Some traditional cable TV program ratings may be affected by Netflix, Amazon and other services that offer up rerun programming, per a media analyst. A number of major cable programming groups have seen viewership declines, most recently in the second quarter of 2012. Anthony DiClemente, media analyst of Barclays Capital, believes more competition could be the reason. “We believe most of the ratings weakness is concentrated in syndicated and rerun programming, a genre that now has more direct competition from online platforms like Netflix, iTunes, and Amazon,” writes DiClemente. “As such, we believe live sports and originals are increasingly important to the economics of both cable and broadcast programmers. Despite the anemic industry trends, Discovery continues to operate on a different tier, and has thus far, posted ratings growth of 16% in the 2Q.” DiClemente notes that second-quarter to-date ratings are a bit better than first-quarter numbers -- but still nothing to write home about. He says through May 27, five of the eight major cable programmers were flat or down in the quarterly ratings -- AMC Networks was off 13% year-to-year; Viacom networks down 10%; NBCU channels losing 10%; Time Warner networks off 5%; and Disney channels were flat. Media analysts have theorized that a sudden viewership decline in some kids' networks -- in particular Nickelodeon -- was due to more programming being made available on subscription video-on-demand services like Netflix.
In an important test of a new interactive storytelling experience, MTV this week launched a new series called “Teen Wolf.” That’s right -- new. While the second season of the MTV series by that name debuted Sunday night following its telecast of the 2012 MTV Movie Awards, a new, parallel, interactive version of the series debuted Monday on, well, a variety of screens -- just not television ones. The main platforms for the interactive “Teen Wolf” series are fans’ own personal screens -- whether they are PC, tablet or handheld -- and the primary distribution engine for it is Facebook, where the series has already amassed 1.5 million fans, making it one of the most-liked MTV programs of any kind. The number of Facebook fans is up about 50% from when the series’ 2011 season ended, and the growth on the social network, says Kristin Frank, is testament to the fact that “Fans don’t stop being fans just because seasons end, and episodes end.” Frank, who is senior vice president-general manager of MTV and VH1 Digital, calls the concept “storytelling without borders,” which is her way of describing what others in the business have been using buzzwords like “transmedia” or cross-platform storytelling to define. The idea is probably as old as storytelling itself, but the media industry began exploring it in earnest in the early 1990s when digital interactive media –- at first, kiosks, then CD-roms, and ultimately networked computing -- but to date has been largely experimental and has not generated much fruit in terms of scaling audiences for programmers and advertisers. But MTV’s Frank says both the media environment and the expectations of fans have changed markedly in the past couple of years, and the time is right for a new form of storytelling that runs “parallel” to a regular TV series like MTV’s “Teen Wolf.” The benefits, she says, are for the TV program (heightened buzz and promotion), the advertiser (oodles of brand integration opportunities), but mostly for the fans themselves, because unlike any series before, the digital version of the “Teen Wolf” series will enable users to be immersed in a way that allows them to experience the stories unlike anyone else, and on their own time, and in their own level of engagement. “You can have a very different experience than your friends can,” she says, explaining the logic behind the interactive fiction, which utilizes elements of social media, game mechanics, and multiplatform narratives that weave in and out, and go off on their own from the mainstay TV series. The effort is possible, Frank says, because the show’s creators and writers are also working on the interactive components and see it as a genuine extension of the TV series’ primary story arc, but on a more personalized level. Facebook users who are fans of the series will receive direct feeds on their walls, in their message boxes, as well as SMS text messages to their mobile phones that invite them to follow secondary narratives along. Most of the content is experienced in text narratives, although sometimes they link to videos or other multimedia content that users can determine how much time to spend with -- whether they go deeper or to other levels, and of course, whether they share them with other friends. Each week, digital fans of the series will receive cues to experience between three and upwards of seven “scenes” of related content, according to MTV Executive Producer Tom Akel, who is overseeing the digital version of the series. Akel says viewers must experience at least three “critical scenes” that are integral to following the narrative, but that they have the flexibility of experiencing them superficially (about five minutes each) or more deeply (upwards of a half hour). It’s all based on their own self-interest and motivation, he says, making it a truly interactive fiction. Frank says the goal is first and foremost to service fans who feel a “radical intimacy” with TV shows and their characters, and want ancillary ways of experiencing them, but the payoff could be for the show’s producers and advertisers by adding to an already fervent fan base. If the digital series is successful, Frank says MTV will try it with similar long-form content in the future. “We’ve done a good job with our tentpole events,” she says, referring to the interactive storytelling enhancements MTV has developed around big events such as last weekend’s MTV Movie Awards. “This takes it to the next level. At the end of the day, good storytelling is good storytelling. This will only enhance it.”
