A Wall Street firm noted that U.S. ad spending in the April-June period was below the first quarter, suggesting that the ad market had a bumpy spring. On Tuesday, Nomura reported a 4.6% bump across all sectors in the second quarter, below the 5.8% in the first three months of the year. Still, growth in the current quarter should easily crush last year, with the Olympics and political ads reaching Olympian levels -- at least with dollars spent. Nomura cited some slower ratings and a slower scatter market at broadcast and cable networks as contributing to the second-quarter slowdown. TV is one of two sectors with strong performances (helped by local TV) as Nomura broke the ad market down into three arenas: online advertising booming with double-digit growth; TV up in the mid-to-high single-digit range (with some political money helping) and “flat-to-down for everything else.” There has been some talk about the redoubtable telecommunications category possibly retrenching. Nomura said spending was down 3% in the first five months of 2012. Another historically strong category, pharmaceuticals, was down 4%. Google is Nomura’s top stock pick in the online space, with search and display advertising still grabbing share. It is also bullish on the struggling Facebook, where shares have dropped below $20, offering a price target of $31.50 along with a “buy” rating with its huge user numbers.
Just weeks before the new TV season is about to begin, broadcast and cable networks alike are looking to reverse some major declining programming trends -- including the all-important repeat programming.A report from ad agency RPA says repeats only average 43% of the original episodes' C3 ratings (commercial ratings plus three days of DVR playback) among 18-49 viewers. This is down 3% for the 2011-2012 season. Repeats ratings were only 48% of the original episode ratings for all viewers, down 4% from the season before.Broadcast networks are increasingly adding more repeat episodes to their prime-time lineups. Cable networks have long had a heavy diet of repeats of broadcast prime-time fare, as well as increasing their own originals.Some of this repeat performance may have contributed to overall problems by both broadcast and cable networks. The five English-language broadcast nets were down 6% in 18-49 viewers among C3 ratings, to a collective average of 12.5 million viewers. Ad-supported cable networks were down 2% to 21.3 million. RPA notes that the bulk of cable viewing comes from the top 25 networks.Looking at all viewers, both broadcast and cable were down 2% each in C3 -- broadcast to 32 million and cable to 52 million.According to RPA -- in looking at C3 ratings -- CBS handled the 2011-2012 year well, down just 1% among 18-49 viewers to an average 3 million viewers. Fox fared worse -- thanks to a steep drop from its big "American Idol." It was down 15% to a prime-time average of 3.4 million. Fox still leads all networks.NBC made big gains -- mostly due to rising ratings at "Sunday Night Football." It was up 6% to 2.8 million. ABC was down 6% to 2.5 million. Univision was down 4% to 1.8 million.Big cable networks also generally went lower in 18-49 viewers as well as overall viewers. ESPN was down 11% to 1.3 million among 18-49 viewers, for example; USA was down 7% to 962,000; and TNT was down 22% to 793,000.There were continued kid-viewer problems at Nickelodeon, which lost 16% of its average overall viewership to 2.3 million.On the other side of things, thanks to reruns from "The Big Bang Theory," TBS was 14% improved to 1 million in 18-49 viewers and 12% higher to 1.8 million in overall viewers. History, another network with good news, was up 1% with 726,000 18-49 viewers and up 6% to 1.7 million in overall average viewers.Broadcast network CW is now the 17th-ranked network -- broadcast or cable -- among all C3 average viewers. It had been 15th in the 2011-2012 season. CW was down 18% to 1.3 million viewers in the 2011-2012 season. Shutterstock
Connected TV advertising proponents will appreciate this bit of research: Connected TV consumers prefer ad-supported content to paid, ad-free content. A new survey pushes the idea that connected TVs will be a major opportunity for TV advertisers, per research done by Frank N. Magid Associates, commissioned by digital advertising company YuMe. Connected TVs are growing, and 30% of Internet-connected households have some form of connected TV, the survey notes. Some 60% prefer 15-second to 30-second ads over a monthly subscription or the pay-per-view model for short-form video. Forty-four percent feel the same way when it comes to streaming TV shows. Data also shows that nearly 90% of connected TV users notice ads on the digital platform, with the majority of pre-roll ads -- 57% -- noticed by users. Nearly 70% of connected TV users are likely to interact with a relevant ad, and nearly 20% purchased the product mentioned in the ad. Connected TV users streamed movies the most -- at 31%, with TV shows from the Internet at 29%. Next came some short-form content (26%), streamed a bit more frequently than they viewed TV shows on networks (24%). Mike Vorhaus, president of Magid Advisors at Frank N. Magid Associates, stated: "Advertisers and major brands will appreciate the rich findings for what is arguably the most explosive platform for video distribution and video advertising over the next several years." The survey came from 736 connected TV owners and users in May and June of 2012.
