• by David Goetzl  @dgoetzl, March 14, 2008

Despite his acknowledgement of a "clearly" bumpy economy, CEO Leslie Moonves suggested Thursday that CBS Corp. is positioned to weather a downturn--in part with a three-tiered menu for advertisers.

Moonves said CBS assets offer the opportunity for wide national reach (the CBS network), local-market blanketing (outdoor, radio and TV stations) and individual targeting (new media). His pitch: an advertiser needn't go anywhere else to execute a plan.

The one-stop-shop approach was similar, yet different from what Mel Karmazin often touted as he oversaw CBS when it was part of Viacom. But instead of the national-local-individual tack, Karmazin plugged a cradle-to-grave option, where advertisers could reach all ages by using Nickelodeon through MTV and up to "60 Minutes."

Moonves said CBS's outdoor business is thriving--particularly with the growth in digital billboards that allows advertisers to change a message almost at will. Under a five-year deal, he said an auto company has taken control of digital billboards in five cities, and will program them on their own from a Detroit office--perhaps touting sports cars to male commuters in the AM and minivans to "soccer moms" in the afternoon.

"For an old TV guy, I have fallen in love with the outdoor business," said Moonves, who started at CBS in 1995, heading the entertainment operations at the network. He made his comments at a New York industry event on Thursday.

Regarding the economy, Moonves said its impact will mostly be felt by print outlets as well as TV and radio stations in smaller markets. CBS radio and TV stations are largely concentrated in major markets, following recent divestitures. Still, he said while CBS is not hurting any more than its competitive set, "we are being affected ... there's no question about it." He said spending in the auto category is down, but added that this is something all media companies are facing. Retail is also on the decline, but pharmaceuticals are up, he said.

Some 75% of CBS Corp.'s business is dependent on ad sales, and struggling businesses could look to trim marketing dollars if a downturn lingers.

Moonves said he is not convinced that content production is a completely recession-proof business, but suggested top-quality programming is a solid buffer. He said CBS is benefiting from a strong scatter market and robust sales for the upcoming NCAA basketball tournament.

Commenting on the CBS network, Moonves acknowledged that CBS would lose the season race for total viewers for the first time in many years, but attributed that partly to several months of repeats resulting from the writers' strike, as well as the continued strength of "American Idol" and the change in currency to commercial ratings. Fox, which looks to finish first, also had the Super Bowl.

Moonves also noted a rise in Internet ad revenues, citing more than $200 million last year. About 5% came from offering NCAA March Madness games on the Web; he said he expects revenues there to more than double this year.

He said CBS, with some $2 billion in cash, is on the hunt for sensible acquisitions--with prices that have come down versus a year ago when flush private-equity investors were snapping up properties at top prices.

"There will be other opportunities where our balance sheet will be a great benefit for us," he said, citing the broadcasting and new media arenas. Moonves expressed some interest in the Weather Channel.