Walt Disney will announce a radical plan to ban junk food and other high-calorie kids' food commercials from its networks and stations -- all of which will initially hurt TV advertising sales. Although Disney says there will be some lost advertising revenue, the company says health food marketing will grow. The new plan will include kids' morning programming on ABC stations. The New York Times, which broke the story, says under the plan, products like Capri Sun drinks and Kraft Lunchables meals -- both current Disney advertisers -- will no longer accept TV advertising on their media platforms. Disney says it will introduce something called "Mickey Check" in grocery stores, which are Disney-licensed products that meet certain limits on calories, saturated fat, sodium and sugar. It will display a logo consisting of Mickey Mouse ears and a checkmark on their packaging. The ban on junk food ads will expand to Disney theme parks, where the company promises to reduce sodium levels for products that it serves. There will be a TV marketing campaign to support the effort. Disney’s ad restrictions apply to any programming targeted to children under 12. This will include animated programming and live-action programming.
One Wall Street analyst sees CBS becoming less dependent on advertising sales in five years -- with TV advertising representing less than 50% of its revenues from all its TV businesses. Brian Wieser, senior research analyst of the Pivotal Research Group, says CBS’ revenue from retrans fees -- as well as domestic, international and digital sales and cable networks -- will grow to $5.9 billion by 2017. That's more than all CBS’ TV advertising revenue, which is the majority of the company’s advertising revenue -- other areas being outdoor and radio. In five years, these non-advertising revenue businesses will exceed total TV advertising revenues, which Wieser estimates will be $5.6 billion --- $4.1 billion coming from CBS network TV ad sales and $1.5 billion from its local TV stations. By way of comparison, CBS network TV ad sales in 2012 are estimated to be $3.7 billion, while local TV advertising revenues are projected to reach $1.3 billion, for a total of $5 million. Total non-advertising revenues currently stand at $3.1 billion (in 2011). Revenues from retrans fees will be $250 million for 2012. Analysts have long worried over CBS’ exposure to sudden swings in the advertising market, where advertising revenues have represented up to 75% of the company’s overall revenues. That equation subjects the company to possible financial malaise, versus other big media companies that have more diversified media businesses. “CBS is the media stock best positioned to capitalize on what we believe are perpetually favorable trends benefiting the network TV business and its ancillary activities,” writes Wieser. Still, Wieser believes in future that CBS will reap rewards from its TV ad-related businesses: “Advertisers buy TV in general and broadcast networks in particular. Doing so is better and will remain better than all other alternatives for the foreseeable future.”
