Jack Myers

The Future of Newspapers and New Business Models for Growth

2010-02-08T15:06:13-05:00

The intensive debate about the future of newspapers and print media is focused almost exclusively on news reporting and journalism. My focus is on commerce and the primary importance of establishing local newspaper sites, first and foremost, as the primary source for their communities' commerce needs and interests. The ongoing debates often miss the key point that consumers once relied on newspapers as their exclusive source for information on everything local for sale: to find houses, cars, jobs, restaurants, events, entertainment, products and services. As much as business concerns and issues may appear to be at the forefront in the corner offices at most major newspaper companies, it is the editorial product that management perceives as the core deliverable to consumers. Ads are the "fill" packaged to fit into and around the editorial content. But it should not be lost on the newspaper industry that those papers that continue to do well – pennysavers and local weeklies – design their content with advertising at the forefront and editorial content packaged around it. The debate today should revolve around the shifting relationship between editorial and advertising – and where the industry's priorities should be.

In today's full report available to subscribers, I share my recommendations for rebuilding the newspaper business and why I believe many newspaper and magazine publishers should be replaced in their jobs. I share an innovative new model for incorporating advertising into Kindle content and smart phone applications. I suggest that universities develop a new business curriculum focused on newspaper and media management, and argue for refocusing the fundamental discussions taking place in the corporate offices of leading newspaper and magazine publishers. I also include a new recommendation for generating $100 million in incremental subscription revenues for The Wall Street Journal.

If newspapers re-engineer their business models as I outline in this week's report, they will have an opportunity to regain their economic footing, enabling them to once again invest in journalism that is unfettered by economic concerns. In the long run, foundations are also likely to step up to underwrite journalistic enterprise. National news and investigative units will be underwritten by multiple newspaper organizations. Once local newspaper sites re-establish themselves as the primary source for their communities' commerce needs and interests, their news reporting and journalistic components will once again be allowed to thrive.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

Why Leno Deserves a Full Hour at 11:30 and Conan Deserves Cancelation

2010-01-22T15:35:18-05:00

Over the decade of The Tonight Show with Jay Leno, the host lost a mere 10% of the audience he inherited from legendary host Johnny Carson. That performance stands as one of the most impressive and outstanding achievements in a television industry that was defined by network TV ratings erosion during that period. In just a matter of weeks, Conan O'Brien's Tonight Show ratings dropped precipitously by half and they showed no indication of rebounding.

While Leno's ratings at 10 PM were not stellar, his show was far closer to meeting the expectations that NBC's programmers and researchers had anticipated in advance of their shift away from 10 PM dramas. Although I had maintained an open mind on the shift and believed it was a reasonable risk for NBC management, the reaction of NBC affiliates and the impact on the already troubled local Late News time period made it untenable for NBC to continue the trial. The idea for the move had originated with then-NBC programming chief Ben Silverman, who had quickly departed from the company and been replaced by NBC veteran Jeff Gaspin. Acting quickly to correct Silverman's blunder, Gaspin and NBC Universal CEO Jeff Zucker devised a strategy that they hoped would keep both Leno and O'Brien in the NBC family. Being too nice was their mistake.

They should have simply moved Leno back to where he belonged -- at 11:35 -- for a full hour, and offered to return O'Brien to his original time slot or allowed him to leave. It never made sense for Leno to move to a 30-minute warm up act for O'Brien's Tonight Show. I expect that move would have proved to be an even greater ratings disaster. While Leno was being a good corporate citizen by empowering NBC management to make programming decisions affecting him, O'Brien played the role of a whining three-year old who cries even harder when he's punished for bad behavior. The overriding truth is that The Tonight Show with Conan O'Brien was a ratings disaster threatening one of television's most valuable franchises.

What O'Brien got right is that The Tonight Show is too important to be relegated to 12:05 AM. The best move all along is the one that has emerged from the reality show swamp that late night television sunk into during the past few weeks. Jay Leno is back where he belongs as host of The Tonight Show. The Tonight Show will be a full hour at 11:35 (10:35 Central). Local NBC affiliates will no longer have the network alone to blame for poor ratings. Conan O'Brien can skulk off with his $40 million and his reputation as a cult comic intact.

When NBC and late night television settles back into its traditional patterns, NBC will be the beneficiary. There will be more focus and attention on Leno, who I hope will use the opportunity to refresh his format and relevance. Late Night with Jimmy Fallon and Last Call with Carson Daly will have a better lead-in and better time periods than a year ago, and will find new and larger audiences. And NBC programming head Jeff Gaspin will have an unprecedented opportunity to test new formats and series at 10 PM. Most importantly, all of us have been reminded again how important a role network television plays in our lives.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

ESPN, Weather and CNN Lead News & Sports Nets in Multi-Platform

2010-01-18T08:16:24-05:00

Not surprisingly, ESPN, The Weather Channel and CNN lead 20 news and sports TV networks in the availability of online, mobile and multi-platform advertiser opportunities, according to a poll of 140 advertiser and media agency executives conducted by Jack Myers Media Business Report. Among 56 general entertainment networks, MTV, Comedy Central, NBC-TV, Bravo, E!, VH1, Discovery Channel and ABC-TV were identified as leaders in providing advertiser-friendly multi-platform opportunities. (See details at http://www.jackmyers.com/commentary/research-reports/69981172.html).

The full Myers survey includes details on the performance of 20 news, sports and information networks on nine attributes:

Value for the Investment

Quality Sales Organization

High Quality Content

Effective and Relevant Sales Presentations

Innovative and Non-Traditional Sales Efforts

Relevant Research Insights

Online, Mobile, Multi-Platform Opportunities

Good Administrative Support Services

Expensive Media Costs

Efficient Media Costs

Details from the full report will be published during the next several weeks in Jack Myers Media Business Report.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

USA, TBS/TNT, FX, Food Network, Comedy Central and History Deliver Greatest Advertiser Value Among Entertainment TV Nets

2010-01-11T09:57:09-05:00

USA Network, TBS/TNT, FX, Food Network, Comedy Central and History have been named in a poll of senior advertiser and agency executives as offering the greatest Value for the Investment among 56 general entertainment broadcast and cable TV networks. The full results of Myers Survey of Advertising Executives on General Entertainment TV Networks’ Value and Sales Organization Performance is available as a PDF download to Jack Myers Media Business Report corporate subscribers. Next week, Jack Myers Media Business Report will publish results of an extensive survey of advertising executives on the value and performance of news and sports TV networks and next month our Survey on Online Media Value and Performance will be available. Myers asked 150 advertiser and media agency executives to identify the attributes they most closely associate with each of the 56 networks, among nine attributes identified. In this week’s full report, which is available to subscribers only (www.myersreport.com), details are provided on the top 30 networks identified as offering Value for the Investment. The full report identifies data for all networks for each attribute. Among broadcast TV networks, Fox-TV and CBS-TV are first in value, tying for 11^th ranked overall with National Geographic, but surpassed in value by USA, TBS/TNT, FX, Food Network, Comedy Central, History, Adult Swim, Spike, AMC and Discovery Channel.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

Media 2020 Vision: Perspectives and Solutions for the New Decade

2010-01-04T08:26:21-05:00

The first decade of the 21^st Century seems to have passed in a nano-second, yet this past year moved at a glacial pace as cracked corporate walls came tumbling down and eroding financial foundations collapsed. Ten years ago, the media and advertising businesses appeared to have a prosperous road ahead. Google and eBay were still in their terrible twos. Amazon and Craigslist were in their infancy. YouTube, Hulu, Facebook, My Space, Twitter, Skype and most of today’s hottest media growth properties did not yet exist. A very different reality exists as we enter this second decade of the 21^st Century. Wall Street and corporate investor relations groups remain mired in quarterly financial details that often obfuscate the true value of a company – or lack of value. In the context of the speed with which the industry is changing, analyses and forecasts looking forward just one or two years seem irrelevant. As we enter the second decade of the 21st Century a look forward to the state of the industry in 2020 strikes me as far more pertinent. We are in an industry in which “Chicken Little threats-that-the-sky-is-falling” have become a cacophony even though traditional business models survive and often appear to be thriving. But the fact is that for many the sky is actually falling and their infrastructures are truly collapsing. The media industry is at a historic turning point. What will the media world look like in 2020? In my first subscriber-only report of this new decade, I share my Vision of Media and Advertising in the year 2020. Share your comments at Media 2020 Vision

Jack Myers advises media companies, agencies and marketers on business strategies. He can be contacted at Jack@mediadvisorygroup.com.

This post originally appeared at JackMyers.com.

2009 Index of Reports, Forecasts, Data & Insights: Jack Myers Media Business Report

2009-12-28T09:03:36-05:00

Following is a year-end index of 2009 Jack Myers Media Business Reports, linking to the subscriber-only archive at www.jackmyers.com. If you are a subscriber and not able to access the archive, e-mail maryann@jackmyers.com for access information. For subscription details visit www.myersreport.com.

Online Video, Social Marketing, Mobile, Media Directed Promotion, Videogame Ads and Local Cable Lead 2010 Revenue Growth (12-21-09)

The range of forecasts for the advertising economy in 2010 is unprecedented, representing a spread of 12 percent from negative six percent to positive six percent. In this report I focus on the positive news for the media business in 2010.

Social Marketing Investments Forecast at $3.2 Billion in 2012 (12-14-09)

Marketers will spend an estimated $800 million in 2009 on social media, word-of-mouth and conversational marketing, increasing 23% over 2008 levels with growth projected to $3.2 billion in 2012.

Wall Street Ignores Media's Fastest Growing New Business (12-07-09)

Advertising will represent only 26.8% of total marketing expenditures in 2009 ($188 Billion), with below-the-line non-advertising marketing categories, often called "unmeasured media" representing 73.2% ($513.5 B). Marketers are drawing from these budgets to fund a growing array of media company offerings that exploit emerging interactive media capabilities.

MarketShare Partners Shifts Metrics from Eyeballs to Outcomes (12-03-09)

MarketShare Partners (MSP) is gaining the attention of leading marketers, agencies and media companies based on sophisticated strategic marketing analytics that are redefining marketing measurement and providing unequaled tools for marketing budget allocation

Online Video Advertising Grows 115% in 2009 (11-30-09)

Online video advertising will increase 115 percent to $968 million in 2009 and is forecast to be the fastest growing segment of the media industry through 2012.

Top Five Sales Attributes of 56 Cable and Broadcast TV Networks (11-23-09)

In-depth details highlighting the top five sales attributes of 56 general interest cable and broadcast television network, based on the results of the Jack Myers Media Business Report Survey of Advertising Executives.

The Search for Marketing's Soul: Report from the Monaco Media Forum (11-18-09)

Advertising cannot be depended upon to fund an endless supply of companies and services. We are at a turning point in the advertising industry – and the decisions being made by major marketers and media companies over the next two to three years will define the fundamental future of media throughout the world.

MTV Networks and Broadcast Nets Lead in Online, Mobile and Multi-Platform Offerings (11-16-09)

Report on those networks that are personified by offering valuable Online, Mobile and Multi-Platform Opportunities.

Discovery Channel Ranked #1 Quality Sales Organization by Ad Execs. TBS/TNT 2nd; History 3rd (11-09-09)

First in a series of reports on general entertainment network organizational attributes, based on exclusive research conducted by Jack Myers Media Business Report among our panel of advertiser and media agency executives

Perspectives on the Coalition for Innovative Media Measurement (11-02-09)

Is there an industry need for innovative media measurement? More to the point, is there a need for leading television networks, media agencies and marketers to organize a coalition to advance innovation in media measurement?

McKinsey's Failure at Condé Nast; Network TV's Strong 4th Quarter; Plus My Strategy for Media Industry Growth (10-26-09)

The media industry, which grew at a rate greater than 5.0% annually for four decades due to subscriber payments, affiliate fees and advertising revenues, is declining at an even more precipitous rate and there is little visibility for the future.

U.S. Hispanic Advertising Spending by Media, 2008-2010 (10-19-09)

The industry's only detailed insights on 2009 and 2010 Spanish language advertising expenditures in network television, radio, newspapers, magazines, online and out-of-home.

Will Conde Nast Changes Make a Difference, and Is a Deal with Scripps in the Works? (10-13-09)

Review of the recent changes at Condáº» Nast and a review of the overall prognosis for magazine publishing companies as the business continues to transform around digital expansion and free content distribution.

Comcast, NBCU and GE: The Pros, the Cons, the Winners and the Losers (10-05-09)

A preliminary analysis of the challenges, potential conflicts and opportunities suggests a generally positive prognosis for the long-term overall economic viability of the potential venture.

The Hidden $50 Billion Available to Media & Advertising Companies from Below-the-Line Marketing Budgets (09-29-09)

In 2009, total advertising revenues are projected to be $201.8 billion and total marketing revenues are projected to be $700 billion. In 2015, advertising revenues are projected by Jack Myers Media Business Report to grow to $253.2 billion while total marketing expenditures (including advertising) increase to $809.1 billion. Unless the media industry responds, an estimated $46 billion could be left on the table between 2010 and 2015.

2009 Recession is No Worse for Network TV Upfront Than 1991 and 2001 (09-21-09)

Looking back at Upfront spending patterns in the recession years of 1991 and 2001 uncovers some surprising and hopeful evidence that this year's Upfront declines are consistent with these past two recession-impacted Upfronts and that future prospects are brighter than many analysts anticipate.

2010-2012 Preliminary Ad Spending Forecast, Plus My Outlook for AOL (08-31-09)

Preview of estimated full-year 2009 ad spending data plus an opinion of the recent strategic moves by Tim Armstrong at AOL.

New Media Companies Confront Failure, While Traditional TV Network Model Proves Sustainable (08-24-09)

Today's report focuses on the resilience of traditional media empires and the self-destructive patterns of new media that are holding back progress, development and economic growth.

Scatter Forecast, Plus First Look at 2010-2015 Broadcast and Cable Network TV Ad Revenues (08-17-09)

"Will the scatter market be strong?" I share insights on likely scatter market conditions and some interesting nuances to the just-concluded Upfront. Also in this report is my first look at the long-term economic prospects for the broadcast and cable network advertising marketplace.

Upfront Results are Not Bad for the Networks (08-10-09)

Although many believe this year's drawn out process signifies dramatic and sustaining changes in the Upfront market, in fact the Upfront turned out to be a reasonably traditional process with predictable results. I outline the reported performance of broadcast and cable networks and explain some of the dynamics that reinforce misleading perceptions of Upfront results

Universal McCann Gains Wall Street Recognition for Media-Centric Reorganization (08-03-09)

What's behind the success at Universal McCann? A completely new approach to industry relationships spear-headed by Global CEO Matt Seiler, North America president Jacki Kelley and SVP New Business Jen Hohman.

Lessons the Cabletelevision Advertising Bureau and Media Industry Could Learn from Baseball (07-27-09)

As a baseball fan, I'm fascinated by how quickly the institution of Major League Baseball, team owners, players, agents and others are embracing a revolutionary technology-based system. I cannot help but compare MLB's embrace of technological advances to the quagmire the media industry finds itself in today and the industry's stall in advancing breakthrough technology-based innovation.

SpotWinner™ Delivers Guaranteed Commercial Views. Targets Below-the-Line Marketing Budgets for Traditional Media Companies (07-20-09)

SpotWinner is a new form of online and mobile advertising that features the :30-second commercial as the destination in a fun, entertaining online casual game format.

2009/2010 Upfront Finally Breaks in Last Gasp for Traditional Business Models (07-13-09)

Although several industry executives and investment analysts believe the media economy will experience positive signs for renewed growth this year, the reverse is the unfortunate reality.

The Upfront That Could Have Been (07-06-09)

As the broadcast network television Upfront moves forward quietly and with little momentum, it's becoming clear that procurement and financial officers of major marketers are dictating the pricing decisions and driving Upfront purchasing models. Based on the deals that are being negotiated and completed, overall apples-to-apples cost-per-thousand pricing is down compared to last year with total Upfront sales down considerably, leaving a higher than normal percentage of inventory available for scatter markets. Exceptional deals are available to marketers who would agree to flat to modest CPM increases, but instead of capitalizing on these potential opportunities, marketers are walking away from incumbencies and category exclusivities, ignoring major long-term relationships in return for cost efficiency considerations. In this week's subscriber report, I share detailed insights into this year's Upfront market conditions.

PlaceVine Connects Marketers to Brand Integration/ Branded Entertainment Opportunities (06-29-09)

PlaceVine is a web-based matchmaking service that connects marketers to brand integration opportunities across film, TV, and new media. There are over 400 content producers and 225 brands and agencies currently using PlaceVine.

Will CBS Be the Wal-Mart of Media? (06-22-09)

Across all segments of the economy -- from auto dealerships, to retail shelves, to entertainment venues, to sports events, and to media – we are experiencing an inversion of the supply/demand equation that has spurred economic growth for the last six decades.

Network Upfront Results Will Impact the TV Content Landscape for Decades (06-15-09)

Although marketers, agency executives and even network TV salespeople have been challenging the relevance of the network television Upfront marketplace for more than a decade, it has remained the predominant influence in media buying and selling. This year's Upfront results will have significant impact on the future of the network television business for many reasons.

LinkMe Mobile – Visual, Voice and Audio Recognition for Instant Content and Advertising Interactivity (06-08-09)

Privately financed early-stage mobile technology company LinkMe Mobile (formerly SnapNow U.S.), has the potential to revolutionize mobile search through patented visual, voice and audio search technologies. LinkMe Mobile is redefining how brands and advertisers connect with consumers. Now in the process of raising institutional B-round financing, LinkMe Mobile was founded by engineers at NASA's Jet Propulsion Lab in 2001. The company holds five patents with 27 additional patents pending globally. With its patents and sister brands in the UK, Japan and China, LinkMe Mobile is the only multi-national company to combine visual, voice, and audio recognition technology to create instant mobile interactivity for marketers, media companies and consumers. With the current number of global mobile phone users at over 4 billion and growing, mobile marketing is quickly becoming an effective and proven means for consumer engagement.

TV Network Valuations Will Not Be Destroyed by Free Content Distribution (06-01-09)

Laura Martin, Entertainment, Cable and Internet Analyst for Media Metrics/Soleil Securities expresses concern "about the slippery slope of professional content (CBS, Disney/ABC, NBC, Fox, Viacom, etc) moving from the TV to the PC." Martin calculates that "up to $300B of market cap across the entire television value chain is at risk."

Upfront 2009: Which Nets and Online Media are Best Positioned for Growth? (05-18-09)

Myers Publishing has been issuing reports on the network TV Upfront market since 1987, on television media sales organization performance since 1984 and on online media sales organizations since 2000. Insights on advertiser and agency perceptions and priorities are even more relevant this year as advertisers and their media agencies plan their Upfront strategies and consider broadcast, cable and online plans that respond to the economic recession. Led by Procter & Gamble, marketers sent word last year to agencies and networks that they would seek reductions of as much as 20 percent in cost-per-thousand while demanding that historical presence levels be retained. P&G's pricing memo stirred debate and dialogue and has proven to be misguided and unrealistic, as market pricing for the strongest networks is proving to be resilient even in the face of economic pressure. While networks may recalibrate their client mix and advertisers may reallocate their budget distribution, most plans fail to embrace the one-TV world and still differentiate between broadcast and cable TV. While there are legitimate reasons, the status quo seems to be intact in the Upfront for at least one more year.

Value and Vision: Identifying Media Growth Stocks in a Depressed Economy (05-11-09)

First Look at 2011 Ad Spending Projections (05-04-09)

The most likely scenario for a turn-around of the current media industry economic downturn suggests mid-to-late 2010, based on a typical six-month lag between GDP growth and an advertising rebound.

How Will the Economic Recovery Impact Media Stocks? (04-27-09)

For decades, advertising and media companies could reliably depend on ad spending to track consistently with gross domestic product. During recessionary periods, advertising has been a lagging indicator. Marketers maintained their ad spending until sales declined for two quarters and then held back on spending increases until six months after the recovery began.

Waiting for Advertising Economy to Rebound is Waiting for Godot (04-20-09)

As we entered 2008 many believed digital media would be the panacea to cure whatever might be ailing the media industry. All of a sudden, the proverbial shit hit the fan. This report outlines the economic challenges faced by advertising dependent companies beyond the current recession, and suggests the single greatest opportunity for sustained growth.

Goldman Sachs Report on Media Economy; Myers Research Lists TV/Online Research Leaders (04-13-09)

Goldman Sachs analysts identify three overriding themes for 2009 based on an analysis of 4Q earnings transcripts from the top 100 U.S. advertisers and various media companies' management comments.

Advertising: Stepchild of the Marketing Business (04-06-09)

The fact is that advertising is on the decline as a relevant weapon in the marketer's arsenal. It appears that most marketers consider advertising as little more than a distribution system for carrying advertising messages in multiple formats from point A to point B. Even as digital technologies have empowered an increasingly sophisticated set of communications enhancements, advertising remains the step child of the marketing business.

Which TV Networks Offer the Most Innovative Advertiser Opportunities? (03-30-09)

Advertisers are asking networks to ante up to innovative add-ons such as sponsorships, online packages, promotional initiatives and other non-traditional enhancements.

NBC Universal Cable #1 For Delivering Value for the Investment (03-23-09)

NBC Universal Cable Networks, Hallmark Channel, Rainbow Networks (AMC/We), Scripps Networks and Turner Entertainment Networks rate as the top five general entertainment cable networks for delivering value for the investment.

Nickelodeon, IGN, WashingtonPost/Newsweek, Discovery, EA, UGO, ESPN and USA Today Rated Tops by Ad Execs for Reaching the Most Engaged Online Audiences (03-16-09)

Advertiser and agency executives who spend more than 75% of their time working with online media rank Nickelodeon Online as the #1 website for delivering the most engaged and targeted audiences. Six other TV-based sites are included in the top 15 sites among 52 branded sites.

Local Ad Spending Down 20% in 2009; Emerging Media Up 5.0% (03-09-09)

Media and other advertising-dependent companies need to brace for challenging times ahead and accelerate initiatives to attract revenues from alternative sources. Success will be on a company-by-company and market-by-market basis within most traditional media categories and will depend on companies' strategic responses to current industry conditions.

Are Advertisers Just Not That Into Advertising? (03-02-09)

Could it be that marketers are just not that into the benefits of advertising anymore? Could it be that advertising is no longer valued as an important contributor to business success? Or, even more threatening, is it conceivable that marketers never really considered advertising to have any real value beyond a low-cost mass distribution vehicle for their ad messages?

Nickelodeon Named Best TV Sales Organization by Ad Execs (02-23-09)

Nickelodeon Kids and Family Group has been named Best TV Sales Organization of 2008 by more than 250 advertiser and agency executives who participated in this year's Myers Survey of Advertising Executives on National TV Value and Sales Organization Performance.

Threat to 2009 Online Video and Social Network Ad Spending (01-12-09)

Online video and social network advertising growth this year could be considerably less than expected, while online display and search advertising could be slightly better. As marketers retrench and concentrate budgets with media they perceive to be tried and true, agency buyers and planners appear to be gun-shy in recommending new options.

Welcome to 2009. TV, Advertising and Media Face Their Transformational Era (01-05-09)

Welcome to 2009. There is hardly a glimmer of positive news for the global and national economy. President-elect Obama will be challenged to create a national consensus behind his vision for a renewed sense of purpose and focus on the future. We in the media and advertising industry should also define our vision and have a renewed sense of purpose.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

Online Video, Social Marketing, Mobile, Media Directed Promotion, Videogame Ads and Local Cable Lead 2010 Revenue Growth

2009-12-21T08:20:33-05:00

Arguing that the media economy is rebounding based on a strong fourth quarter network TV scatter market is comparable to arguing against global climate change because of last week's blizzard. The indicators that are signaling an end to the recession do not assure a return to strong ad spending. But in the context of the holiday season, in this report I focus on the positive news for the media business in 2010. Jack MyersMedia Business Report's newly published 2007-2012 Advertising and Marketing Investment Report, available exclusively to corporate subscribers of Jack Myers Economic Forecasts, forecasts growth in eight of 19 advertising categories and four of the nine non-advertising marketing categories.

Social Marketing Investments Forecast at $3.2 Billion in 2012

2009-12-14T07:53:35-05:00

Marketers will spend an estimated $800 million in 2009 on social media, word-of-mouth and conversational marketing, increasing 23% over 2008 levels with growth projected to $3.2 billion in 2012, according to Jack Myers Media Business Report's newly published 2007-2012 Advertising and Marketing Investment Report. This growing category is difficult to track since many of the initiatives fall under promotional budgets, public relations and cause related marketing initiatives, and research budgets. To facilitate accurate analysis, internal customer service and loyalty marketing programs are not included in Myers' analysis. Jack Myers Media Business Report's newly published 2007-2012 Advertising and Marketing Investment Report is available exclusively to corporate subscribers at Jack Myers Economic Forecasts. Myers is the only leading forecaster to identify 28 advertising and non-advertising marketing categories, publishing data on 19 media categories and nine non-advertising marketing communications categories. The new category of Online Social, WOM & Conversational Marketing falls into the Non-Advertising Marketing sector based on its primary funding from non-media budgets. Detailed forecasts plus Jack Myers Media Business Report's full 2007-2012 Advertising and Marketing Investment Report are available exclusively to corporate subscribers at Jack Myers Economic Forecasts.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

Wall Street Ignores Media's Fastest Growing New Business

2009-12-07T10:53:15-05:00

First-Ever Assessment of "Media Directed Promotion/Event Investments" Tracks $16.7 Billion in 2009 and Projects $400 Billion in 2020.

This week, Jack Myers Media Business Report is publishing our newly recalibrated data on 19 advertising categories and nine "below-the-line" marketing communications categories. An accurate assessment of the media business requires a view of the total $700 billion marketers invest domestically in advertising and non-advertising consumer, distributor and retailer communications. Advertising will represent only 26.8% of total marketing expenditures in 2009 ($188 Billion), with below-the-line non-advertising marketing categories, often called "unmeasured media" representing 73.2% ($513.5 B). These categories include direct marketing, trade and consumer sales promotion, event marketing and public relations. Marketers are drawing from these budgets to fund a growing array of media company offerings that exploit emerging interactive media capabilities. In the industry's first assessment of this shift, Jack Myers Media Business Report estimates that Media Directed Promotion/Event Investments attracted an estimated $16.7 billion to media companies in 2009 and will generate an estimated $38 billion in incremental media company revenues in 2012. While these revenues are included in the financial reports of public media companies, Wall Street's use of future-looking data that excludes this growth sector results in a negatively skewed perspective of the emerging media marketplace. Jack Myers Media Business Report's newly published 2007-2012 Advertising and Marketing Investment Report is available exclusively to corporate subscribers at Jack Myers Economic Forecasts.

