61 Marketing Trends found for Media / Radio

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Investors' Thumbs-Up for All US Media - but Social Sites No Longer Flavor of the Month

Is adland finally coming to its senses as the global economic recovery gains momentum? According to an annual survey, released today by investment banker AdMedia Partners, the vast majority of media industry executives and investors, have grown more confident in the macro economy, as well as the underlying health of the ad industry. They are, however, far more bullish on the prospects for digital than traditional media. The sole exception is social media, the efficacy of which is "overrated" in the opinion of 65% of those polled. 

[Estimated timeframe:2010-2020]

The report, the 16th annual edition of  Acquisition Prospects for Media, Marketing Services and Digital,"is based on online survey of more than 7,400 executives in the advertising, marketing services, digital marketing, marketing technology, media or digital media businesses, and related venture capital and private equity investors.

It finds that 70% of the respondents have a "stronger" view of the economy in the year ahead, while 29% think it will remain the same, and only 1% believe it will worsen. That compares with only 3% or believed it would get stronger, and 80% who thought it would get weaker when AdMedia Partners surveyed them a year ago.

That outlook has also transferred to the advertising economy, with respondents projecting that overall ad spending would rise 3% this year, vs. a decline of 5% a year ago. Expectations for interactive ad spending, the sweet spot within a struggling ad economy, have also grown much better, with respondents projecting a 10% gain this year vs. a 5% gain a year ago.

Those expectations are fueling the underlying values of advertising- and media-related investment decisions, and based on the results, AdMedia Partners says the mupltiples - or M&A valuations - of companies has grown to 7 to 8 times EBIT (earnings before interest and taxes) for digital agencies and marketing services firm, which compares to a multiple of only 5 times EBIT for traditional agencies and 6 to 6.5 EBIT for traditional marketing services firms.
The valuations for pure play online media firms is even healthier - 8 to 9 times EBIT - while the multiples for traditional newspaper operators are the worst: 3 times EBIT.

Asked when the online businesses of traditional media categories would represent more than 50% of their total revenues, 44% of respondents said that inflection point would occur within five years for the newspaper industry, while 38% believe it will happen within 10 years. Nearly two-thirds of respondents (65%) believe those business models would flip for B-to-B publishers within the next five years, while only 21% believe it would occur for consumer magazine publishers during that same period.

Despite those expectations, only a minority (20%) of respondents believe that online content companies have developed "sustainable business models, which is actually significantly worse than the percentages citing that in 2009 (30%) and 2008 (51%).

The most "underrated" online business opportunities, respondents said, are for "niche enthusiast content" (49% citing), mobile content (43%), gaming (32%), user-generated content (21%), and ad networks (20%).
The most "overrated" online business opportunity, they said, is "social media networks" (63% citing), followed by "ad exchanges" (51%).

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: MediaPost.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5062

BBC's Vision of a Digital Future Draws Anti-Murdoch Line in Sand

Mark Thompson, director-general of the BBC, on Tuesday lifted a metaphorical index finger to Rupert Murdoch and the News Corporation empire. In the face of sustained oppposition from the latter, Thompson made abundantly clear the BBC's refusal to back-down on its controversial digital strategy in order to pacify commercial rivals. Observers believe the BBC Trust - the corporation's oversight body - has already nodded its unofficial approval - without which Thomson would unlikely to have extended his neck this far!

[Estimated timeframe:2010-2013]

Politicians and commercial media have complained long and loud that the £3.6bn of licence fee money distorts their markets, prompting the BBC to conduct a strategic review to consider its future shape.

Its conclusion, presented to the BBC Trust by Mark Thompson, the director-general, was that £600m would be reallocated to concentrate on high-quality journalism, culture and education, original comedy and drama, children’s programmes and “nationally unifying events”, such as royal weddings and ­funerals.

Of that sum, £100m would come by cutting two digital radio stations, reducing the budget for bbc.co.uk by a quarter, spending less on imported shows and administration. The remaining £500m would be shifted from existing budgets after 2011, with BBC 2, Radio 2 and children’s shows given higher priority.

