- VS -


(OR 300 Reasons Why It Needs to CHANGE)
"Exhibit C" - (Ad Age and Media Post) TV Blues...
    Main Page | Ad Blues Blog | AOT Solutions | What's at Stake | MAM (Breaking Thru) Video | Contact Me |



  1. New Study has good and Bad News for Television Advertising Industry (Read Story) top
  3. Cable Upfront Moving Slowly (Read Story)
  4. Prognosis For TV's Upfront: Not Dead, Just Lounging, In Semi-retirement (IS THE UPFRONT DEAD?)(Read Story)
  5. Omnicom Bigwig Hasn't Forgotten Telly and Print (Read Story) top
  6. J&J To Upfront Market: Drop Dead (Read Story)
  8. McKinsey Study Predicts Continuing Decline in TV Selling Power (Cites 50% Drop in Viewers, 40% Hike in Prime-Time Ad Spend Over Last Decade) (Read Story) top
  9. TV Affiliates: Exclusivity is Dead (Read Story)
  10. TV Programming Reviews - Mostly Bad (Read Story)

Advertising Blues / TV BLUES / Exhibit D top


  1. NBC Cuts Jobs Due To Weak TV Ad Performance (Read Story)
  2. NBC Universal to Retool, 700 Positions Axed (Read Story)
  3. Advertisers Losing Faith in Traditional TV Advertising (Read Story)
  4. NBC Chief: Nielsen Will Be Real Winner in Commercial Ratings (Read Story)
  5. Fosters' Quits U.S. TV Ads, Moves Online (Read Story)
  6. Disney Earnings Spike Up, TV Ad Market Flat (Read Story)
  7. Washington Post Co. Sees Flat TV Revenues (Read Story)
  8. Buyers, Sellers Put Brakes On Nielsen's Commercial Ratings, Plan Meeting To Vet Issues (Read Story)
  9. Recycling The Past....(Read Story)
  10. Better ROI from YouTube Video than Super Bowl Spot (Read Story)


1. New Study has good and Bad News for Television Advertising Industry (9/26/2006) / Michael Bloxham


The good news for the advertising industry is that nearly a third of television commercial breaks are watched from start to finish during prime time, but the bad news is half are watched for 60 seconds or less, says a new study by Ball State University. top

The results are from "Remotely Interested: Exploring TV Viewers Advertising-Related Behaviors," a behavioral study that was unveiled Sept. 27 by Ball State's Center for Media Design (CMD) research staff in New York at the Forecast 2007 Conference: Media on Internet Speed.


"The debate to define a commercial minute is currently a major point of discussion for advertisers, media owners and agencies," said Mike Bloxham, CMD's director of insight and research. "This study has enabled us to provide insights to what really happens during an average person's prime-time viewing such as the percentage of commercial breaks we observed where attention was compromised through channel-changing, using another medium like a magazine, talking to someone else in the room or leaving the room altogether.

"Watching television is not as simple as it seems at face value," he said. "There are a number of choices that viewers can make that compound the complexity of 'watching television.' If advertisers and media owners want to keep up with these changes, they need to understand complex human behavior, which will only become more complex as we have more options available to us on screen." top

CMD researchers shadowed 49 Muncie and Indianapolis area residents in their homes as they watched three to four hours of prime-time television. The average observation was 3.7 hours, resulting in 179.2 observed viewing hours.

Researchers gathered data via touch-screen devices that allowed observers to record, in five-second increments, changes in channel, television content types, use of the electronic programming guide (EPG) and other behaviors.


The study found:

·The average ad break exposure was 2.2 minutes with 32.7 percent of the study's ad breaks watched in their entirety...

·Nearly half of the ad breaks were watched for one minute or less with 15.4 percent of commercial blocks viewed for 31 to 60 seconds before interruption; 12.1 percent lasted 16 to 30 seconds; 11.8 percent were between 6 to 10 seconds; and 9.1 percent lasted 5 seconds or less

·About 45 percent of advertising breaks were interrupted by scene-shifting behaviors, including channel changes (50.5 percent of scene shifts), EPG use (31 percent) and leaving the room (18.5 percent)

"Obviously it's good news for advertisers that nearly a third of the observed ad breaks were watched from start to finish," he said. "On the other hand, it is not so good where viewers are only watching part of a commercial break. If their attention has been lost in less than a minute, advertisers need that much more airtime to reach the kind of numbers they want often enough to stand a chance of getting their message through." top


More information about the study and other CMD research is available at www.bsu.edu/cmd/insightresearch

By Marc Ransford, Media Relations Manager




78% Say Effectiveness Is Diminishing; Clutter, DVRs to Blame / By Abbey Klaassen / Published: March 22, 2006 top


NEW YORK (AdAge.com) -- Major brand advertisers responsible for $20 billion in ad spending are losing confidence in the effectiveness of TV advertising. More than three out of four advertisers -- 78% to be exact -- said they have less confidence today in the effectiveness of TV advertising than they did two years ago, according to a survey released at today's Association of National Advertisers TV Ad Forum.  

More than three out of four advertisers -- 78% to be exact -- said they have less confidence today in the effectiveness of TV advertising than they did two years ago.


The study asked 133 national advertisers representing more than $20 billion in ad dollars about their attitudes toward TV advertising and how new technologies such as digital video recorders and video on demand will have on their TV ad budgets. top


Almost 70% of advertisers believe DVRs and VOD will reduce or destroy the effectiveness of traditional 30-second commercials. Instead, they are looking at alternatives such as branded entertainment within TV programs (61%), TV program sponsorships (55%), interactive advertising during TV programs (48%), online video ads (45%) and product placement (44%).


Web, search marketing

Additionally, 80% will spend more of their advertising budgets on Web advertising and 68% are looking into search engine marketing. top


Forrester VP Josh Bernoff addressed the advertisers at the forum, explaining that Forrester is very confident in pegging current DVR penetration at 10%. The biggest news, however, is that it is poised for a rapid growth spurt, thanks to cable and satellite operators' pushing the set top boxes and reducing the prices. By 2010, 43 million households -- 40% of the U.S. -- will have DVRs. top


He described agencies and advertisers as "hard-nosed" and "focused on data" and said that while the advance of DVRs doesn't spell the end of TV's 30-second spots, it will incite a change.


