Too much political advertising on TV airwaves? Wait. Much more could be coming. A decision by the U.S. Circuit Court of Appeals in San Francisco could pave the way for political advertising to find its way on public television or radio stations. A divided 2-1 decision from a panel of judges said the ban of political advertising on public TV and radio stations violates the First Amendment’s free speech clause. The court said the ban would not threaten to undermine the educational nature of public broadcast stations. But it did uphold a ban on commercials for goods and services on behalf of for-profit companies. Increasingly public TV and radio stations have been allowing much more messaging of consumer product and service companies, under “sponsorship” models. But that messaging is not in the form of traditional TV commercials. Estimates are that TV political advertising could hit a record amount to $3 billion or more for 2012. Another projection, from Borrell Associates, says that when including all money from PACs and some 13,000 state and local races, total advertising totals will hit $9.8 billion in 2012. Judge Carlos Bea, writing the main opinion, said: "Public issue and political advertisements pose no threat of commercialization… By definition, such advertisements do not encourage viewers to buy commercial goods and services." The lone dissenting judge, Judge Richard Paez, wrote: "The court's judgment will disrupt this policy and could jeopardize the future of public broadcasting. I am not persuaded that the First Amendment mandates such an outcome."
In his first full year at the helm of UK-based Aegis Group, the parent company of Carat, Isobar and other media and digital ad shops, CEO Jerry Buhlmann earned nearly $3 million in 2011. That’s according to the company’s recently disclosed Remuneration Report. That report and other documents were released as the company prepares for its annual meeting in London on May 10. Excluding stock options and awards, Buhlmann’s pay package increased by about 30% to a little more than $2.55 million, including salary, bonus, benefits and pension payments. Gains from stock options and awards added another roughly $440,000. Buhlmann’s employment contract automatically renews each year with provisions for both sides to opt out of the arrangement. Bonus and stock awards are tied to financial growth targets, shareholder returns and how the company performs compared to competing holding companies, according to the Aegis report. In 2011, Aegis generated $1.8 billion in revenues with nearly 10% organic revenue growth, about double what it achieved the prior year. That was higher (on a percentage basis) than most of the other holding companies. In a letter to shareholders in the company’s just issued 2011 Annual Report, Buhlmann predicted that in 2012 Aegis would deliver “sector-leading organic revenue growth which we expect to convert into further [profit] margin progression and earnings enhancement for our shareholders.” The company kicked off 2012 with a huge win: the global General Motors media assignment with ad billings of $3 billion. That one win topped the company’s net new business total for all of 2011: $2.7 billion. Buhlmann described the GM victory as “the most significant new business win in Aegis’s history.” Last year, Aegis sold off its Synovate research unit, a defining event that turned the company into a pure-play media-focused firm. That singular focus will help the company’s performance going forward, Buhlmann stated in his letter to shareholders. “We are now well-placed to build on the significant momentum the business is already demonstrating.”
Consumers who read digital newspaper content respond to digital advertising as well, according to a new survey commissioned by the Newspaper Association of America and performed by Frank N. Magid Associates. Newspapers have a wide digital reach, with 60% of respondents saying they looked at an online version from a laptop or desktop in the last week, while 26% said they looked at an online version using a smartphone, and 12% looked at an online version using a tablet. (There was overlap between these categories; overall, 67% of respondents fell into one or more of them.) The survey, conducted from Jan. 20 to Feb. 1, 2012, consisted of 2,518 online interviews among adults 18+ who use the Internet, followed by another round of 1,179 online surveys for statistical balance, as well as nine focus groups conducted across the U.S. Among digital newspaper media consumers, the NAA-Magid survey found that 66% said they act on digital ads displayed with the newspaper content, while 61% of tablet users said they act on newspaper tablet ads, and 59% of smartphone users respond to ads with newspaper content viewed on those devices. While print ad revenues may be declining, newspapers’ print products are also still reaching large audiences, with 66% of respondents saying they looked at the Sunday print edition of a local newspaper in the last seven days, and 64% saying they looked at the weekday edition in the same period. Overall, 80% of respondents fell into one or both of these categories. 73% of respondents said they have used printed circulars included in newspapers in the past 30 days, and 74% said they make a point of looking at printed Sunday circulars. The preferred means of consumption varied considerably by age cohort, with 65% of adults ages 18-34 saying they read the newspaper on a computer in the last week, compared to 48% of adults 65+. Likewise, 41% of adults ages 18-34 read the newspaper on a smartphone, versus just 11% of adults 65+.