Mr Thompson accepted criticism that the BBC’s operations in certain areas, especially online, had put commercial operators under financial strain. That would now change, he said.

The document leaves open the question of how the service the BBC provides will change in the longer term, but Mr Thompson made clear he was determined to embrace the digital future between now and the expiry of the corporation’s licence fee settlement in April 2013.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: FT.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5061

US Local Ads Will Decline Until 2012 - Then Surge

US researcher BIA/Kelsey predicts in its Local Media Annual Forecast (2009-2014), that America's local advertising market will reach $144.9 billion in 2014, representing a modest compound annual growth rate of 2.2 percent from 2009. Among the factors taken into account in its forecast are ...

[Estimated timeframe:2010-2014]

In the wake of a significant contraction in 2009, local media spending is expected to be slow through 2011, with meaningful recovery beginning in 2012.

According to BIA/Kelsey president Neal Polachek: “Even with improvements in the overall economy, we do not anticipate a rapid recovery among traditional media over the forecast period, because we believe the structural change in the local media industry has accelerated.”

Traditional media is forecast to decline from $115 billion in 2009 to $108.2bn in 2014 (CAGR* of minus 1.2 percent). During the same period, spending on online/interactive media is projected to grow from $15.2bn to $36.7bn (CAGR of 19.3%). *Compound annual growth rate.

Meantime, a steady shift toward digital media continues. Spending on traditional media will decline from $115bn in 2009 to $108.2bn in 2014 (CAGR minus 1.2%). During the same period, spending on online/interactive media is projected to grow from $15.2bn to $36.7bn (CAGR of 19.3%).

Key drivers of the current forecast are:

  • Larger than previously forecast declines in newspapers and direct mail.
  • Slowing growth of the interactive/online sector, including search, display and classifieds.
  • A further ramp-up in political advertising, due to the recent US Supreme Court decision, which will benefit the traditional television and radio sectors, as well as the interactive and direct mail sectors.

The report also reveals that more than half (55%) of all US ad spending is ‘local’ - albeit  by medium-size and national businesses in many cases.


All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: BIA/Kelsey
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5056

Unilever, ESPN Probe 2015 Media Scene

As consumers increasingly exert their control over a fast-fragmenting media sector, TV programmers and their advertising partners are engaged in cooperative clairvoyance - bidding to predict the future of media and develop strategies to engage consumers in a splintered marketplace. US cable network ESPN has accordingly joined with GroupM’s Mindshare and packaged-goods giant Unilever to produce a new report: Media 2015: The Future of Media.

The report moots four scenarios in which media appetites are graded by such vacuous sobriquets as Hungry Hungry Hippo to Kate Moss; while the sources of information these cartoon characters consume range from a handful of outlets to a virtual plurality. In response to each model, the partners have devised specific tactics for meeting these new challenges.

“In a sense, we’re living in the future now, minus the flying cars,” says Mindshare’s North American managing director for consumer insights Mark Potts  “It’s an ‘always-on’ world, but at the same time, there’s a parallel world where consumers don’t always want to be plugged in. This [report] is a way for us to flesh out and organize our thinking.”

Observes Rob Master, Unilever’s North America media director: “It’s less about the platform than how consumer behavior will change because in four years years, we’ll be talking about a company that doesn’t exist today. We’re setting a new course in terms of how we think about connecting with consumers.”

In one scenario, social media like Twitter is in the ascendancy, accelerating the disruption of an already splintered marketplace. In such circumstances, advertising will be tailored to time and place, and agencies looking to help clients navigate the landscape will preside over a tsunami of data.

A second scenario, Portal of Me, posits a world where media access remains fluid, but consumer attention is focused on a few trusted brands and outlets. Content will be customized and filtered by third parties that tailor information to the specifications of consumer-provided preferences. Under this model, the consumer cedes a certain control, and brands permitted access to these walled gardens will have demonstrated a value that transcends privacy issues. Desire will beget consent.

Meantime, two other models assume a more fixed media environment in which consumers' age and education position them on the media matrix.

“The future will probably look like a combination of each scenario, but TV will stand up in the longer term,” Potts said. “We’re not sounding the death knell of traditional advertising. We’re just preparing for every contingency.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: Adweek.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5019

Will Apple's New Tablet Resuscitate Traditional Media?

