam, and Farouk Hair Systems -- will be making a return for the show. Now in its 12th edition, it premieres on Sunday, Feb. 19. Other season sponsors this year include Entertainment.com, Ivanka Trump Collection, O-Cedarand Five Star Fragrance.Major marketers have played a large part in the content of each episode -- especially when it comes to in-show marketing challenges. Early on "The Apprentice," the original title of the series, had a price tag of around $2 million to $3 million for a single branded entertainment deal for each episode. While media buyers say the price tag has dropped -- as have the ratings -- the show has remained an effective market tool.Last season's finalists, John Rich and Marlee Matlin, won for a '70s and '80s retro for 7UP. Winning celebrities will get $250,000 to give to charity.Through the show's 11 seasons, other brands on the show have included Best Buy, Burger King, Dove, Domino’s Pizza, Dairy Queen, The Dial Corporation, Home Depot, Kodak, Lexus, Microsoft, Nestle, Outback Steakhouse, Procter & Gamble, Staples, Pontiac, Pedigree, Priceline.com, Right Guard, Rockport, Snapple and Unilever.Donald J. Trump, host and executive producer of the show, stated: "'The Celebrity Apprentice’ proves that between our fantastic cast and the creative tasks they participate in, the show offers an extraordinary value for our partners.”
The fourth quarter of last year didn’t bring much good news for newspaper publishers, judging by some of the first results announced this week by Gannett Co., which serves as a bellwether for the rest of the newspaper industry. Total revenues at Gannett fell 5.1% from $1.46 billion in the fourth quarter of 2010 to $1.39 billion in the fourth quarter of 2011, according to the company, which attributed the drop to a weak print advertising demand, as well as the absence of political advertising associated with the 2010 midterm elections. (The latter mostly impacting the company's broadcast TV operations.) In the fourth quarter, Gannett’s publishing division revenues declined 5.3% to $1.01 billion, as total advertising revenues slipped 7.1% to $670.7 million. Like other big newspaper publishers, ad revenue declines were spread across all the major categories, with retail down 5.8%, national down 9.1% and classifieds down 8.4% in the fourth quarter. Within the classifieds category, automotive was down 6.5%, employment slipped 2.6% and real estate fell 12.9%. In addition, Gannett’s broadcasting revenues slipped 14.2% to $199.8 million in the fourth quarter of 2011. As noted, this was due mostly to the absence of political advertising, which accounted for $47.5 million in revenues in the fourth quarter of 2010. Removing political advertising from the comparison, total TV revenues were actually up 11%, due in part to strong automotive advertising. Another bright spot was digital revenues, which increased 6.5% to $290.3 million in the fourth quarter, due primarily to strong growth at CareerBuilder, the company’s online classifieds service for employment. For the full year, Gannett’s total revenues declined from $5.44 billion in 2010 to $5.24 billion in 2011. This was likewise attributed to weaker print advertising demand, with total publishing advertising revenues for the year decreasing 7.4% to $2.51 billion. Publishing circulation revenues edged down 2.1% to $1.063 billion, while full-year broadcasting revenues slipped 6.1% to $722.4 million. However, digital revenues for the full year were up 10.1% to $1.1 billion, accounting for 21% of the company's total operating revenues.
Pac-12 Enterprises has hired David Aufhauser as vice president and general manager of digital media. The hire comes as the subsidiary of the Pac-12 college conference is preparing to launch a series of new sports networks to showcase the teams of its participating schools. Fox and ESPN will continue to have rights to separate Pac-12 game packages. Aufhauser will oversee all aspects of the Pac-12’s digital business, as well as the creation and management of the Pac-12 Digital Network. The digital network will be aligned with the TV networks and enable the conference to distribute many more events that otherwise would receive no exposure. The digital network will feature hundreds of live Pac-12 athletic events and other original programming from the conferences' 12 campuses. It will offer live streaming, mobile technology and social TV capabilities, allowing consumers to watch Pac-12 events on an array of devices. The new network is expected to launch in August in time for the new college sports season. “We have an exciting opportunity to create a meaningful and lasting digital media platform to enrich our fans connection to the Pac-12 Conference,"stated Pac-12 Enterprises President Gary Stevenson. He cited Aufhauser's "knowledge, creativity and experience" as assets in the space. Aufhauser, was previously a vice president at Say Media, where he managed the global ad network. Previously, he was the chief business officer at video streaming company Justin.tv, heading up business development and strategy. Earlier, Aufhauser led business development and operations at Yahoo Sports. Before that, he held posts at Bebo, Citizen Sports, Evite and Netscape. Pac-12 recently hired longtime agency and network TV sales veteran Bill Cella as as chief revenue officer.
CNBC has signed an upfront deal with agency MPG on behalf of its client Fidelity that offers dual guarantees, based on both Nielsen and Rentrak data. Agreed to during the calendar upfront market, CNBC has guaranteed Fidelity certain audience delivery figures in both the adult 25-to-54 demo (from Nielsen data) and households with incomes of $150,000-plus (from Rentrak). If either figure is not met, CNBC has to provide makegoods. Yet over time, the network could attract more dollars from advertisers targeting upscale audiences by promising the household-income results. The Nielsen data comes from its national panel, while the Rentrak information is culled from set-top-box data, which is combined with income-level information provided by Epsilon. This marks the first deal MPG has done using Rentrak data as a guarantee -- a watershed for Rentrak, which has said the TV market has room for more than one data set. Nielsen is moving ahead with plans to offer ratings culled partly from set-top-box data on a local level. But it has no plans to abandon its traditional sample in the national market, despite cries for data to come from larger pools of viewers. Robert Foothorap, a senior vice president in sales at CNBC, said that the network is open to “customizable” deals fitting client goals. Fidelity CMO Jim Speros said that a dual-guarantee approach offers “another level of depth to our measurement, which ultimately provides greater accountability.” In October, NBCUniversal researcher Sheryl Feldinger gave a presentation showing that Rentrak data can provide more stable performance data for CNBC -- less volatility over a specified period -- since it is culled from more homes than are in Nielsen’s panel. “We'd love to see more networks, particularly cable news networks, subscribe to Rentrak to give clients, such as ours, a more qualified look at the upscale targets that are central to our marketing success,” said MPG Senior Vice President Tracey Riener.