Toyota's Scion brand is launching a campaign this week in New York and 25 other major markets to talk about its new FR-S sports car. Because this is the first true performance vehicle under the Scion lineup, the campaign,via AOR San Francisco-based Attik takes digital, TV, print and out of home elements beyond the usual pure-Millennial channels. The campaign for the rear-wheel, 200-hp two-door roadster carries a "Bringing the Sport Back to the Car" theme. The campaign carries the tag "Driving is Back" and focuses the performance and handling message. Running footage was shot with racer Ken Gushi at the wheel. The TV buy is directed at Millennials per the brand's strategic raison d'être, but it is reaching more broadly than that as well. The automaker, which has also shifted away from boxy cars like xB and xD, is beginning with out-of-home elements in 40 locations in over two dozen cities, and first of three 30-second TV spots. The ads are airing both on youth-centric TV with NBCU syndication, and on NBC, Fox and every major sports network, per the company. "Bringing the Sport Back to the Car," the first ad, is bookending the three-month TV buy, with other campaign elements running between June 25 and Aug. 5. More video ads will run on the brand's social media channels and Web site well into the fall. Print starts mid-month in a long roster of male-oriented magazines like Sports Illustrated, Maxim, Motor Trend, and Men's Journal. The media mix also brings in banner placements both on Scion's standard range and new targets, per a release on the campaign. "Since the FR-S is Scion's biggest push into the sport coupe market yet, we wanted to extend our reach beyond our typical media channels," said Ron Lim, Attik's creative director in the statement. "This car already has a lot of buzz around it, and we are aiming to build on that excitement. Of course, television is still a powerful mass medium." He said this is also the first time the automaker has launched in mainstream automotive pubs. "Our campaign is much heavier in details than usual as well...it was important to reach enthusiasts this time out. " Lim said that in July the company will also use smartphone apps that show the FR-S in action through Digimarc codes embedded in the print. "This is a great way to feature the very emotional driving experience within a static print ad," he said. There will also be an iAd in targeted apps for the iPhone and iPad that allows viewers to view videos and explore more features of the FR-S. Attik chose Digimarc to do the smartphone app based on its success with the Sports Illustrated Swimsuit issue earlier this year, which proved out security features, and Digimarc's ability to put video in the mix with print ads, per Lim. Such an ad for the FR-S, called "Video Test Drive," will run in the July 9 issue of SI.
The American Association of Advertising Agencies (4As) has issued an advisory bulletin to members with some tips for dealing with the chaos that lies ahead on the airwaves, due to the expected tsunami of political ads as the election nears. Two years ago during the fall election season, political ads accounted for up to 70% of the prime-time inventory of some TV stations. This year, with so-called “SuperPACs” raising unregulated amounts of political donations -- and with both presidential candidates foregoing federal funds for campaigning (and thus avoiding caps on their spending) -- estimates are there will be a record $9 billion in political ad spending. Thus, the clutter of political ads on the airwaves is only expected to get worse, making it more of a challenge than usual for brand advertisers to get their own messages on the tube during election season. High on the list of suggestions from the 4As: Advise clients to avoid news time periods to the extent possible. “While all dayparts will likely see political/issue advertising, it’s best for an advertiser to spread the wealth to lessen the impact of pre-emptions on any one daypart, especially news areas." Agencies should also advise clients to be more flexible in terms of spot placements, the trade association adds. Indeed, clients may not have a choice, given the fact that stations are required by law to give politicians priority during certain windows leading up to elections. Stations can pre-empt the ads of any traditional clients to make room for the politicians. Because they’re so prolific, it’s likely that consumer packaged goods ads will be especially vulnerable to preemption, while “time-sensitive accounts will need to pay a lot more to stay in the market. "Think ahead to allow greater flexibility with substitutions, upgrades and make goods,” the 4As states in its advisory. “A tiered list of options approved by a client upfront is a good start to allow a buyer space to navigate the marketplace.”
Bank of America is launching two advertising efforts, one for its Merrill Lynch Wealth Management product and the other for U.S. Trust, geared toward high net worth and ultra high net worth individuals and families. Both campaigns were created by Boston-based Hill Holliday. The Merrill Lynch effort, which draws from the brand’s iconic bull logo, includes two 30-second TV spots that will run through September. Titled “Belief” and “Goals,” the spots feature a bull running through fields and talk about the “Power of the Right Advisor” and the resources the firm can offer customers. The media buy focuses on sporting events, including the NBA Playoff Finals, the U.S. Open golf championship, Wimbledon and early-season NFL games. The campaign focuses on the commitment the brand’s advisors have toward helping clients achieve their goals, says Justine Metz, head of marketing for Bank of America Global Wealth and Investment Management. Additional Merrill Lynch Wealth Management advertising and signage can be heard and seen during the campaign on radio stations, Bank of America ATMs, and at the home parks of the Chicago Cubs, New York Yankees, Boston Red Sox, Los Angeles Dodgers and San Francisco Giants via the company's Major League Baseball sponsorships. The U.S. Trust television ads will air throughout the summer during premiere sporting events. The spots highlight how U.S. Trust's high-touch services go beyond just managing performance and risk to helping families build and maintain legacies across generations, "providing for those who came before you" while "helping prepare those who come next." "These ads not only deliver a great message in support of the U.S. Trust brand, but also demonstrate how our wealth management offerings reinforce the strength of the entire Bank of America brand," said Jean Fitzgerald, head of marketing for U.S. Trust, in a release. The spots feature images of life moments, while asking what it means to work with a company that understands a high net worth individual's specific financial needs and goals. In addition to the television advertising, signage featuring the U.S. Trust logo also will be featured prominently at several Major League Baseball stadiums across the country.