Little real change

Yet for all of advertisers' blustering talk about DVRs and the decreased efficacy of TV, there has been little real change. Even today, when Mr. Bernoff asked advertisers via an instant electronic polling system what they believed would be the most promising video advertising vehicle of the future, 22% thought it was regular TV, making it the second most popular choice. Interactive TV was the leader, with 31%, and in third place with 21% was Internet video. Cable VOD was fourth with 16%.


When instantly polled as to the biggest threat to TV, 48% of advertisers resoundingly called commercial clutter the top threat, followed by 17% who feared DVR ad skipping.


Prove viewers watch DVR ads

Other speakers at the forum echoed Mr. Bernoff's thoughts about the impact of DVRs. Kia Motors Chief Marketing Officer Ian Beavis, who famously struck network TV from Mitsubishi's media mix when he was leading marketing at the struggling auto brand, said he's yet to see proof that viewers watch time-shifted ads.


"Prove to us they really are watching them and we'll pay for it," he charged the TV network executives in attendance. top


Mr. Beavis also defended his decision to pull Mistubishi's TV advertising spending and blamed the automaker's subsequent sales problems on the product. He held up the Mazda 5 as an example of an auto marketer that achieved sales success without using TV in the media mix.


He urged advertisers to not just talk the talk, but walk the walk. "Don't get up and bitch and moan and then do the same thing you've always done," he said. "Do the right thing to do for that brand at that particular time."




3. Cable Upfront Moving Slowly (by David Goetzl, Friday, Jun 23, 2006)


THE SLOW-MOVING CABLE UPFRONT HAS at least one major hurdle to clear before it kicks into high gear: ABC. Until the broadcast market wraps--and ABC is the principal reason for the hold-up--sources said that cable is mostly engaged in a waiting game. top


That's not to say top-tier cable entities aren't making deals--MTV Networks, Turner, Discovery, and FX all have--but the going is slow. Some highly-rated networks are said to have completed 20 percent of their business, although a deal with only one major agency can account for the bulk of that. Middle- and lower-tier cable networks are said to be barely out of the starting gate.


Driving much of the early cable sales is the auto category--which represents a significant portion of business for leading cable networks, save those in the MTV family.


Both buyers and sellers have tossed about July 4 as a target to complete the deal-making, but many acknowledge that may be optimistic. Some say broadcast may not wrap until the holiday weekend, although that apparently depends on ABC, which is said to still be only half finished. CBS and Fox are believed to be close to completion, with NBC having done the majority of deals, but still with a ways to go.


Nonetheless, until broadcast closes, agencies may have difficulty turning their full attention to cable. top


The ebbing cable market mirrors broadcast, with a slower pace than previous years. In response, Merrill Lynch analyst Jessica Reif Cohen revised projections for the cable upfront downward this week from a 5 percent volume gain to 3 percent ($7.31 billion). The market grew 8 percent last year, according to Cohen.




4. Prognosis For TV's Upfront: Not Dead, Just Lounging, In Semi-retirement (by Wayne Friedman, Friday, Apr 28, 2006)


IS THE UPFRONT DEAD? SOME would believe it took a fatal shot this winter and spring with the coming new digital platforms.


But not according to John Muszynski, CEO of Starcom USA, who spoke at Media magazine's 2006 Outfront Conference yesterday. He believes there will always be an upfront--it's just that the upfront will look different. Possibly there'll be more upfront--perhaps one every day, he says. top


An upfront will always exist somewhat in its current form, he says, because they'll always be shows that are in high demand by marketers--"CSI," "Desperate Housewives," "Lost," and "American Idol."


This isn't all good news for networks. Where does this leave those middle-level performing shows, like CBS' "Out of Practice" or "How I Met Your Mother," ABC's "Supernanny," Fox's "Bones"--and just about any on NBC? In the near future, those shows could be relegated to whims of scatter matter. Marketers may be in no rush to buy them.


But here's the rub: Network ad sales chiefs are in the business of not just selling the top- rated shows, but all those middle-rated shows as well. That's what brings down a marketer's average prime-time CPM.


In the future, networks might replace that middle- level component with some in the digital platform space. Five years from now, the network upfront may look like this: a $6.5 billion dollar traditional TV business with an additional $3 billion going to networks' digital platform coffers. top


The change is occurring because money will be placed in multimedia extension projects --digital, branded entertainment, and otherwise--bought in mid-season, or whenever. These deals take a long time to negotiate and iron out, says Muszynski.


In addition, the scatter market may be a different advertising buying vehicle as well--one where marketers may buy those middle-rated shows closer to air date. For instance, Steve Farella, president/CEO of Targetcast, said at the Outfront conference that for the last several scatter markets, you could have mostly any network show you wanted at, or near, their upfront pricing.


On the same panel that Farella was speaking, non-TV executives from Screenvision (in-theater advertising), Alloy.com (a teen Internet site), National Geographic (magazine) and the Newspaper National Network, debated the possibilities of being part of an upfront market. top


All this is to say, don't carve the granite yet for the upfront's headstone. It's just going into semi-retirement. You'll see it on a chaise lounge, poolside, on the set of "CSI: Miami."




5.Omnicom Bigwig Hasn't Forgotten Telly and Print / September 21, 2006


The $40 billion man tells Paul McIntyre they're still the only way to give brands mass impact.


Work it until the point of sale … in-store and field marketing count, too, says Michael Birkin. top



AdvertisementTELEVISION and print media owners have won resounding support for bigger advertising allocations "for the foreseeable future" from the vice-chairman of the world's biggest advertising and marketing services conglomerate, the $US10 billion Omnicom Group.


With more than $US30 billion ($40 billion) of global advertising buying power in his back pocket, Michael Birkin says TV, newspapers and magazines will remain the most potent option for major companies to build their brands because the type of content needed to generate "mass impact" from the internet and other digital options is "still not there".


Birkin, who also serves as the group's Asia-Pacific chief executive operating from Tokyo, signalled a "continuing strengthening" of Omnicom's global spending in traditional media sectors on behalf of its blue chip advertising clients.


"It's a situation where I think TV and print are going to remain for the foreseeable future absolutely key in brand building and actually serve as the spark from which all sorts of creative ideas can come that you then push through different media," he told the Herald during a recent visit. top


"We still believe for genuine brand building for 90-95 per cent of brands that TV and print offer the best chances of getting the most eyeballs. It's quite difficult to go straight into new media without a print or TV campaign."