Jack Myers is founder and media economist at Media Economic Development Investment Advisory Group LLC, which advises companies on revenue generation, organizational models, and business strategies. Jack Myers' clients and underwriters of Jack Myers Media Business Report are published at www.mediadvisorygroup.com

Top Five Sales Attributes of 56 Cable and Broadcast TV Networks

2009-11-23T08:32:36-05:00

Accompanying this week's subscriber-only report are in-depth details highlighting the top five sales attributes of 56 general interest cable and broadcast television network, based on the results of the Jack Myers Media Business Report Survey of Advertising Executives. Respondents to the Myers survey were asked to select the top one to three attributes (among ten attributes listed) that best personify the networks. Thirty-five of the networks are credited for offering Online, Mobile and Multi-Platform Opportunities, the most frequently mentioned attribute. Innovative and Non-Traditional Sales Efforts was the second most frequently mentioned attribute (32), followed by Relevant Research Insights (31). The least mentioned attribute was Quality Sales Organization, associated as a top 5 attribute for only 13 networks. Respondents identified 25 networks as having No Meaningful Sales Organization Qualities among their top attributes. The attributes measured were: Online, Mobile, Multi-Platform Opportunities; Innovative and Non-Traditional Sales Efforts; Relevant Research Insights; Effective and Relevant Sales Presentations; Efficient Media Costs; Expensive Media Costs; Value for the Investment; Good Administrative Support Services; No Meaningful Sales Organization Qualities; Quality Sales Organization. Additional surveys are being fielded to identify the attributes of news, sports and information networks, leading websites and print media.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

Perspectives on the Coalition for Innovative Media Measurement

2009-11-03T11:16:22-05:00

Is there an industry need for innovative media measurement? More to the point, is there a need for leading television networks, media agencies and marketers to organize a coalition to advance innovation in media measurement? The Coalition for Innovative Media Measurement (CIMM) has posted two requests for proposals on its website (www.cimm-us.org/rfp.htm) and is anticipating significant interest from media research suppliers including both Nielsen and WPP's TNS. The history of media and advertising industry consortia and coalitions, as I am too painfully aware, is one of failure and rejection. Can CIMM, formed with nearly $2 million in seed funding from 14 founding member companies, beat the odds and generate meaningful and long-term advances? In this week's detailed full report I review CIMM's objectives, share my perspective on the Coalition's prospects, and argue for increased industry support.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

McKinsey's Failure at Conde Nast; Network TV's Strong 4th Quarter; Plus My Strategy for Media Industry Growth

2009-10-27T08:03:27-04:00

From 1963 to 2007, the domestic U.S. advertising business grew at an annual rate of 5%, staying slightly ahead of inflation. Between 2008 and 2011, Jack Myers Media Business Report projects the total advertising business will decline from $245 billion to $194 billion, a dramatic 20% decline. (See Jack Myers detailed Advertising and Marketing Forecasts 2007-2012.) From 2012 to 2020, the advertising business will achieve average annual growth only in the low to mid single digits. The media industry, which grew at a rate greater than 5.0% annually for four decades due to subscriber payments, affiliate fees and advertising revenues, is declining at an even more precipitous rate and there is little visibility for the future. It's ironic that these revenue declines are happening during a golden age of media brands when more capital than ever before is flowing into high quality professional content development. In this week's subscriber-only report, I outline the growth opportunities for advertising and subscription dependent media companies, challenge the McKinsey-led actions of Condé Nast and review the implications of network TV's strong 4^th quarter scatter.

Jack Myers consults with media, agencies and marketers on transformative business models and revenue growth strategies. He can be contacted at jack@mediadvisorygroup.com.

U.S. Hispanic Advertising Spending by Media, 2008 - 2010: New Myers Report

2009-10-19T14:37:15-04:00

Hispanic language advertising expenditures are forecast to decline 11.2 percent in 2009 and will rebound slightly with 2.3 percent growth in 2010 according to a new report prepared by Jack Myers Media Business Report. Network television accounts for nearly 50 percent of all Spanish language advertising and, along with online media, it has been the least impacted by the negative trends impacting the advertising industry. In this week's report Jack Myers Media Business Report subscribers are being provided with the industry's only detailed insights on 2009 and 2010 Spanish language advertising expenditures in network television, radio, newspapers, magazines, online and out-of-home.

Jack Myers consults with media, agencies and marketers on transformative business models and revenue growth strategies. He can be contacted at jack@mediadvisorygroup.com.

"For a Better and Safer New York"

2009-10-13T12:34:27-04:00

"We decided to have a mission of making New York a safer and better place to live, to help prevent what happened to John from happening to others."

I am honored to be chairman this year of the John A. Reisenbach Foundation event on November 30 honoring Zenith Media Vice Chairman Peggy Green; Turner Entertainment President of Ad Sales, Marketing and Sports David Levy; and Paley Center for Media President Pat Mitchell. New York City Police Commissioner Ray Kelly is also being honored by the Foundation with a lifetime achievement award. The following commentary explains why your support is so valuable and important to the City of New York and to the media and advertising communities. For information visit www.reisenbachfoundation.org and to order tickets call Linda Lese at (212) 935-1840.