Boost Mobile is moving from being an amplifier of consumers’ complaints about their wireless providers to showing how it can solve those problems in a new marketing campaign for its prepaid wireless programs. The effort, which breaks June 4, introduces the character of the “4Genie,” a being (portrayed by actor and comedian Faizon Love) that hears consumer complaints about their phones and wireless service and then grants the solution via Boost’s unlimited plan with “shrinking payments” (through which monthly payments decrease over a period of time). “Everybody pretty much touts their 4G speed or their 4G coverage,” Peiti Feng, Boost’s director of brand strategy and marketing communications, tells Marketing Daily. “We want to differentiate from the competition.” In the first of three national television commercials, two women sit at a diner for lunch. One complains that her antiquated phone is too slow, but that 4G service is too expensive. In response, the 4Genie shows up and replaces her phone (via a command sounding like, “crack-a-lack-a-shing!”) with a new Android smartphone. “That’s how I do it,” he says. “People don’t really know what 4G stands for,” Feng says. “We decided we don’t need to educate them. We need to make sure they have more fun with the character and drive them to our Web site.” The company’s tagline, “Be Heard,” remains. The tagline was introduced in a campaign last year that highlighted consumers’ frustrations with their wireless networks. The campaign gave voice to complaints found on various social networking sites. “Boost has always been an ally in the wireless world. They like to listen to people and give them what they’re asking for,” says Matthew Elhardt, creative direct at Boost’s agency, 180 LA. “When Boost heard people were looking for a 4G plan that was more reasonable, they offered it.” In addition to the television campaign, Boost and its agency have developed a “Wish Fulfillment Center” Facebook App. The app, which will launch next week on Boost Mobile’s Faceobook page, lets consumers enter complaints about their own wireless service. The 4Genie responds to the complaints via one of several relevant video responses (many of which tout Android smartphones and the shrinking payments program). The television campaign will air on broadcast and cable networks. The campaign will also include out-of-home elements illustrating how Boost is making people’s 4G wishes come true.
As HSN looks to expand its traditional home shopping business further into digital platforms, CEO Mindy Grossman said Tuesday another redesign of at least one part of the company’s digital interface is coming. About 37% of HSN’s business is conducted via digital outlets, Grossman said at an investor event. The flagship HSN unit, which had $541.9 million in net sales in the first quarter, saw an 8% bump in digital sales. Part of HSN’s goal is to turn HSN.com into an “experiential” locale. Last year, realizing casual games are popular among a core female 30-to-50 year-old demographic, the company launched an HSN Arcade section with 25 games. That can lead to a second-screen experience -- it has a shop via remote control opportunity -- as people watch the network, which is also streamed online. An example could come via the HSN Live music initiative to sell CDs, where an artist conducts a live concert on the network. In the case of Lionel Richie, there was a live pre-show on Facebook. The HSN company also operates a Cornerstone business in the home and apparel segments, which has a large catalog business. Grossman said the aim is to increasingly use the print displays as a marketing vehicle for digital transactions. As far as a general portrayal of the state of the consumer, Grossman said: “I don’t think everyone is in this ‘oh, let’s go spend because things are hunky dory,’ (mode), but we’re not seeing the real retraction … that we saw when we were really seeing the pressured environment,” she said.