Cable operator Charter Communications said it will use ad widgets from FourthWall Media to propel advanced advertising opportunities in 800,000 homes in five markets. The ad opportunities include “addressable versioning,” where different interactive opportunities for viewers could be offered to different customer targets (based on demographics or geographies) simultaneously during interactive spots. Also, advertisers could run different (noninteractive) billboard overlays during the same spot, again aimed at different customer segments. In addition, there are ways to switch from a TV spot to VOD longer-form content and request-for-information interactive ads, where a customer can order a free sample or additional information through the mail. Jim Heneghan, president, Charter Media, stated that interactive TV "connects businesses with viewers in real time on their television." FourthWall’s Ad Widgets use the EBIF and SaFI standards. Tim Peters, FourthWall CEO, stated: “Commercials will become more engaging for consumers to watch, more effective for the advertisers, and the post-buy analysis will provide clear and accurate usage information." Charter and other operators, such as Comcast and Time Warner Cable, are moving aggressively to ramp up interactive ad opportunities in local markets.
NFL Magazine, Soap Opera Weekly Close While there have been fewer big magazine closures since the dark days of 2008-2010, weak print ad demand and the transition to digital media are still claiming victims. Recent weeks brought the shuttering of NFL Magazine -- a relatively recent arrival, which exited the field after just four issues -- and Soap Opera Weekly, long a staple of grocery store checkout lanes. NFL Magazine was closed after the NFL ended its business partnership with Dauphin Media Group, which had been publishing the magazine, according to the Sports Business Journal. The monthly magazine, which cost $4.99 on newsstands and $19.99 for a subscription, may have suffered from the perception that it had to pull editorial punches because it was owned by the NFL itself, Ad Age speculates. Soap Opera Weekly is also closing, publisher American Media Inc. announced, citing a “decline in readership in the soap opera market,” according to Adweek. Per the most recent circulation report from the Audit Bureau of Circulations, in the six-month period ending December 2011, Soap Opera Weekly had average newsstand sales of 56,632 and 51,185 paid subscriptions. That's down from 125,990 newsstand sales and 75,087 paid subscriptions in the six-month period ending December 2007 -- declines of 55% and 32% respectively. Continuing subscriptions will be fulfilled with Soap Opera Digest. Overall, more magazines are launching than are being shuttered, according to recent figures from Mediafinder.com, an online database of U.S. and Canadian publications. The first quarter of the year saw the debut of 52 titles, versus just 12 titles shuttered, according to the company. However, the ad environment remains challenging, as total ad pages for consumer magazines tracked by the Publishers Information Bureau decreased 8.2% in the first quarter of 2012 compared to the same period last year. Time Out NY Bows New Digital StrategyTime Out New York has unveiled the latest step in a digital media expansion, which includes e-commerce, a new Web site, and new apps for the iPad and iPhone. The new site offers improved search capabilities, faster navigation, and allows visitors to make transactions, including purchasing tickets to theater shows and booking tables at restaurants. TONY has also partnered with local niche companies to offer subscribers daily discounts and deals for local products and services. The new TONY iPad app is positioned as a personalized, citywide recommendation engine, featuring daily content tailored to the user's individual interests, leveraging technology from LikeCube (recently acquired by TONY) and its personalization algorithm. Its iPad app is launching with MasterCard as a lead sponsor. Whole Living Debuts On iPadMartha Stewart Living Omnimedia unveiled the iPad version of Whole Living this week. The digital issue, available via the iPad Newsstand, includes the full contents of the magazine as well as bonus features like step-by-step viewing options for all recipes and audio clips from Editor in Chief Alanna Stang and contributors. MSLO added that beginning with their May issues, the monthly digital editions of Whole Living, Martha Stewart Living and Everyday Food are now all optimized for the Retina display on the new iPad. Digital subscriptions for Whole Living, Martha Stewart Living and Everyday Food are available for iPad starting at $11.99 for digital-only and $14.99 for print and digital bundles. Single copies are available for purchase starting at $2.99. Current print subscribers receive free access for the length of their print subscription. Women's Health Unveils iPad App Another major women's interest title is hitting the iPad with the debut of an interactive version of Women's Health,beginning with the May 2012 issue, available on iTunes for $4.99 beginning April 17. The new interactive version includes video, audio, and stop-motion animations, among other features, allowing users to engage with editorial content more actively. The magazine added new interactive features to favorite content areas including its 15 Minute Workout section and its Scoop Fitness series. Meredith Raises Rate Base For Eating Well Meredith Corp. said it plans to increase the rate base for Eating Well for the second time this year, from 500,000 to 600,000, effective with the September-October 2012 issue. That represents an increase of 71% over the same period in 2011. In January, the company raised the rate base from 350,000 to 500,000. Over the last year, the brand has rolled out a number of extensions, including content and brand licensing, custom publishing, and consumer cookbooks and health books. It has also struck licensing partnerships with media outlets including Yahoo and The Huffington Post.Parents Radio Debuts on Sirius XMParents is launching a limited-run six-week-long radio series on Sirius XM Radio, featuring top editors from Parents and experts discussing parenting news, tackling common problems and offering expert advice on health, child behavior and family relationships. The show will include calls from parents across the country; listeners can also ask questions interactively via Facebook and Twitter. “Parents Radio” will launch Saturday, April 14 at 10:00 am EST and will air every Saturday through May 19 from 10:00-11:00 am EST on SiriusXM Stars channel 107.