With three months to go until the U.S. presidential elections, political ad spending has already exceeded $500 million, as political candidates rush to target specific messages on tax cuts and healthcare initiatives, according to reports. But the message doesn't always reach the correct voters. Adiant CEO Ash Nashed believes his company's online ad network Adblade offers a solution to remove the guesswork from targeting political ads, saving parties thousands of dollars. The company has developed a dedicated service to help political marketers target messages to voters for local, state and national elections, reaching more than 200 million monthly unique users in the U.S. The technology receives and processes real-time feedback and refines messages on the fly. Similar to A/B testing for paid-search ads, the tool allows politicians to pick a specific geographic area to quickly test targeted messages before buying television spots. "Marketers can start at 9 a.m., throw four ads into the system and within an hour or two see which of the four resonates most," says Nashed. The ads serve up across a series of national and local news and political sites, such as Fox News and Democratic Underground. While the tool aims to support politicians, brands can also use it to reach consumers with a specific political preference, based on characteristics. The cost for TV political ads can range from $75 to $2,500 per 30-second spot, depending upon market and when the spot airs, per sources. If a candidate buys a local New York City Fox TV spot in late May running on "American Idol," it could cost between $7,000 and $10,000 or more, he said. Nashed figures that before spending $100,000 on a TV campaign, marketers can spend a few thousand and a day to determine where the message resonates best. "In this cycle, we have served more than 1 billion impressions for political campaigns, and delivered more than a half million visitors to Web sites," he said. Today, less than 15% of the 1 billion impressions are gleaned from mobile devices. Nashed attributes the low number to lack of demand from political advertisers.
ABC is making a major late-night shift with “Jimmy Kimmel Live" swapping the time slots with ABC News “Nightline" -- a move that looks to give alternatives for young-skewing late-night advertisers.Starting in January, the hour-long “Jimmy Kimmel Live” will get a better -- and perhaps more lucrative -- time slot, running at 11:35 p.m. with the half-hour "Nightline" shifting to 12:35 a.m.The move comes as a surprise of sorts. "Nightline" has been first in many key viewer areas among all late-night fare -- beating NBC's "The Tonight Show with Jay Leno" and CBS' "Late Show with David Letterman" -- shows that also start at 11:35 p.m.Now "Nightline," the longtime news magazine show, will expand five minutes for the new time slot. "Nightline" will also get an additional hour each Friday night, with a 9 p.m. edition of the show, beginning in March."It's kind of a curious move; I thought things were working," says Brad Adgate, senior vice president and corporate media research of media agency Horizon Media. He feels "Nightline" offers an alternative to entertainment programming of "Tonight" and "Late Show," while the 12:05 a.m. "Kimmel" start gave viewers another option in the middle of the NBC and CBS shows.ABC touts that "Kimmel" has been on the rise as the only late-night show to grow in total viewers year-to-year, climbing 3% for its best results in five years. Season-to-date has "Kimmel" at a Nielsen 1.72 million average total viewers.The late-night leader remains ABC's "Nightline" at 3.7 million season-to-date average viewers; NBC's "The Tonight Show with Jay Leno" is at 3.6 million; CBS' "Late Show with David Letterman", 2.9 million; and "Kimmel" at 1.7 million.By way of comparison, early-evening cable shows also compete well. Comedy Central's "The Daily Show" gets 1.5 million viewers and "The Colbert Report" pulls in 1.0 million, with TBS' "Conan" at 892,000 viewers. While these overall numbers are smaller, Adgate says the median age of these shows are much younger than the broadcast fare, with the median age of two Comedy Central shows in the 40s and "Conan" in the mid-30s.Adgate says Kimmel's median age right now is around 53.4, which is not much younger than "Nightline" at 57.3. Other late-night network entertainment shows' median ages are also in this range. Still, Adgate says about Kimmel: "He'll get a better shot. There is a perception that he'll get younger."News programming shows like "Nightline" pull in older viewers ages 25-54, which attract TV advertisers including pharmaceutical, financial and insurance. But late-night entertainment shows cater to young 18-34 viewers who can attract higher-paying advertisers, such as theatrical movies, games, and mobile phone/service providers.Anne Sweeney, co-chair of Disney Media Networks and president of Disney/ABC Television Group, stated: “Given the passionate fan base ‘Jimmy Kimmel Live’ has built over the past decade, and the show’s ratings and creative momentum this season, the time is right to make this move. There is the potential for far greater upside over the long term with this shift, given increased advertiser demand for competitive entertainment programming in the time slot.”