Those of us who live, work and spend time in New York City are especially blessed that it has become the safest large city in the country. That was not always the case. Former Warner Bros president of worldwide marketing Sandy Reisenbach has an especially poignant perspective on that reality. Eighteen years ago, the John A. Reisenbach Foundation (www.reisenbachfoundation.org) was formed by media, advertising and communications executives in memory of Sandy's son John, a beloved TV industry executive who was shot and killed on the streets of lower Manhattan while on a pay phone to a colleague.

In the media and advertising business we share the blessing of being a part of a community that understands the importance of giving back and contributing to the greater good. It is especially important in this time of economic hardship for so many and especially for the local organizations committed to a better and safer New York that are funded in part by the Reisenbach Foundation. "I find that media and communications people are the most giving and most wonderful group," Sandy Reisenbach says. "We work together and compete, but when push comes to shove we all come together as a small family. It is incredibly important to give back, especially in times like these," Sandy believes. "When you go home at night you've accomplished something beyond work. When I think of what has been given to the Foundation established in John's name, I feel like I may have lost a son but something very good was created. It will never replace John but those who keep giving to the Foundation keep his memory alive and give to others in ways that would make John very happy and proud."

The cocktail event, to be held November 30 at 6 PM at the Harmonie Club, hosts an industry "who's who" from media companies and agencies, many of whom have actively supported the Foundation since its inception. The Reisenbach Foundation provides scholarships for students at John Jay College, supports child abuse prevention programs, underwrites the "Safe on Staten Island" anti-crime program, assists the "Safe Horizons" violence prevention program, works with police on 'Gun Stop' to get guns off the street, provides funds for the new Crime Center, and funds special police vans with high tech equipment to get first hand information to police who are on the scene at crimes. Contributions, says Sandy Reisenbach, "get right down on the street. You can see what your contributions accomplish and how it directly affects New Yorkers."

Robert Lilley, who was among the founders of the Foundation and who served as its chairman for 12 years, explains the organization was created following a memorial service for John as his friends and colleagues gathered and "discussed the pattern of unsolved murders in New York. We were all in the communications and advertising industry and we felt we should try to do something about this rather than let it pass. We met for some time trying to determine what to do and how to do it and someone passed along the phrase 'ruthless focus.' Many organizations try to do many things for many people. We decided to have a mission of making New York a safer and better place to live, to help prevent what happened to John from happening to others."

"When the boys decided to create the Foundation," recalls Sandy Reisenbach, "I wondered if it was appropriate. I appreciated the thought. I was concerned that they wouldn't know what to do; they weren't fund raisers. But they were determined they were going to do something about it. I have been incredibly impressed. They have a wonderful organization and have done great things for New York City. The foundation is as relevant today as it ever has been. There are people who are dangerous and people we need to protect to the best of our ability. With our economic issues today there is more unemployment and crime is likely to increase. Programs will be squeezed by the government and private donors. Getting support and funding is more important then ever. This is when they need it the most." Although he hesitated to single out individuals since "so many have contributed so much," Sandy offered thanks to Lilley, current Foundation chairman Jim Rosenfield, Larry Schatz, Arnie Semsky, Alec Gerster, Mike Weiden, George Karalekas, Jim Beloyannis and Gerry Byrne.

The November 30 event is a celebration and reaffirmation in John Reisenbach's memory, when people in the media and advertising industry come together to do good for the city and to remember John and renew the commitment of the media industry to New York. The cocktail event and awards presentation will be emceed by local news anchor Jim Rosenfield.

Although the economy causes us all to scale back our contributions, media companies need to give thanks for our blessings and support those causes that differentiate and define us as a community. Everyone in the industry is welcome to join us on November 30 in the spirit and memory of John A. Reisenbach, the All-American Television executive, friend and colleague who lives on through your support. Visit www.reisenbachfoundation.org, call Linda Lese at (212) 935-1840 and give thanks for being part of a community that cares and remembers.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.

Will Conde Nast Changes Make a Difference, and Is a Deal with Scripps in the Works?

2009-10-13T12:32:07-04:00

In this week's Jack Myers Media Business Report I review the recent changes at Condáº» Nast and argue that they will have little material impact on the company's success in expanding its digital initiatives. I also connect the dots between Condáº» Nast and other media companies with complementary needs, such as Scripps Networks. In this context, I review the overall prognosis for magazine publishing companies as the business continues to transform around digital expansion and free content distribution.

Jack Myers consults with media, agencies and marketers on transformative business models and revenue growth strategies. He can be contacted at jack@mediadvisorygroup.com.

To communicate with or to be contacted by the executives and/or companies mentioned in this column, please email your information and the column headline to Jack directly at jm@jackmyers.com.

This post originally appeared at JackMyers.com.