http://www.nytimes.com/2008/08/15/business/media/15adco.html
The ardor to reach consumers outside the home — and outside the realm of traditional media like television — continues to grow among marketers. They hope to fight back against technologies like digital video recorders, which make it easier to avoid conventional advertisements like commercials.
Out-of-home media was once commonly known as outdoor media, reflecting its roots in billboards, posters and signs. The term has been changed to reflect the expansion into places like airports, offices, malls, schools and health clubs, where the ads are inside but not inside the home.
That has also inspired another advertising term, place-based media.
The new places for ads — as well as the addition of digital and video capabilities to signs, bus shelters, phone kiosks and other sites — are among the reasons ad spending in the out-of-home category are second only to online advertising in growth.
The goal is to engage consumers “during the course of their daily lives in places they go on a frequent basis,” said Rick Sirvaitis, president at StoreBoard Media in New York, which puts ads on the security pedestals at the entrances and exits of retail outlets like drug stores.
“In 36 years in advertising, for the first time I can look people in the eye and guarantee every consumer will be exposed to the message,” Mr. Sirvaitis said, referring to a StoreBoard sign, “because you can’t miss it.”
Friday, August 22, 2008
Macy's, Wal-Mart invest in marketing, despite sour economy
Macy's, Wal-Mart invest in marketing, despite sour economyMacy's and Wal-Mart are not letting the troubled economy affect their spending on advertising and marketing. Macy's is working with research firm Dunnhumby to learn how to better target its various demographics to turn around its second-quarter sales drop, while Wal-Mart is ramping up its marketing and in-store communications in the second half of the year as it seeks to build upon a 10% hike in second-quarter sales and a 17% spike in profits.
For ad agencies, the Asian prize is India
http://www.iht.com/articles/2008/08/11/business/ad11.php
Most of the big Western agency groups, led by WPP, have been operating in India for years. But they face new competition from smaller agencies that have challenged them elsewhere. At least four so-called hot shops - boutique firms with only a handful of offices, compared with dozens or hundreds for the big agency networks - have recently opened, or announced plans to open, offices in India.
Most of the big Western agency groups, led by WPP, have been operating in India for years. But they face new competition from smaller agencies that have challenged them elsewhere. At least four so-called hot shops - boutique firms with only a handful of offices, compared with dozens or hundreds for the big agency networks - have recently opened, or announced plans to open, offices in India.
Media Outlets Losing Money From a Lack of Auto Ads
http://www.nytimes.com/2008/08/11/business/media/11auto.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1219429568-uVAy+yEJP1QsmYtZkL1DEg
In the first quarter alone, the auto industry spent $414 million less on advertising than in last year’s first quarter, according to TNS Media Intelligence.
And it’s not just the local newspaper or television station that is hurting from cutbacks in advertising by the local car dealerships.
In recent earnings reports from the major media companies, like Viacom and Time Warner, executives mentioned the downturn in the auto industry as one reason for lagging revenue at cable networks and magazines.
Newspapers were the hardest hit, losing $131 million in auto advertising, much of the decline coming from local dealerships that are having trouble moving cars off their lots.
“You’re talking about cars sitting on lots for 90 days,” said Mort Goldstrom, vice president for advertising at the Newspaper Association of America. “The dealers are saying, ‘I have cars that won’t move. And I can’t advertise.’ It’s because of cash flow.”
For the year, auto advertising dollars flowing to media outlets could decline by close to $3 billion, according to Sanford C. Bernstein & Company, to about $15 billon for the full year. Auto advertising peaked at close to $24 billion in 2004. Auto sales are at their lowest since 1993, according to Sanford C. Bernstein.
According to the newspaper association’s own data, the share of newspaper advertising from automakers is shrinking rapidly: in the first quarter, auto advertising represented just 2.8 percent of all national advertising in newspapers. As recently as 2005, the figure was more than 10 percent each quarter.
In the first quarter alone, the auto industry spent $414 million less on advertising than in last year’s first quarter, according to TNS Media Intelligence.
And it’s not just the local newspaper or television station that is hurting from cutbacks in advertising by the local car dealerships.
In recent earnings reports from the major media companies, like Viacom and Time Warner, executives mentioned the downturn in the auto industry as one reason for lagging revenue at cable networks and magazines.
Newspapers were the hardest hit, losing $131 million in auto advertising, much of the decline coming from local dealerships that are having trouble moving cars off their lots.
“You’re talking about cars sitting on lots for 90 days,” said Mort Goldstrom, vice president for advertising at the Newspaper Association of America. “The dealers are saying, ‘I have cars that won’t move. And I can’t advertise.’ It’s because of cash flow.”
For the year, auto advertising dollars flowing to media outlets could decline by close to $3 billion, according to Sanford C. Bernstein & Company, to about $15 billon for the full year. Auto advertising peaked at close to $24 billion in 2004. Auto sales are at their lowest since 1993, according to Sanford C. Bernstein.
According to the newspaper association’s own data, the share of newspaper advertising from automakers is shrinking rapidly: in the first quarter, auto advertising represented just 2.8 percent of all national advertising in newspapers. As recently as 2005, the figure was more than 10 percent each quarter.
