Two versions of the franchise hit CSI helped push CBS to another victory in this week’s Nielsens, slightly ahead of NBC and well ahead of FOX and ABC. ABC didn’t even appear in this week’s Top 18, while FOX made the Top 10 with a thrilling Game 2 of the World Series. CBS owned four of the top 10 network ratings winners -- #1 CSI plus Everybody Loves Raymond, Survivor: Thailand and CSI: Miami – to earn an 14 share/8.9 household rating. NBC earned a 13 share and an 8.2 household rating with five of the top 10 shows: E.R., Friends, Law & Order, Will & Grace and Scrubs. FOX received an 11 share and 6.9 household rating on the strength of its coverage of the first two World Series games. ABC, whose only top 25 shows were Monday Night Football and The Practice, received a 6.1 household rating and a 10 share.No shows from the other three broadcast networks hit the top 25. The WB registered a 3.1 household rating and a 5 share. UPN earned a 2.6 household rating and a 4 share. PAX received a 0.9 household rating and a 1 share.
The Hallmark Channel has laid off 130 people (including its CEO) in a restructuring its parent company says will strengthen operations in the United States and Europe and hopefully break even by mid-next year. The network reaches 47 million homes in the United States and another 47 million worldwide. The Hallmark Channel is owned by Crown Media Holdings Inc. The greeting card maker owns 67% of Crown Media, which relaunched the former Odyssey Network as Hallmark in July 2001. And while it bills itself as one of the fastest-growing networks, it’s also been hard hit by a number of factors. While sales increased from $66.8 million in 2000 to $107.1 million in 2001, The Hallmark Channel’s losses rose too, from $116 million in 2000 to $229.1 million last year. A spokeswoman in part blamed the worldwide downturn in advertising for the Hallmark Channel’s woes. It’s not the first time Crown Media has restructured. In October 2001 – soon after Odyssey became The Hallmark Network – the company cut about 15% of its work force for what it said at the time was to “utilize the synergies” between the U.S. and international divisions. But apparently more work needed to be done. This month’s cuts amounted to 30% of the 450 employees. Senior Vice President Mindy Tucker said Crown Media decided to focus its efforts on the U.S. and Europe, where The Hallmark Channel is stronger, and cut back in Latin America and Asia by reducing feeds. The U.K. office is being expanded but other offices in the United States are being scaled back. That led to Hallmark Channel President/CEO Lena Corbi’s departure. Crown Media Holdings President/CEO David Evans will take Corbi’s responsibilities. Corbi, a former Fox executive who had been COO of Odyssey since March 1999 and who signed a three-year employment agreement last November, remains as a consultant until the end of the year. “Lana is a very talented and skilled executive and she has played an important role in the launch of the Hallmark Channel … Were it not for the very difficult corporate decisions that had to be made, she would still be a part of the company,” Evans said. Tucker said the Hallmark Channel’s average viewer should see no changes. Crown Media is attempting to expand both its U.S. and European subscription base, which was expanded earlier this year through a deal with DirectTV. “We’ve been pleased with the growth to date,” Tucker said. Hallmark’s delivered an average 0.5 share in Q2. Looking ahead, Tucker said the network is about to launch a “Watch and Win” promotion with Nestle, Campbell’s and Hallmark. The network tie-in will be built around six original holiday-themed made-for-TV movies that will begin airing six consecutive Saturday nights on Nov. 15.
Looks like the pharmaceutical category will be one of the main drivers behind overall ad revenues next year. At least two new reports are predicting that drug manufacturers are finding success with increased marketing to consumers and are poised to increase expenditures next year. “We think the pharmaceutical category to double over the current levels over the next four to five years,” said Eric Bolesh, marketing director for research firm Cutting Edge Information. “Pharmaceutical companies will make more resources available to for advertising.” By most accounts the pharmaceutical category will end this year up more than 20% over 2001. In a year where break even or marginal increases can be seen as victory over a tough economy, you could make the case that big advance pharmaceutical ads saved the media business from a second year of negative numbers. Cutting Edge is preparing a report that shows major drug firms are racing to launch major drugs in a similar fashion to a Hollywood studio launching a blockbuster film. Losers in the market the report says, struggle out of the gate and fail to achieve maximum impact among consumers. Another recent study for IRI, provides “reassurance” that the $2.8 billion spent by pharmaceutical manufacturers on DTC advertising during 2001 was well-noted by sufferers and non-sufferers alike.” The study concludes that since the Federal Drug Administration's relaxation on pharmaceutical advertising guidelines in 1997, targeted consumer advertising has positively impacted consumer awareness of pharmaceutical products. However, consumer perceptions of DTC advertisements are mixed. Two-thirds of those surveyed indicate that DTC television advertisements are incomplete and 47% find the ads confusing. “Study findings clearly support that the ability to motivate consumers to initiate discussions with their physician about a particular brand remains a distinctive competency for DTC advertising and a significant opportunity for manufacturers,” said the IRI study. Bolesh expects the Internet to benefit from the pharmaceutical commitment. “It is the perfect media for this category,” he said. “It has no limit in terms of the amount of information it can include. It encourages communication. Websites promoting drugs will become more popular next year and advertising to drive traffic to them will be more important.”
Its gold and glass trophies have been featured in car ads for years, but J.D. Power and Associates have never had a direct connection with the consumer. That will change next spring, when the research firm dips its toe into the publishing field in a joint venture with Hearst. The automotive magazine will tap high-income readers of four of Hearst’s existing titles to test consumer’s reaction to a J.D. Power Car Guide. If it goes well, the two may extend their partnership to a full-fledged title and tap J.D. Power’s other data centers, from boats to healthcare. “I don’t know if it’s a bad thing to launch in bad times, because you’re not going against some other launches,” says J.D. Power and Associates partner Tom Healey. Noting that Fortune magazine was launched during the Depression, Healey adds, “Some very big things were done in bad times. You can have success in bad economic times while the faint of heart are on the sidelines.” Indeed, the J.D. Power Car Guide will be more likely to be on the newsstand than on the sideline, as well as polybagged in four Hearst publications, including Esquire, Town & Country, SmartMoney, and Popular Mechanics. With a circulation base of 160,000, the self-standing outsert will be targeted to high-income readers who are more likely to be buying that new car. The first issue appears along side the March issues, with a second planned for November. “If these are well received, we’re looking at broadening the constituency and very possibly putting it on the newsstand,” says Healey. It could also move beyond the automotive category. “Cars is what we have the most measures on, so this is a good place to begin. We also have a health care practice and travel, and it is conceivable that some of these things could also have legs.” The magazine’s editorial content will focus on rating the best cars and trucks, buying tips as well as offering insight from consumers who already own a vehicle. Popular Mechanics editor-in-chief Joe Oldham will add oversight of the J.D. Power guide’s editorial. Targeting both automotive and non-automotive advertising categories, sales are handled by Hearst under VP of advertising sales for the western region Lois Miller, who has been named publisher of the J.D. Power project. Although he wouldn’t name advertisers, Healey says they already have some commitments for the first issue. Downplaying any fear that connecting J.D. Power’s brand image with advertising could be dangerous, Healey points out that they already permit their claims to be used in car ads.