Although Apple has yet to pull the dust covers off its much-fanfared new tablet device (to be unveiled 27 January) it is widely believed the gizmo will prove a lifeline for the world's beleagured traditional newspapers, magazines and other print media. Even TV, according to the Book of Jobs. The device is expected to play a key role in homes and classrooms. And - presumably - businesses.

Commercially the device follows the iPod business model with paid content dowloads, and is devised to be shared by multiple family members to read news and magazines, check and send email - even watch TV.

Content-wise Apple has been courting the business community, talking turkey with such established media names as The New York Times Company, Condé Nast Publications, Harper Collins Publishers and its parent News Corporation.


Equipped with a virtual keyboard, the tablet will also function as a computer. "Mr Jobs," gushes an Apple PR hack "is supportive of the old guard, and looks to help them by giving them new forms of distribution. What drives all of these changes is technology, and Apple has an ability to influence that."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4987

US Supreme Court Scraps Political Adspend Limits, Riles Obama

In a 5-4 vote the US Supreme Court yesterday overturned the longstanding limits on political advertising expenditure, to the unbounded glee of political lobbyists, major corporations and employee unions - to say nothing of Big Media. President Obama was not best pleased at the Court's majority decision in which the five Republican-appointed members outvoted the Democrat appointees. But the Prez, it transpires, is not going to take this lying down ...

The ruling followed a petition by Citizens United, a conservative Republican group which, during the 2008 election produced a propaganda documentary, Hillary: The Movie, implying that Hillary Clinton was unfit to hold office as US Secretary of State. It was the pressure group's intention that the movie would be made available for downloading from cable companies, supported by an advertising campaign

But it failed to see light of day, stifled by the [then] law on corporate adspend limits. CU accordingly petitioned the Supreme Court, arguing that although the film was supported by corporate interests, the ads didn't violate campaign finance rules.

The court's majority overturned two key elements of campaign finance law: the ban on corporations using their own money to engage in political activity, and the blackout period that prevents certain groups from spending money on ads within 60 days of an election. The court ruled today such limits violate the First Amendment.

President Obama was not best pleased by the court's decision and vowed to to work with Congress to pass legislation.

"With its ruling today," he hissed, "the Supreme Court has given a green light to a new stampede of special interest money in our politics. It is a major victory for big oil, Wall Street banks, health insurance companies and the other powerful interests that marshal their power every day in Washington to drown out the voices of everyday Americans."

"I am instructing my administration to get to work immediately with Congress on this issue. We are going to talk with bipartisan Congressional leaders to develop a forceful response to this decision. The public interest requires nothing less."

The court's ruling opens the floodgates for additional political ad spending by corporations, unions and special interest groups.

Commented Evan Tracey, president of TNS Media Intelligence's Competitive Media Analysis Group: "I think it takes an already bulked up [election season] and puts it on steroids."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: AdAge.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5003

Saudi Royal Anoints James Murdoch as Poppa's Successor

What in tarnation, stock-speculators might ask, has an Arab princeling to do with the succession to the thone of Clan Murdoch's family business? Well it just so happens that Prince Alwaleed bin Talal of Saudi Arabia holds a seven percent stake in News Corporation and he's as worried as hell as to what'll happen when Rupert (78) steps - or falls - off the twig.

James Murdoch“If he [Rupert ] doesn’t appoint him [James Murdoch, pictured] I’ll be the first one to nominate him to be the successor of Mr Rupert Murdoch, God forbid if something happens to him,” Prince Alwaleed said on a US TV show a few days ago.

With four adult offspring from the media tycooon's three marriages likely to tussle for power when the mogul retires (or shuffles-off this mortal coil)  the prince has reason to be concerned about the stability of his multi-million News Corporation investment in one of the world's most influential media companies. Moreover, His Highness must take into account the Deng factor - Wendi of that ilk - a former NewsCorp TV executive and now mother of his two youngest children.

Its a situation not a million miles distant from one of the WWE's Royal Rumble wrestling tournaments in which the last man standing wins, Prince Alwaheed is none too happy about this.