Omnicom, which is based in New York, owns international ad agencies such as DDB, TBWA and Clemenger/BBDO (47 per cent), along with media buyer OMD and hundreds of public relations, research, direct marketing, design and digital marketing firms around the world.


And although the booming digital media sector is serving up new revenues for Omnicom, Birkin says he has as much interest in "old world" marketing disciplines such as in-store and field marketing.


"At the end of the day it's not sexy and it's not what journalists want to write about but there's still massive growth for our traditional businesses," he says. top


"There's still an old-fashioned need to make sure we're helping our clients manage brand building [and also] the performance of their products and services up to the point of sale. It's a huge opportunity for us."


Birkin's sobering views on the internet and other digital platforms follow Omnicom's decision last year to merge its key stand-alone digital agencies with its big advertising networks.


Organic now resides within the BBDO group and Agency.com is part of TBWA, while DDB has long supported its Tribal unit. top


The mergers, Birkin says, were a recognition that digital media and marketing was a "pervasive requirement and logical" for ad agencies focused on brand building.


"I know I could be perceived as being a dinosaur in what I'm saying but other people can judge that. Of course new media is vital - of course there's much more time being spent there - but brands are really only emotional bonds between the brand owner and the consumer. They are pieces of intellectual property.


"My support for the mediums of TV and print is about the ability of those mediums to create an emotional bond from which you can then apply a lot of different messages on a much more targeted basis with a lot of incentives and different activity."


Birkin's support for traditional media comes as the marketing services company confirmed plans yesterday for an Australian launch of its rapidly expanding international media buying and planning network, PHD, within 12 months.


"All of our brands are growing very strongly at the moment in Australia and we are structurally well set," he says. "I don't see any change to our structures but we are going to be very active here."




6. J&J To Upfront Market: Drop Dead  / By Thom Forbes Monday, May 15, 2006


A major packaged goods marketer has decided to avoid the annual TV network media buying frenzy known as the upfront in a move that is representative of the shifting balance of power in the advertising game. The company, Johnson & Johnson, which markets popular brands such as Tylenol and Neutrogena, says it wants to buy TV time on its own schedule, not that of the TV networks, and will wait to purchase spots until late summer when it fits the company's business-planning process. "What we found is, if we can synchronize our business-planning cycle [with buying media time] it will benefit the brand and that is what this is all about," says Kim Kadlec, Johnson & Johnson's chief media officer. The move is indicative in a shift of power from media sellers to advertisers, who have so many choices of where to spend their ad dollars they no longer have to rely on network television as much as in years past. In today's fast-growing digital communications age, marketers are reaching consumers in new ways by advertising on the Internet, on cell phones and on iPods. "It's a supply-and-demand issue," says Bill McOwen, executive vice president, director of broadcast at Havas' MPG. "With the maturation of cable and the digital realm, there are absolutely more choices today."  




At the ANA TV Forum, More Than Half Dissatisfied With Process / By Claire Atkinson  / Published: March 22, 2006 top


NEW YORK (AdAge.com) -- The Association of National Advertisers' TV Ad Forum this morning revealed some lingering sourness over the upfront buying process. More than half the estimated 350 attendees, from major marketing firms and agencies, said they weren't happy with the upfront, where billions of ad dollars are committed to TV in advance of the fall season.  

Ian Beavis: "Don't get up and bitch and moan and then do the same thing you've always done. Do the right thing to do for that brand at that particular time."

Responding to an instant electronic poll -- "How satisfied are you with the upfront?" -- 36% said they were "somewhat dissatisfied" and 20% were "very dissatisfied." Only 10% said they were "very satisfied"; 23% were "somewhat satisfied."


Ian Beavis

The poll was orchestrated by Ian Beavis, VP-marketing at Kia Motors America, who famously yanked his network TV spending as marketing chief at Mitsubishi Motors North America in favor of other media. Mr. Beavis also asked attendees whether they would prefer the upfront to be conducted on a calendar year rather than in May, when the broadcast networks decide their shows for the TV season. A whopping 83% said opted for the calendar year, while 10% said no.


Despite the negative sentiment, it's unlikely advertisers will do much to change the game. When given the opportunity to bring up their feelings at a meeting convened by the ANA in 2004, advertisers opted to stick with the status quo and the Network Upfront Discussion Group (NUDG) was disbanded.


Mr. Beavis, as part of his presentation, defended his decision to pull Mitsubishi's TV ad spending and blamed the automaker's subsequent sales problems on the product. He held up the Mazda 5 as an example of an auto marketer that achieved sales success without using TV in the media mix.


He urged advertisers to not just talk the talk, but walk the walk. "Don't get up and bitch and moan and then do the same thing you've always done," he said. "Do the right thing to do for that brand at that particular time."


One positive came out of the polls for broadcasters. When asked if other media such as online and cinema should be included in the upfront, the majority of respondents, 59%, said no. Only 37% wanted to hold negotiations with such alternative media while their TV talks were taking place. top


Spending plans

A poll on upfront spending plans, conducted by Pfizer's Scott Grenz, senior director of media, U.S. and Canada, advertising services, revealed that 32% of respondents were planning to spend less on TV at this year's upfront, while 31% said they planned to spend more; 32% said they planned to spend the same amount.


Mr. Grenz's upfront spending poll kicked off the one-day event, held in New York at the Grand Hyatt Hotel. The full day of panels, titled "Life Beyond the :30," also saw some participants extolling their partnerships with broadcast networks. Perianne Grignon, VP-media services, Sears, said that after an episode of ABC's "Extreme Makeover: Home Edition," 29% of viewers surveyed expressed a greater likelihood of visiting a Sears store. "Sears' sponsorship of Bravo's 'Top Chef' is also paying off," she added. Branded entertainment vehicles and product integration shows no sign of waning in popularity among marketers as a response to a more widespread consumer usage of digital video recorders, which in theory allow them to skip commercials on playback. top


Defending traditional broadcasters

CBS' Exec VP-Chief Research Officer David Poltrack defended traditional broadcasters and called for a reality check when it comes to emerging digital media. "There have been 1.8 million iPods sold since October and 12 million downloads of programming such as 'Lost' and 'Desperate Housewives.' To put this in perspective, we introduced a new TV program, 'The Unit,' and 20 million people watched that program."


Mr. Poltrack urged those in attendance to spend their time thinking about the ad environment of today rather than the future. "How much time are you putting into changes happening in 2010? How much time are you dedicating to opportunities this fall?" The question was well-timed. Later in the morning, ANA President Bob Liodice said that the average tenure of a chief marketing officer was only 23 months. top


CBS conducts research on how well its own promotions work to get their own proof of the medium's effectiveness. Commenting on the debate over commercial ratings -- which some advertisers would prefer to use as the barometer of their pay rates vs. program minutes -- Mr. Poltrack said that commercial ratings are inherently unstable and cited research conducted by Magna Global's Exec VP-Audience Analysis Steve Sternberg that backed up those findings.


Streaming video

As for TV networks' Internet rivals, Mr. Poltrack said Web giants such as Google were engaged in direct marketing and not advertising: "There are limitations on search. It can't continue to grow." He said streaming video on the Internet was the big growth engine and that would most likely be fuelled by broadcast network programming. CBS' coverage online of this month's NCAA basketball tournament had attracted 14 million downloads, 4 million unique users and 268,000 live streams, which had benefited its advertisers, such as Courtyard by Marriott and Dell. /  http://adage.com/mediaworks/article?article_id=107966



8. McKinsey Study Predicts Continuing Decline in TV Selling Power

Cites 50% Drop in Viewers, 40% Hike in Prime-Time Ad Spend Over Last Decade (By Abbey Klaassen / August 06, 2006)


NEW YORK (AdAge.com) -- A study is about to give Madison Avenue a fresh pummeling: McKinsey & Co. is telling a host of major marketers that by 2010, traditional TV advertising will be one-third as effective as it was in 1990. top


Shocking statistic

That shocking statistic, delivered to the company's Fortune 100 clients in a report on media proliferation, assumes a 15% decrease in buying power driving by cost-per-thousand rate increases; a 23% decline in ads viewed due to switching off; a 9% loss of attention to ads due to increased multitasking and a 37% decrease in message impact due to saturation.


"You've also got pronounced changes in consumer behavior while they're consuming media," said Tom French, director at McKinsey. "And ad spending is decreasingly reflecting consumer behavior." top


According to the report, real ad spending on prime-time broadcast TV has increased over last decade by about 40% even as viewers have dropped almost 50%. Paying more for less translates into a much higher cost-per-viewer-reached -- a trend also true in radio and print.


Teens turn from TV

Thank a combination of older technologies such as cable, PC computers, cellphones, CD players, VCRs, game consoles and the internet, along with more recent ones -- PDAs, broadband Internet, digital cable, home wireless networks, MP3 players, DVRs and VOD-- for those changes. And teens foretell an even more radical shift in future media consumption, the report points out: They spend less than half as much time watching TV as typical adults do. Teens also spend 600% more time online, surfing the web.


According to Forrester Research's most recent North American Consumer Technology Adoption Study, people ages 18 to 26 spend more time online than watching TV and are adopting new technology faster than any other generation. Because of that, they tend to be more receptive to blog, podcast and mobile-web ads.


That leads one to wonder whether consumer marketing mixes should change to reflect consumer behavior. top



The answer is not quite -- yet, at least. The Catch-22 is a "chaos scenario" that smart marketers have read about in these pages: a dearth of online-ad supply and the web's generally fragmented nature will keep TV in booming business for the next several years.


"Should everybody shift 30% of their dollars to the web?" asked Amy Guggenheim Shenkan, senior practice knowledge specialist in McKinsey's San Francisco office. "No. There wouldn't be room today if everybody wanted to shift online. Last year [online media] was $12.5 billion, by end of 2007 digital advertising will be $18 to $25 billion. ... So we're seeing a lot of growth, but if you want to match up share of attention and share of dollars it couldn't happen for that reason." The TV ad industry is a $68 billion one.


So what's a marketer to do?


Mr. French said it's no longer good enough for an advertiser to take standard reach metrics at face value. He advises them to consider evaluating media on an "adjusted reach" basis.


Not adjusting reach numbers

"What we don't find people doing is adjusting those reach numbers for people who are actually tuned in," Mr. French said. "Not just watching but actually paying attention."


He also suggests there's a great role for chief marketing officers to play within their organizations, where they have influence over all customer-interaction channels -- call centers, sales forces, retail partners -- and can use those to supplement a decreasingly effective media channel.


Consider the enterprise telecom company (not named by McKinsey). Some 44% of the purchasing decision was influenced by interaction with sales, topbuilding/installation and service/maintenance teams.


"We see many, many leading organizations across industries realizing they need to systematically improve their commercial effectiveness," Mr. French said. "And the logical candidate for driving that is the CMO."


Evolve marketing model

Emerging as some of the best examples are industries in which marketing has long been relegated to a back-seat role but is now becoming a major force in the front office -- major broad-based industrial conglomerates, financial services and telecom. In contrast, the companies people used to benchmark what marketing excellence is -- major package-goods players, for example -- are realizing they've got to dramatically evolve their marketing model.


"CMOs have to step up to a larger role and question a host of historical assumptions of how marketing works," Mr. French said. "They have to continue to build rich, robust and proprietary customer insights, but they have to do it from a bunch more sources." top



Xxxxxxx /  http://adage.com/article?article_id=110899


9. McKinsey Study Predicts Continuing Decline in TV Selling Power

Cites 50% Drop in Viewers, 40% Hike in Prime-Time Ad Spend Over Last Decade


NEW YORK (AdAge.com) -- A study is about to give Madison Avenue a fresh pummeling: McKinsey & Co. is telling a host of major marketers that by 2010, traditional TV advertising will be only one-third as effective as it was in 1990. According to the report, real ad spending on prime-time broadcast TV has increased over last decade by about 40% even as viewers have dropped almost 50%. Paying more for less translates into a much higher cost-per-viewer-reached.




10. TV Affils: Exclusivity is Dead (By Michele Greppi / April 17, 2006)


The land rush for new ways to parlay network programming into new network revenue streams has done to affiliates' exclusivity rights what the Ice Age did to dinosaurs.


Many affiliates say any notion that they can leverage networks into preserving vestiges of exclusivity is unrealistic. top


Ask stations affiliated with Disney's ABC, which last year became the first network to make prime-time programming assets available on-demand to a new partner, Apple's iTunes. ABC didn't tell its local stations at the time it was reviewing its vows of exclusivity.


ABC's announcement last week that it is making ad-supported current episodes of "Lost," "Desperate Housewives," "Commander in Chief" and the entire season of "Alias" available for streaming on ABC.com in May and June didn't catch affiliates by surprise. It did, however, catch them in mid-conversation about how the network might compensate the affiliates for the further loss of exclusivity.


Fox Broadcasting has just agreed to cut its affiliates in on any revenues that result from on-demand extensions of its programming. And CBS appears poised to make a similar arrangement with affiliates.


But stations' participation in the profits from prime-time shows being available on-demand does not change the undeniable fact that by making shows available via any distribution means other than affiliates, the local stations lose the clout that comes with being able to offer viewers and advertisers something no one else can.


NBC Enters Repurposing top


Limits on the networks' rights to repurpose prime-time programming or distribute shows outside their traditional primary prime-time runs have largely been negotiated as part of sports cost-sharing agreements. The local stations agreed to help defray the cost of the networks' major sports contracts in return for the networks agreeing that the majority of its programming would remain exclusive to affiliates in the programs' first runs. top


NBC, the only one of the Big 4 broadcast networks that has never had a written repurposing agreement with its affiliates, announced in April 2000 that it would repurpose "NBC Nightly News" after its network broadcast on Pax stations. But NBC abandoned the plan after the affiliates howled that such a move would siphon viewers away from "Nightly" on their stations.


Now "Nightly News" and "Meet the Press With Tim Russert" are available on-demand on MSNBC.com immediately after their West Coast network broadcasts.


NBC recently opened new territory when it prepurposed midseason drama "Conviction's" first episode for free on iTunes before the Dick Wolf show premiered on NBC.


CBS put a spin on prepurposing with its deal with Yahoo to create a "60 Minutes" microsite starting next fall that will offer content related to stories on the newsmagazine.

Most news coverage of the "60 Minutes" deal said the content would go up on the Web after the newsmagazine's network broadcasts, but that was based on presumption. What the network didn't announce was that the content goes up on the Yahoo site before the conclusion of the East Coast broadcast of "60 Minutes" and before the magazine is broadcast in later time zones.


Whetting Appetites


CBS argues that the content does not duplicate the "60 Minutes" stories. In a preview two weeks ago "60 Minutes" broadcast an extended interview with Tiger Woods. Yahoo offered myriad short clips: Mr. Woods bouncing the golf ball off his club and hitting balls at a cameraman (both featured in the interview), along with career highlights. The clips started with a plug for Buick featuring Tiger Woods. top


CBS regards the Yahoo deal as a way to whet viewers' (especially young viewers') appetite for the "60 Minutes" broadcast, not as a substitute for it.


But many affiliates see it as a disturbing twist that sets a precedent they hope the CBS affiliates advisory board will protest.


As for ABC, the network maintains that after testing the popularity of its ABC.com broadband offerings, which include ads that viewers cannot skip, it believes it will have a better sense of the format's potential when it talks to affiliates.


ABC affiliates suggested that in addition to revenue sharing, other promising options might include offering links to the broadband offerings on the Web sites of the local stations, which then might be able to attach locally sold ads.


"The key here is whether or not the networks are really going to demonstrate they value what these stations do in exposure of network programming," a station group executive said. / http://www.tvweek.com/news.cms?newsId=9784



1. NBC Cuts Jobs Due To Weak TV Ad Performance (by Wayne Friedman, Friday, Oct 20, 2006) top


TWO YEARS AFTER NBC UNIVERSAL Television took an $800 million ad revenue drop in the upfront, it will make $800 million in cuts from staff reductions and production savings. Is there a correlation between the advertising--especially in today's environment--and the layoffs? Absolutely.


"It is a response to current advertising conditions," says Mark R. Fratrik, vice president of Chantilly, Va-based BIA Financial. "With J&J not being in the upfront, with automotive cutting back, it has been a long time in NBC's thinking."


Analysts say NBC is concerned about being in fourth place among all the networks. But the real issues are the increasingly troubling equations of production costs versus advertising sales, says Fratrik, especially when high-priced dramas yield mediocre ratings.


For example, published reports claim that rookie NBC show that "Heroes" costs a whopping $2.7 million an episode. The good news is that "Heroes" is doing well, with almost a 6.0 rating in adults 18-49--the highest among all new network shows. But shows like "Studio 60" cost about the same as "Heroes," yet deliver half the 18-49 rating that "Heroes" does.


During the upfront, according to Ad Age, "Heroes" grabbed $171,000 for a 30-second spot; "Studio 60" took in $210,000. The price tag for "Heroes" will no doubt rise--perhaps in the $200,000 to $240,000 range. top


With 20 national spots per hour, at $200,000, that would reap a gross $4 million per episode. Of course, NBC also has re-run availabilities, as well as consumer pay-per-play fees and ad revenues from its many digital platforms.


In the old days, this formula would come out somewhat differently. A network could negotiate a low license fee (versus the production costs) from the producer. But the math doesn't really work any more. "Heroes" is produced by NBC Universal Television Studio, while "Studio 60," the exception to the rule, is produced by Warner Bros. Television.


Which still leaves scores of other network shows out of the money loop. That's why Jeff Zucker, chief executive of NBC Universal Television Group, says there will be fewer scripted shows in the future.


Fratrik surmises that Zucker's threat is targeted at the weaker 8 p.m. hour that kicks off the prime-time schedule. Networks have mostly backed away from traditional half-hour sitcoms. So Fratrik expects to see more reality shows, game shows and new shows from NBC during that hour. top


NBC stations are already on the right track, say analysts. Its O&O stations have been praised for their ability to sell more in the digital space than most other stations groups. Analysts believe NBC stations are now getting 15% or more of their ad revenues from the digital space. In the broader picture, NBC expects to generate $1 billion in digital revenues from subscription program fees and ad revenues by the year 2009.


"The reality of network television is that the model doesn't work as well as it used to," says Fratrik. "They are not going back." top




2. NBC Universal to Retool, 700 Positions Axed

Money-Saving Moves Include Cutting Programming, News Costs

By Claire Atkinson / Published: October 19, 2006


NEW YORK (AdAge.com) -- NBC Universal plans to reduce overhead by $750 million by the end of 2008 and intends to axe 700 positions, or about 5% of its global work force. The cuts are part of a major corporate reorganization dubbed "NBCU 2.0," and will be most notably felt by the news operations and the broadcast network, which will no longer program expensive dramas or comedies at 8 p.m.


The aim of the cost-cutting initiative is to direct more of the company's resources toward high-growth areas such as digital operations, which are expected to reel in $200 million by the end of the year, and Hispanic media. top


Cost of scripted dramas

NBC Universal TV Group CEO Jeff Zucker told the Wall Street Journal today that advertiser interest had not been high enough to justify the continued level of spending by the network to create scripted shows. Advertising Age's pricing chart illustrates NBC's problem. The Tuesday 8 p.m. drama "Friday Night Lights" reportedly costs the network more than $2 million an episode and commands $116,000 for a 30-second ad, while the game show "Deal or No Deal" costs the network half as much to produce but brings in $141,000 per spot.


"Advertising investment is a reflection of audience interest, so if NBC is able to aggregate an audience to the same degree with 'Deal or No Deal' or reality shows, it needn't negatively affect the network," said John Rash, senior VP-director of media negotiations at Campbell Mithun, Minneapolis. "But if they yield any scripted fare and are unable to begin their night with strong lead-ins at 8 p.m., it could affect subsequent hours."


Steve Sternberg, exec VP-audience analysis, Magna Global thinks concentrating on game shows and reality shows in that hour could work for NBC. "Here is why that could be positive. We've done research with Nielsen data and 80% of homes have one set during prime time. Families want to watch TV together and too often they can't because there's a lot of kids around. Reality shows have become the new family programming." He cited research that shows 10 of the top 15 shows popular with children, teens and adults are reality series.


No longer commands a premium

NBC has faced a tough ad climate this year and struggled in the upfront ad sales period, despite broad support for its new programming. The network has historically commanded a premium for the 18- to 49-year-old demographic, but as its ratings position has eroded, it has had to roll back pricing. NBC brought in around $1.9 billion in ad commitments during this year's upfront market, of which advertisers committed around $500 million to the network's National Football League coverage. (Sports programming isn't typically included in the upfront entertainment tallies.) In 2004, NBC's upfront netted $2.9 billion.


NBC Universal also had a tough third quarter, reporting a profit drop of 10% from the same period last year, reflecting the difficult ad-sales climate.


Part of the "NBCU 2.0" plan also involves NBC Universal looking to develop "alternative advertising metrics." The network was the first to have negotiated upfront deals using agreed upon engagement metrics rather than relying simply on ratings performance. top


The cost cutting follows a period of heavy investment across NBC Universal. In May, NBC Universal agreed to pay around $600 million for web community iVillage. In 2005, NBC Universal agreed to pay the NFL $600 million annually for its "Sunday Night Football" franchise. The network also pays around $600 million for the Olympic Games, which are likely to be expensive to cover from Beijing in 2008.


Thriving news operation, but ...

While NBC's news operation thrives, with the "Today" morning show and "NBC Evening News With Brian Williams" retaining their respective No. 1 positions, NBC's cost-saving plan centers on the news division. MSNBC's headquarters in Secaucus, N.J., will be shuttered and employees will move to NBC headquarters at 30 Rockefeller Center and to CNBC's offices in Englewood, N.J. The company is also beginning reviews at NBC News bureaus in the U.S. and overseas. Part of NBC Universal's plan is to reinvest savings in other areas. For instance, CNBC.com brings visitors to a dull-looking msn.money.com website, so there are plans to convert CNBC.com to a paid subscription service, which could be unveiled by the end of the year.


The extent of the realignment looks to leave behind the traditional network model -- which relies on aggregating big audiences in order to charge high ad rates -- in favor of exploiting NBC content across numerous new-media platforms.


According to a company statement released this morning, "The TV Group will maximize its ability to generate revenues across all platforms -- including new digital distribution outlets -- through a business strategy that reduces NBCU's dependence on traditional content distribution methods and advertising models. This includes bringing content to consumers sooner on a variety of platforms."


Mr. Zucker will conduct a town hall meeting with staff today to detail the changes. top




3. Advertisers Losing Faith in Traditional TV Advertising / By Thom Forbes Thursday, Mar 23, 2006


Ad AgeIs the 30-second spot dead? No, but it's become the underdog in the eyes of advertisers lately, thanks to TiVo and DVRs. According to a study released this week at the Association of National Advertisers TV Ad Forum, close to 70 percent of advertisers believe that TiVo and DVRs will alter the effectiveness of 30-second ads. This shadow of doubt has caused marketers to look at alternative forms of TV advertising such as branded entertainment deals, product placement, and TV program sponsorships. In addition, 80 percent of marketers plan on redirecting more ad dollars to online ad spending and 68 percent are allocating more money to search engine marketing.




4. NBC Chief: Nielsen Will Be Real Winner in Commercial Ratings

Ad Age Video: Bob Wright Discusses Broadcast Landscape at Advertising Week By Claire Atkinson  / September 25, 2006 top


NEW YORK (AdAge.com) -- NBC Universal Chairman Bob Wright worries about the additional burden commercial ratings are going to place on broadcast networks when it comes to content over which they have no creative control. ...




5. Fosters' Quits U.S. TV Ads, Moves Online / The Wall Street Journal


Most consumer-product marketers have shifted some of their ad dollars from traditional media to the Internet. Foster's beer has taken a more dramatic step. The Australian beer's U.S. owner, SABMiller, has decided to stop advertising on television and shift its entire American ad budget to the Net. Although the brand's TV spending is relatively small--last year Foster's spent $5 million on TV ads, according to TNS Media Intelligence--the move is significant. It is representative of a trend among certain target groups--in this case young men--away from TV viewing and toward the Web. If the initial Web ads aren't effective, Foster's will tweak them, but it won't go back to TV advertising, says Gary Cattell, Foster's brand director. SABMiller's decision won't affect ad campaigns outside the U.S. because the company doesn't own the brand anywhere else in the world. The new Foster's campaign has two elements. Ads on Heavy.com promote a competition to win a date in Las Vegas with one of 10 Australian models. Separately, Ogilvy & Mather will run a "viral" campaign, aimed at sparking word-of-mouth buzz about Foster's, by posting videos on Heavy.com and other Web sites. The videos will look homemade to disguise the fact that they're commercials. - Read the whole story...




6. Disney Earnings Spike Up, TV Ad Market Flat  / by Wayne Friedman, Thursday, Aug 10, 2006 top


ALTHOUGH DISNEY POSTED HEALTHY FISCAL third-quarter earnings growth--a 39 percent net-income improvement--its media networks provided no help. The culprit? Blame the soft ad market.


Disney felt the effects of weaker-than-expected ad growth for its broadcasting and cable network businesses. And the news isn't better for the near-term. Looking forward, Walt Disney Co.'s CEO Robert Iger said fourth-quarter TV ad sales are flat so far, while ad sales at Disney's radio group were down "mid-single digits."


For its media networks operations, Disney's operating income sank 28 percent to $181 million--with revenues only 8 percent higher to $1.6 billon, versus comparable time periods a year ago. These numbers were slightly worse than analysts expected. Jessica Reif Cohen, media analyst at Merrill Lynch, believed operating income would decline by only 9 percent and that revenue would grow 10 percent.


It wasn't only lower ad sales--analysts pointed fingers at ABC, which spent more money than usual on pilots. ABC commissioned 15 pilots and gained 10 shows for the upcoming season, more than any of the big four networks. top


Disney has also been hurt as a result of the sagging Disney Mobile business. In particular, its new Mobile ESPN business has been slow to take off. Revenue from Disney's cable networks--primarily ESPN--came in lower than expected, says Cohen. However, ESPN did improve profit margins.


Overall, Disney's cable networks witnessed a 12 percent gain in revenue to $2.2 billion, and operating income climbed 15 percent to $969 million. But much of this gain was due to a change in accounting procedures concerning programming revenues at ESPN. top


Disney's big financial results--which gave it 12 percent growth to $8.6 billion in revenue, and 39 percent growth in net income to $1.13 billion--came mostly from box-office revenue of theatrical releases "Cars" and DVD sales of "The Chronicles of Narnia." The $100 million movie revenue from "Cars" and the sale of 18 million DVDs of "Narnia" helped push the studio division revenues up 17 percent to $1.71 billion.


Disney's big summer hit "Pirates of the Caribbean: Dead Man's Chest" is expected to be a major theatrical player when business is completed, estimated to gross nearly $800 million in worldwide box-office sales. Still, higher-than-average marketing costs will dampen overall financial results, according to Iger. One analyst estimated that Disney spent about $100 million in marketing the film.




7. Washington Post Co. Sees Flat TV Revenues  / by David Goetzl, Monday, Aug 7, 2006


THE LOCAL STATION BUSINESS CONTINUES to take its lumps on the ad-revenue front. The Washington Post Co.--owner of six TV stations--saw revenues for the second quarter, as well as the first half of the year, decline 1 percent. That figure doesn't factor in the usual even-year bump from Olympic and political ads.


Second-quarter revenues declined from $88.4 million in 2005 to $87.7 million this year, excluding the even-year help. Even counting the $1.3 million in political ad spending, the increase was only 1 percent to $89 million. top


For the first half of the year, revenues fell 1 percent from $167.7 million to $166.4 million--without the even-year bump. With $6.3 million raked in from the Winter Olympics for its NBC affiliates in Detroit and Houston and $2.2 million in political spots added in, revenue rose 4 percent to $174.9 million.


Credit Suisse issued a report saying the station group's performance has been "dragged down" by ratings struggles at NBC and "a slow start to the political year." The firm said the ABC stations in Miami and San Antonio "performed well in the quarter, but their contribution is smaller." top


Political advertising should help the Post stations this year as races in Florida heat up. The beneficiaries should be its stations in Miami, Orlando and Jacksonville. 






8. Buyers, Sellers Put Brakes On Nielsen's Commercial Ratings, Plan Meeting To Vet Issues

by Joe Mandese, Friday, Aug 4, 2006 top


IN THE WEEKS SINCE NIELSEN revealed plans to begin providing ratings for TV advertising minutes significant problems have emerged in the way those ratings are processed. Now a coalition of influential buyers and sellers wants to put the brakes on that process before it gets out of hand and is planning a meeting to rethink how the so-called commercial ratings should be manufactured. The meeting, which is expected to take place next month, before the launch of the new TV season, and before Nielsen begins doling out the new ratings, will likely lead to a new round of discussions on what data should - and should not - go into the commercial ratings, how they should be processed, disseminated and used in TV advertising deals. "I don't think there's anyone out there who thinks that Nielsen has a full grip on this," acknowledges Alan Wurtzel, president of research and media development at NBC, who is one of the executives trying to organize the summit. We need to find a forum in which the industry can get together and start to deal with some of these details."

The effort, which is also being organized on the agency side by Rino Scanzoni, chief investment officer at Mediaedge:cia, is expected to take place in the next four to six weeks and will likely have all sides of the business represented, including advertisers, agencies, broadcast and cable networks, as well as Nielsen executives.


"In order to make this viable, the whole industry has to be involved - both buyers and sellers," says Lyle Schwartz vice president-director of research and marketplace analysis at Mediaedge:cia, who along with Scanzoni was a major catalyst prompting Nielsen's initial plan to begin releasing commercial minute ratings beginning this fall.


But in the weeks that followed a surprise announcement by the major broadcast networks that they had achieved a consensus on how those ratings should be processed, other players in the industry have been scrambling to make sense of the plan, and some have found it lacking, especially big ad agencies and major cable networks.


One of the chief problems surrounding the new ratings is that the commercial ratings are processed by using a relatively shaky system for identifying when the commercial minutes actually air. That system, Nielsen's Monitor-Plus service, was designed as a competitive advertising monitory system, which apparently does not have the same level of detail or rigor as the systems Nielsen uses to compile and process TV ratings. top


The Monitor-Plus data, for example, currently cannot identify local cable advertising units, and also does not even monitor a number of major cable TV networks at all. The data is also considered unstable by some major cable networks, one of which recently ran several tests of commercial minute ratings using the system, which failed to identify the correct advertising units.


Without an accurate accounting of when the commercial minute run, critics say it would be impossible for Nielsen to accurately produce TV ratings that could be used as the basis of a marketplace currency for negotiating and guaranteeing advertising deals.


Other significant technical issues have been identified, but another major stumbling block to the plan is that the Monitor-Plus data has not been audited and is not accredited by the Media Rating Council, the organization that validates audience measurement currencies for the advertising and media industries.


Mediaedge:cia's Scwhartz says the goal of the summit is to identify the problems and pitfalls in the new commercial minutes ratings before they become established as a new market currency, and to come up with a consensus for a plan to produce them accurately.


Conceivably, he says, that might mean using an alternate source for the commercial minutes data, such as Nielsen rival TNS Media Intelligence, though at least one network insider believes that is unlikely to occur.


"Nielsen probably has the ability to fix those problems and refine the data to give it the kind of granularity we would need to process commercial ratings," says the executive. "They just haven't been asked to do it before." top

Joe Mandese is Editor of MediaPost






9. Recycling The Past 


Has watching TV seemed a little nostalgic lately? At a time when the power of a TV spot buy is being unravelled, some advertisers and their ad agencies are dipping into their advertising archives, revisiting classic hits from the 1970s and 1980s with remakes of the originals or simply running the old ones with a few tweaks. Over the past several months, Coca-Cola, Orville Redenbacher and Alka-Seltzer have all brought back decades-old classic spots. But does the trend mean clients are capitalizing on established brand equity, or just out of new ideas? Is focusing on the past really a good idea?




Related Stories:


How to Sell TLC, Animal Planet, Travel Channel and the Rest


Disney Network to Deal First and Most Aggressively


Present Buyers With Sampling of Pilot Lineups


Newspapers and Network TV Log Largest Declines


How Time Warner's TBS and TNT Are Positioning for May


Networks and New Media Players Jockey for Multimedia Budgets top


Checking in With TV Networks as They Jockey for Position


Checking in With TV Networks as They Jockey for Position


10. TV Program Reviews – Mostly Bad / http://www.medialifemagazine.com/artman/publish/cat_index_21.asp

11. Better ROI From YouTube Video Than Super Bowl Spot / Dove's Viral Hit 'Evolution' Is a Real Beauty

By Jack Neff  / Published: October 29, 2006 top


CINCINNATI (AdAge.com) -- Think dove's "campaign for Real Beauty" generated a ton of buzz for relatively little expense? You haven't seen anything yet.


Traffic spike
With not a penny of paid media and in less than a month, "Dove Evolution," a 75-second viral film created by Ogilvy & Mather, Toronto, for the Unilever brand has reaped more than 1.7 million views on YouTube and has gotten significant play on TV talk shows "Ellen" and "The View" as well as on "Entertainment Tonight." It's also brought the biggest-ever traffic spike to CampaignForRealBeauty.com, three times more than Dove's Super Bowl ad and resulting publicity last year, according to Alexa.com.

By those measures, "Evolution" is the biggest online-buzz generator in the U.S. personal-care and beauty industries, topping this year's effort from Omnicom Group's Tribal DDB on behalf of the Philips Norelco Bodygroom shaver. And that's before the campaign began rolling out to 10 additional countries in Europe, Asia and Latin America last week.

Blog buzz
"Dove Evolution" also trounced another October darling of the blogosphere -- would-be investment banker Aleksey Vayner's self-promotional video -- for mentions on Nielsen BuzzMetrics' BlogPulse. And it ranked among the top 15 blog-linked videos last week on Technorati -- the only one, aside from a presentation by Apple's Steven Jobs, from a nonpolitician.

Unilever credits the success to a major PR blitz from independent Edelman, New York, around "Evolution," a fast-motion look at the myriad cosmetic and photo-retouching efforts that transform a woman into a billboard beauty model. The tagline: "No wonder our perception of beauty is distorted."

While Dove has gotten major PR play from past iterations of the 2-year-old campaign, it's always come in the wake of paid ads. Those included a 2005 outdoor campaign showing zaftig women in their underwear and the 45-second Super Bowl ad depicting girls' doubts about their looks. The latter prompted an entire "Oprah Winfrey" show.

Broad TV pickup
Even that, however, has been swamped by "Evolution," which in the past two weeks has garnered segments on ABC's "The View," "Ellen," CNN, "Entertainment Tonight" and even Fox's "Geraldo."

Unilever had already found that buzz can beat the direct impact of paid media. Todd Tillemans, VP-North American skin care, said while the Super Bowl ad generated about 90 million impressions, pre- and post-game publicity produced another 400 million, even though the ad only aired that one time on regular TV. (It has since run on in-store networks at Wal-Mart and Sam's Club.)

"Evolution" and the broader Dove campaign are among the strongest examples to date of Unilever's movement to develop "ideas that penetrate pop culture," said Lisa Klauser, VP-marketing shared services.

"Because we're out to influence pop culture," she said, "you see our brands taking very distinctive points of view. ... Dove has taken a stand that real beauty comes in all sizes, shapes and colors, that real beauty can be very stunning, and that there are a lot of beauty myths out there that perpetuate low self-esteem."

Dove Self-Esteem Fund
The overwhelming buzz is nice, but the ostensible purpose of "Dove Evolution" was to raise awareness of and donations for the Dove Self-Esteem Fund, a program that helps develop workshops for girls and boys on issues surrounding beauty perceptions, said Mr. Tillemans. The fund's goal is to reach a million girls through such programs.

"This is a great example of where we're not using the old playbook where we do a lot of TV advertising," he said. He believes the strong consumer insight behind "Campaign for Real Beauty" gave the effort "viral legs" and that the particular message was "more powerful because it came from an objective source" in the form of the TV news and entertainment programs.'

Mr. Tillemans is convinced the emotional response the "Campaign for Real Beauty" has evoked from women has substantially strengthened brand loyalty, noting that two-thirds of brand sales now come from people buying more than one product, up from one-third three years ago.

"If you stood only for function, people would assess the brand based only on one category," he said. While cross-marketing, new-product performance and other tactical appeals have helped build that number too, he said, "I'm convinced the real driver of it is that the brand has increased awareness of this mantra, this mission."

It hasn't hurt sales, either. Dove has gained share in the past year in four of its five major categories: personal wash (body wash and bar soap), hair care, deodorant and hand-and-body lotion. http://adage.com/article?article_id=112835




More News to Come....

Compiled By Daniel Sage / President of MobileAdMarketing.com (300,000 Mobile Ad Spaces Available in 300 Markets in 48 States)


National Regional Local

The Facts and Stats on Mobile Outdoor Advertising...

  • Some 150 Million Americans Commute Every Business Day.
  • The Average American Travels 15,000 Milers Per Year.
  • Outdoor Media Reaches 96% Percent of US Consumers.
  • The Average Truckside AD Reach is about 50,000 per day.
  • The Average CPM Rate for Truckside Ads is around $1.50!
  • According to the American Trucking Association - The Average Delivery Truck Makes 16 Mil. Impressions a Year.