A top Univision executive did not offer any spin with regard to the competition the company’s new 24-hour sports cable network faces. With Fox and ESPN having all-sports, Spanish-language networks, Univision’s David Neal said: “We’re late into the game.” But he added there is "clearly room for all three of us -- we think there’s enormous growth [ahead]. Univision Deportes Network launched last Saturday with games from the Mexican league and Major League Soccer, along with its flagship studio show “Univision Deportes Extra,” the network’s version of “SportsCenter. UDN carries a “Cambió El Juego” (“The Game Has Changed”) tagline. Neal, a longtime NBC Sports executive who joined Univision last year as a senior vice president, echoed themes that Spanish-language programming executives have highlighted for some time: Advertisers have under-recognized the Hispanic audience. “We’re not getting the return that’s commensurate to the value” of the “loyal” and “passionate” viewers delivered, Neal said. UDN has rights to 12 of the 18 teams in the Mexican league; in 2014 it will run ample content linked with Univision’s coverage of the World Cup. After that, Univision will cede World Cup rights to Telemundo, but Neal said: “We’re in this business to stay.” So far, UDN only has distribution on Dish Network. However, offering live World Cup games on the network -- no decisions have yet been made -- may help grow reach.
Can't go on vacation (or even to a movie or ball game) without checking email or logging into social media? When was the last time you spent a solid uninterrupted hour just reading a dead-tree book or magazine? A growing number of folks log into social media when they watch TV (some say in an attempt to save shows looking like they might not be renewed). A University of Chicago study found that most people say Facebook, Twitter and email are harder to resist than cigarettes and alcohol. You know this is true, because you have to practically beat your kids to stop them from texting during meals (or any other time, for that matter.) But you are probably just as bad; after all, a Neverfail survey reports that more than 50% of folks say they send emails during a meal with family or friends. You probably think you're impressing your boss by being "on" 24/7, when really you are just feeding your addiction to the fear of "missing something." Perhaps there is truth in Jeff Einstein's contention that "In recent years we have entered what I call the Great Age of Addiction & Loss, an age characterized most notably by an irrefutable addiction — both as individuals and as a nation — to all things media." Out where I live, drivers are running over and killing pedestrians because they can't resist the urge to answer the phone or send a text while behind the wheel. Back when I used to do a fair amount of distance running, if I didn't see a driver's eyes meet mine, I stepped off the road. As advertisers, in this new media world order, we need to rethink our traditional concepts of impressions and engagement, since we are now only getting snippets of audiences' attention. Tom Cunniff, one of the smarter, more thoughtful marketers out there, earlier this week wrote that we are in "the age of Ambient Media" because all of our devices are on and available, with our attention flitting from one medium to the next, or to none at all. Everything is devolving into an endless media stream. As individuals, we need to take a moment and disconnect. I recently took a couple of my kids on a spring break vacation and purposely left my BlackBerry at home. It was great. Since I have clients, I logged into my laptop a few times a day to make certain there were no emergencies, but I didn't read the usual endless e-blasts from the trade pubs, nor even watch TV. Never plugged into an iPod. Just read a book. What you notice when you unplug is how utterly pervasive media is around you. On the beach, at the pools, in the restaurants, folks all around us were plugged into an electronic this or that. Suddenly, even the Muzak at every venue -- including the weight room and the spa -- was annoying. Interestingly, the backlog of TV shows I record each week was so overwhelming on my return that I deleted about half of them and never missed a beat when I played the following week's episode. So tuning out was not the end of the world I expected it to be. In fact it might even be beneficial. A religious studies professor at the University of Pennsylvania teaches a class called "Living Deliberately," which has no exams, no formal papers and little required reading. However, students are expected to modify their lifestyles with a set of restrictions drawn from monastic traditions: They must give up alcohol and refrain from using electronic communications. Apparently, the students who enroll find that living without the Internet makes a profound difference in their lives. "Every student who has taken this class has said without exception that they have done better in their other classes, and they have been able to focus more," says the prof. "This is the best thing for their work they have ever done." Hmmmmmm.