53% of Marketers Will Reduce Ad Budgets
http://adage.com/cmostrategy/article?article_id=130490
The latest trend in advertising: budget shearing. So says a recent survey from the Association of National Advertisers, released today. The majority response from the small-scale survey (a neat 100 respondents) is that marketers across industries are bracing their ad budgets for some form of reduction. Fifty-three percent of those polled said they expected a cutback within the next six months; 87% said they're already weathering the pinch.
"We've seen this before," Bob Liodice, president-CEO of the ANA, told Ad Age. "Ad spending tracks remarkably close to GDP."
Nothing, it seems, is safe. Of those planning cuts 69% said they'll reduce media budgets; 63% said they'll reduce production budgets; 63% will pressure agencies to reduce expenses; 63% will restrict travel and other expenses; and 61% said they will eliminate or delay new projects.
However, such cutbacks might not be the necessary route. According to Mr. Liodice, marketers who have done just the opposite in the face of economic slowdowns -- that is, increased their spending -- saw more sustained growth when they emerged from the storm.
"It's a great opportunity to capture some shared market," Mr. Liodice said. "Effective marketing spending during economic downturns is not about how much you spend, but also how you spend it."
The latest trend in advertising: budget shearing. So says a recent survey from the Association of National Advertisers, released today. The majority response from the small-scale survey (a neat 100 respondents) is that marketers across industries are bracing their ad budgets for some form of reduction. Fifty-three percent of those polled said they expected a cutback within the next six months; 87% said they're already weathering the pinch.
"We've seen this before," Bob Liodice, president-CEO of the ANA, told Ad Age. "Ad spending tracks remarkably close to GDP."
Nothing, it seems, is safe. Of those planning cuts 69% said they'll reduce media budgets; 63% said they'll reduce production budgets; 63% will pressure agencies to reduce expenses; 63% will restrict travel and other expenses; and 61% said they will eliminate or delay new projects.
However, such cutbacks might not be the necessary route. According to Mr. Liodice, marketers who have done just the opposite in the face of economic slowdowns -- that is, increased their spending -- saw more sustained growth when they emerged from the storm.
"It's a great opportunity to capture some shared market," Mr. Liodice said. "Effective marketing spending during economic downturns is not about how much you spend, but also how you spend it."
Contrary Outlook: Online Ad Forecast Positive
http://www.clickz.com/showPage.html?page=3630609
Growth of the Internet ad spend has risen quickly for several years, though many recent ad spending reports and forecasts show signs of a slowdown in the growth rate. An IDC Quarterly Wrap-Up Model report of the U.S. online advertising market details an advertising increase in spending, while slightly slower than in years past.
For the second quarter of 2008, there was a 20.1 percent increase in online advertising spending, totaling $7.01 billion, up from $5.84 billion in the same period the previous year.
A recent report from the IAB and PricewaterhouseCoopers shows a 1.7 percent drop in ad revenue in the first three months of 2008 compared to the last three months of 2007. ZenithOptimedia shows a more positive global outlook than for the U.S. market.
"When you read media accounts at what online advertising is doing, they are very downcast," said Karsten Weide, program director, Digital Media and Entertainment. "The truth is if you look at the numbers, they are not all true." He said the growth is slower, but it is still growing at roughly 20 percent per quarter.
Growth of the Internet ad spend has risen quickly for several years, though many recent ad spending reports and forecasts show signs of a slowdown in the growth rate. An IDC Quarterly Wrap-Up Model report of the U.S. online advertising market details an advertising increase in spending, while slightly slower than in years past.
For the second quarter of 2008, there was a 20.1 percent increase in online advertising spending, totaling $7.01 billion, up from $5.84 billion in the same period the previous year.
A recent report from the IAB and PricewaterhouseCoopers shows a 1.7 percent drop in ad revenue in the first three months of 2008 compared to the last three months of 2007. ZenithOptimedia shows a more positive global outlook than for the U.S. market.
"When you read media accounts at what online advertising is doing, they are very downcast," said Karsten Weide, program director, Digital Media and Entertainment. "The truth is if you look at the numbers, they are not all true." He said the growth is slower, but it is still growing at roughly 20 percent per quarter.
Friday, August 8, 2008
Blinkx makes $39 million approach to Miva
http://www.reuters.com/article/marketsNews/idINL869961320080808?rpc=44
Blinkx Plc (BLNX.L: Quote, Profile, Research, Stock Buzz), an Internet video search company, has proposed buying U.S. search-based ad network Miva (MIVA.O: Quote, Profile, Research, Stock Buzz) for $39 million to accelerate its expansion in targeted Web advertising.
The approach, which has been made in a letter to Miva's board, proposes paying $1.20 a share -- a 54 percent premium on Miva's closing price on Thursday -- and would be funded entirely in cash, he said.
Blinkx Plc (BLNX.L: Quote, Profile, Research, Stock Buzz), an Internet video search company, has proposed buying U.S. search-based ad network Miva (MIVA.O: Quote, Profile, Research, Stock Buzz) for $39 million to accelerate its expansion in targeted Web advertising.
The approach, which has been made in a letter to Miva's board, proposes paying $1.20 a share -- a 54 percent premium on Miva's closing price on Thursday -- and would be funded entirely in cash, he said.
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