Netflix Chief Content Officer Ted Sarandos reiterated last week that his company does not believe having Nickelodeon programming on Netflix is contributing to the kids’ network’s declining ratings. At the same time, he said Netflix’s relationship with Viacom, which owns Nick, MTV and Comedy Central, is a strong one. On Nick, he said: “It’s hard to imagine there isn’t some substitution effect, but if you look at the total hours of viewing of that specific content, you would say that there is no support for a cause and effect of our viewing hours and their ratings.” Viacom CEO Philippe Dauman has said he doesn’t believe Netflix is having a notable negative impact. Speaking at an investor event, Sarandos added that Disney Channel content on Netflix is arguably more appealing to visitors and that network’s ratings are solid. “We get newer and a higher volume of content from the Disney Channel, [which] is enjoying great ratings,” he said. He suggested that kids’ programming goes in cycles and once Nick produces a new run of hits, ratings will increase -- even if Netflix viewing goes up. As for negotiating to offer Viacom content, Sarandos said the company has “been a great partner in every territory figuring out the right content in the right window for the right fee. We’re very artful about how we license our content from them. They’ve been very artful about what they offer to us and everyone has very different agendas.” Separately, as far as tablet viewing, Sarandos said it is “relatively small” among Netflix viewers, but the company has been working on upgrading the tablet interface.
Ever since Netflix announced that it was looking to acquire and develop original content, critics have dismissed the move as a weak attempt to try and become more like HBO. But Netflix Chief Content Officer Ted Sarandos believes HBO and other media companies with TV Everywhere offerings are actually trying to become more like the on-demand streaming video service. “Everyone keeps talking about whether or not Netflix is becoming more like HBO, and the truth is HBO is becoming more like Netflix,” Sarandos said last week, speaking at the Nomura 2nd Annual U.S. Media & Telecom Summit in New York. “Much more on-demand centric, much more serialized-centric. That’s the evolution of television, to become much more like Netflix.” Sarandos is, of course, referring to HBO’s HBO Go streaming online video service, which provides HBO subscribers with on-demand access to its movies and original series. Whereas HBO releases one new episode of its original series every week or every other week, Sarandos said that Netflix plans to launch every episode of upcoming original series like House of Cards all at once. “It’s really taking on-demand to its natural extreme, which is that for every 100,00 people that want to watch every night at 8 p.m., there’s a couple of thousand that want to watch the whole thing this weekend. And I want to be able to service them both," he said Sarandos added that House of Cards, the upcoming series from David Fincher that stars Kevin Spacey and Robin Wright, was a smart deal because the big names guarantee a sizable built-in viewer base “without spending a nickel in marketing.” He said the big risk is whether or not Fincher & co make a “lousy” show. “We bet that they’re going to make a great show.”
Outside Television named Cenergy as its first-ever advertising agency of record. First work breaks in June. Spending was not released.
One would think cable TV operators -- with all the other products they sell into households -- could almost care less about getting growth from adding more basic cable subscribers. But apparently that isn’t the case for Comcast. At an investor conference, Comcast Chairman/CEO Brian Roberts said Comcast is on a "mission" to giddy-up more basic video customers to its stables. How does that happen? Roberts said new product developments will lure in new customers (and even perhaps former customers). For the past several years, cable operators been telling Wall Street a slightly different story – that higher revenues from broadband or mobile phone businesses is good news for shareholders. When the story has turned to slowly slipping numbers of basic video subscribers, operators have pushed the angle that consumers have been increasingly paying more a month for their cable TV packages. Many operators are now getting anywhere from $120 to $150 a month. No doubt cable operators will continue that storyline by pushing those levels up and that storyline. Roberts’ intent to lure new customers comes in part from Comcast’s existing and obvious Xfinity programming mobile apps, interactive guides, bigger libraries of video-on-demand programming and movies, and newfangled DVR/set-top box units. But in the future, Comcast wants to expand its products somewhat outside the traditional media/communications area -- into home security and energy management systems. Where will these new customers come from? Still-unplugged TV consumers? Satellite or telco customers? Utility, gas or electrical? No doubt this kind of growth will be tough to come by. But it is honorable that Roberts believes he can lure new customers to Comcast’s cable systems – which have been humbled by much comic mockery and derision in popular culture through the years. (Roberts notes that customer service has made major improvements). All this will mean some creative marketing on Comcast’s part. Those ‘triple play package” marketing efforts of the recent past could easily evolve into quintuple -- or more – play packages. Copywriters will need to work on this, however. What about the total price? Someone must be secretly thinking north of $200 a month. Sounds like a bargain. When that occurs, I can then complain about home security and privacy broadband issues at the same time.