It’s been a heavenly summer for lobster lovers in Maine: A warm winter, better conservation efforts and the month-early arrival of the soft-shell season has spawned an almost unprecedented supply of the sweet and sumptuous crustaceans. But it’s also created economic hell for the lobster industry, which has seen prices fall to as little as $1.50 per pound, the lowest in decades, compared with about $4 at this time last year. Regional promotion efforts are in full swing. The Maine Lobster Council, which represents some 4,500 local lobster fishermen, is running a TV spot which shows a man presenting a woman with a bouquet of lobsters, and using them to make hearts in the sand. The governor of Maine has declared August Lobster Month, and there are plans to extend the promotion into fall. And in an effort to “turn lobsters into Lobsteraid,” a group of local inns have even launched a first-ever Lobsterpalooza, a weeklong festival in some of Maine’s prettiest fishing villages. But the glut raises serious concerns, and in the most recent development, the state’s Lobster Advisory Council, made up primarily of lobstermen working with a food industry consultant, voted unanimously to move forward with a proposal for a $3 million marketing effort. Currently, the promotional budget for Maine lobsters, sometimes called “bugs,” is $400,000. The next step, Patrice McCarron, executive director of the Maine Lobstermen’s Association, tells Marketing Daily, is to move the proposal before the state legislature. “It is all very much still a work in progress,” she says, “which would be funded by the lobstermen.” And lobster families are being pounded not just by lower prices, but also by higher costs for boat fuel. “It’s tricky,” she says. “They’ve made less money so it is difficult to invest in the future. But business is marginal, and people are worried about the medium and longer-term. People want to have a profitable fishing industry. And lobstermen are very concerned about what kind of industry they may be able to pass on to their children.” The issue has continued to generate interest, especially after Canadian lobsterman blockaded Maine lobsters. (A deal has now been reached, but besides economics, there’s historically bad blood, with each side proclaiming their lobsters taste better. The Maine Lobster Council is currently touting a blind taste test from the Wall Street Journal, in which the Maine Lobster trounced lobster from Nova Scotia’s Fourchu.) “I think there will be quite a bit of support for the campaign, but it will not be easy,” McCarron says. Historically, though, she points out that locals have rallied ’round the lobster community in tough times. For example, when financial markets crashed back in October 2008, which resulted both in disruptions in the supply change and a decrease in consumer demand, people banded together to support “a somewhat under-the-radar effort to eat lobster for Thanksgiving,” she says. But no one is expecting anything to improve quickly, and lobster prices are predicted to remain low through the year, which means the Maine Lobster brand will have to struggle to keep its high-end cache even at hot-dog like prices. If approved, McCarron says the campaign wouldn’t likely begin until 2014.
Reality TV has a lot to answer for. Its contributions to the ongoing debasement of popular culture are well-documented. Shows that celebrate our moral weaknesses and reward bad behavior with celebrity and riches are, to put it mildly, unfortunate. But there is a whole subgenre of reality TV that is actually educational and generally celebratory of the human spirit. These shows, which, oddly enough, generally appeal to men, explore nature, adventure, and exotic jobs. They’re not smutty, exploitative or condescending. You can watch them with both your kids and your parents. At the top of the heap is “Pawn Stars,” The History Channel’s mega-hit about a Las Vegas pawn shop that will wrap up its fifth season next week. This is a show that actually has mildly redeeming social value. One thing “Pawn Stars” is NOT about is the actual business of operating a pawnshop. The core pawn business, with its focus on lending money to people who have no other access to cash, is hardly in evidence on the show. What we have instead is a souped-up version of “Antiques Roadshow” in which people come to the store to cash out on their collectibles. The store in question -- The World Famous Gold and Silver Pawn Shop -- is owned by the show’s star Rick Harrison, a good-natured but hard-nosed entrepreneur. His co-stars are his dad (“The Old Man”), his son, (“Big Hoss”) and the surrogate son Chumlee, a slow-witted man-child who provides the comic relief. The producers cleverly play on the family dynamics of these men, with one generation always at odds with another, and everyone exasperated by the antics of Chumlee. But the real appeal of the series is not the Harrison family; it’s the buying and selling of historical curiosities. The show follows a rigid format: four or five sellers bring in a family treasure (e.g., a photo of Jesse James, a German dueling pistol, a letter from Andrew Jackson, a classic juke box), the Harrisons bring in an expert to appraise it, and then there‘s a negotiation. Since there is usually some suspense over what the item is actually worth, the show is surprisingly addictive. I don’t want to overstate the educational value of the show but you can actually learn a lot, in a number of areas, watching “Pawn Stars.” Of course since this is the History Channel, there’s an important historical element to the show. “Pawn Stars” does not deliver the kind of high-end historical sweep you get from Ken Burns, but over time the show does illuminate the cultural, technological and other historical trends that are covered in the broad historical surveys. As Rick Harrison says in the show’s introduction, each item has a story -- and every time the shop buys something, we get a brief mini-lecture on why it is an important artifact. Through this pointillistic approach, every purchase -- every autograph, vintage motorcycle, military weapon -- adds a little bit to our understanding of U.S. and European history. Further, “Pawn Stars” is the best show on television for demonstrating the basic principles of free enterprise capitalism. Over and over again Rick Harrison emphasizes that he will not buy an object if he doesn’t think he can make a profit, which seems to be in the 30% to 50% range. There are certain political circles where 30%-50% profits are considered “obscene,” but Rick is unapologetic about needing these margins to cover rent, salary and other costs of doing business. You can also learn a lot about negotiating by watching “Pawn Stars” -- lessons that can be applied to buying a house, setting a salary or selling a comic book collection: