Layout Image

30-Second TV Spots Endangered by DVRs and VOD

The Center For Media Research

A survey, by the Association of National Advertisers (ANA) and Forrester Research, found that 78% of advertisers feel that traditional television advertising has become less effective in the past two years. The survey also found that marketers are exploring emerging technologies to help bolster their television advertising spend.

70% of 133 national advertisers surveyed, representing more than $20 billion worth of advertising, think that DVRs and video-on-demand will reduce or destroy the effectiveness of traditional 30-second commercials.

Josh Bernoff, Vice President, Forrester Research, said “Television networks continue to publish research that traditional TV advertising is (as) potent as ever, but national advertisers aren’t buying it and are seeking alternatives to enhance their budgets and move them beyond the customary 30-second spot.”

Key highlights of the survey include:

  • When DVRs spread to 30 million homes, close to 60% of advertisers say that they will spend less on conventional TV advertising; of those, 24% will cut their TV budgets by at least 25%.
  • While 55% say that their top executives are closely watching changes in TV advertising, most advertisers have not experimented with advertising on DVRs or video-on-demand.
  • Eighty percent of advertisers will spend more of their advertising budget on Web advertising and 68% of advertisers will look to search engine marketing.
  • Advertisers will spend more of their advertising budgets on branded entertainment within TV programs (61%), TV program sponsorships (55%), interactive advertising during TV programs (48%), online video ads (45%), and product placement (44%).

Bob Liodice, President and CEO of the ANA. said “As new and traditional media alternatives compete more aggressively for a share of the media pie… television is aggressively responding. With technology-based advances in addressability, enhanced television options, Internet convergence (IPTV) and branded entertainment opportunities, television is likely to continue as the dominant part of the marketing mix.”

For additional information, please visit the ANA here.

Outdoor Ad Spending Soars 8%

MediaPost Publications – Joe Mandese

OUTDOOR AD SPENDING ROSE  8 percent during 2005, making it one of the fastest growing sectors  of media last year, according to final estimates released today by the  Outdoor Advertising Association of America. Results were especially strong in some fast-growing categories, including: communications (+31.8 percent), insurance and real estate (+16.4 percent) and retail (+11.7 percent).

How Should I Spend My Marketing Dollars in 2006?

Leora Lanz and Barbara Wiener

As we review sales and marketing initiatives for 2006, we all have the same goal: to increase market share and improve the bottom line.

In this fast-paced and competitive environment, there are more marketing tools and opportunities open to us than ever before, and the ways we will get there and how we will choose to allocate our dollars are indeed numerous. We are familiar with the traditional advertising that we have been using for the past 20 years. But with Internet marketing and e-commerce, the challenge for many will be to understand and keep up with the variety of new tactics and mediums available, and which ones make sense for reaching out to current and prospective customers.

May we suggest that you be open to experimenting and focus your budget on a select few new tactics to see how they work? New tools evolve everyday and trying out innovative and creative marketing methods is ok. Just don’t spread your marketing dollars too thin so that nothing is effective.

Ever thought about advertising on cell phones or i-pods? On the treadmill’s screen display at the local health club? On the elevator monitor in a large downtown office building? What about electronic transit advertising? Pick a couple of tactics and focus on them. If they don’t work, try something else. There are many choices!

If you haven’t already, consider trying the e-newsletter and see how that works. Promotional e-mail blasts and e-newsletters – proven sales tools for many – are relatively simple and inexpensive to produce. Set a goal, track it in your reservation system and give it time to work. If it doesn’t meet your objective within a reasonable and measurable period – say, four or five months – then re-allocate the dollars and try something else.

In your Public Relations efforts, it may make sense to add a strategy that appeals to bloggers. It’s a whole new talkative, loud, and crowded world out there, and growing quickly (you may have already read an online travel journal about someone’s Christmas vacation and his or her stay at a particular hotel). Blogs are being read by more and more journalists. And they offer perspectives and insights which are being broadcast loudly. This is called “electronic word of mouth.”

Ultimately, your strategic plan should fulfill your vision and mission statements, but also ask yourself:

  • How well do we know our customer so that we are making the correct marketing decisions?
  • Do we want to look at less traditional advertising for this year and see how it works?
  • Are we being creative in our approach?
  • Do we understand the various tools and what they can accomplish?
  • Are we being selective in the tools we are choosing and giving them enough time and dollars to be successful?
  • Should we try public relations to get that all-important, third-party endorsement?
  • Are we abandoning a particular tool if need be and going on to try something else?

In the larger scheme, patience is required when it comes to putting your key message and brand positioning out there. Don’t abandon these too soon. It can take a full two to three years for the public to associate and retain your special message(s). Behind the scenes, you may be bored with them [the messages], but they still may be working at building relationships and creating awareness, and ultimately converting leads to sales.

There is no right or wrong answer as to how to spend your marketing dollars. But if you don’t keep up and try some of the new methods, you risk falling behind. HVS Marketing Communications can work with you to assess the strengths and weaknesses of your current sales, marketing, and public relations plan(s); assemble a new and more comprehensive plan; or coordinate efforts to help you take advantage of some of the numerous opportunities at hand.

Newspaper Circulation Slides 2.6 Percent

Seth Sutel, AP Business Writer
Industry Group Reports That Average Weekday Circulation at U.S. Newspapers Fall 2.6 PercentNEW YORK (AP) — Average weekday circulation at U.S. newspapers fell 2.6 percent during the six month-period ending in September in the latest sign of trouble in the newspaper business, an industry group reported Monday.

Sunday circulation also fell 3.1 percent at newspapers reporting to the Audit Bureau of Circulations, according to an analysis of the data by the Newspaper Association of America.

The declines from the same period a year ago show an acceleration of a years-long trend of falling circulation at daily newspapers as more people, especially young adults, turn to the Internet for news and as newspapers cut back on less profitable circulation.

In the previous six-month reporting period ending in March, weekday circulation fell 1.9 percent at U.S. daily newspapers and Sunday circulation fell 2.5 percent. By comparison, a year ago newspapers reported a 0.9 percent decline in weekday circulation and a 1.5 percent fall on Sundays.

Circulation at the country’s three largest newspapers was relatively stable in the most recent reporting period, but many others showed significant declines.

Gannett Co.’s USA Today, the largest-selling daily, slipped 0.6 percent from the same period a year ago to 2,296,335; The Wall Street Journal, published by Dow Jones & Co., fell 1.1 percent to 2,083,660; and The New York Times rose 0.5 percent to 1,126,190.

Of the rest of the top 20 newspapers reporting, all but one, The Star-Ledger of Newark, N.J., posted declines generally ranging between 1 percent and 8 percent.

The San Francisco Chronicle, published by Hearst Corp., posted a 16.4 percent tumble in circulation as the newspaper slashed less profitable, heavily discounted and giveaway circulation subsidized by advertisers.

Circulation has been steadily declining at newspapers for several years as readers look to other media for news. Tougher rules on telemarketing have also hurt newspapers’ ability to sign up new readers.

Newspapers also face sluggish growth in advertising, higher newsprint prices and increasing concern among investors about newspaper growth prospects. The second-largest newspaper publisher in the country, Knight Ridder Inc., is facing a revolt from two of its top shareholders, who want the company to be sold.

John Murray, the vice president in charge of circulation at the NAA, said on a conference call with reporters that despite the continued slippage in overall paid circulation, newspapers were retaining subscribers longer.

That can save newspapers money over time as costs fall for replacing subscribers who don’t renew. Newspaper executives also say advertisers are increasingly looking for “quality” circulation, meaning copies that aren’t sold at a discount or given away for free to people who might be less interested in actually reading the paper than someone who signed up and is paying full price.

To that end, newspapers are steadily reducing their reliance on telemarketing to replace lost subscribers since those readers are more likely to drop out. Telemarketing has also become more difficult and expensive after the national “do-not-call” law went into effect in 2003. As of 2004, the number of new subscribers from telemarketing fell to 30.9 percent versus 39.1 percent in 2002, the NAA says.

Newspapers are also hoping to keep subscribers longer by signing them up for recurring payment options such as automatic checking account deductions or credit card charges. Murray said the portion of papers using automatic payment plans rose to 15 percent last year versus less than 5 percent two years before that.

Stricter circulation reporting rules and increased caution following a circulation misstatement scandal a year ago have also led to publishers being more conservative in reporting their circulation figures, Murray said. “The price of making a mistake went up dramatically in terms of visibility and notoriety,” Murray said.

Four major newspapers which had been barred from filing circulation data for the previous two reporting periods deferred making reports until their next six-month audits are complete. Those papers are Newsday of New York’s Long Island; the Dallas Morning News; the Chicago Sun-Times and Hoy, a Spanish-language newspaper in New York.

Four other newspapers whose circulation was affected by Hurricane Katrina did not file statements with the Audit Bureau: The Times-Picayune of New Orleans; the American Press in Lake Charles, La.; The Beaumont Enterprise in Texas; and The Daily Leader in Brookhaven, Miss.

Newspaper Association of America:

http://www.naa.org