Following elder son Lachlan's decision not to vie for the NewsCorp helm, James (37) returned to the family biz in 2007 and is now chairman/ceo of the Europe and Asia divisions, which include Asia’s Star TV and the company’s four UK national newspapers.

However, it's not a foregone conclusion that James will inherit the dynastic throne, as Rupert has gone to some pains to point out in public. Many onlookers, however,  believe the guileful paterfamilias has every intention of ensuring James' succession. He just doesn't want it taken for granted!

According to a statement on the Prince's Kingdom Holdings website, the princeling and Murdoch senior: "Met in New York earlier this month to discuss economic and investment issues, especially in the media sector [and] a future potential alliance with NewsCorp.”

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: FT.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4998

BBC Trust slaps commercial restrictions on BBC Worldwide

The BBC Truss (oops, error, sorry: Trust) has applied an armlock on the BBC's commercial arm BBC Worldwide, restricting its expansion via mergers or aquisitions. Some cynical industry onlookers see this as a craven cave-in to Clan Murdoch and other commercial rivals who object to marketplace competititon other than on the terms they themselves dictate.

BBC Worldwide, the commercial arm of the BBC, will no longer be able to expand its activities through mergers or acquisitions like it did with travel group Lonely Planet two years ago, it was announced today.

The BBC Trust has unveiled a series of changes to the future commercial remit for BBC Worldwide following an 18-month review that affectively rules out any such deals in the future, unless "there are exceptional circumstances".
A clearer focus has also been placed on securing value from the BBC’s own intellectual property in addition to calls for an exit from any activity that is "not in keeping with the BBC brand".

Today’s announcement by the BBC regulator suggests the corporation’s current extensions outside of its own brands, including its Lonely Planet activities and non-programme-based magazine brands, could be put up for sale in the future.

"...the Trust would not expect to consider a commercial deal of the scale and nature of the Lonely Planet acquisition in future," said Sir Michael Lyons, chairman of the BBC Trust.

"The Trust will want to ensure that BBC Worldwide’s plans for Lonely Planet secure the best value for licence fee payers and will keep its long-term future under review."

In addition, the Trust has supported the Executive’s recommendation to make BBC Worldwide’s activities a "more internationally facing business", citing the BBC's fifth public purpose of "bringing the UK to the world and the world to the UK".

The Trust notes that such activity "must contribute to the BBC's fulfilment of its public purposes as well as the scale of the dividend passed back to the BBC".

Lyons said that while BBC Worldwide is a successful business which brings "both significant financial benefits for the licence fee payer and a tangible boost to the creative economy", the boundaries for activity need to be clearer.

He added: "We're satisfied that these changes will provide much-needed clarity and a greater alignment with the BBC's public purposes, without stifling Worldwide's ability to perform as a thriving and profitable entity."

The Trust launched the review in July 2008 to ensure the BBC's commercial strategy was "properly aligned with the BBC's public service interest" and that its strategy and operations was "duly sensitive" to the concerns of other commercial players in the market.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: brandrepublic.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4941

UK radio industry unveils online player

Britain's BBC and its commercial radio tivals have announced the launch of a standardised online radio player that can stream more than 400 stations. The joint initiative, developed by the BBC, RadioCentre, Global Radio and Guardian Media Group, aims to offer every licensed UK radio station including all BBC radio services.

The player will be available through individual radio station websites and has a standard look and functionality. It will be initially available through desktop computers before being rolled out for smartphones and other web-enabled portable devices.

The unveiling of the radio player follows discussions between the BBC and commercial radio chiefs on possible cross-sector digital initiatives. This is the first joint initiative developed by the Radio Council which was setup in April.

Separately, Ford Ennals has been named the first chief executive of switchover body Digital Radio UK. Ennals, who led the digital TV switchover as the former head of Digital UK, will lead the company setup to help the industry – BBC and commercial radio as well as multiplex operator Arqiva - meet the 2015 target provisionally set out in the Digital Britain report for the upgrade from analogue to digital.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: mad.co.uk
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4923

DD FCC to Study Media Health

The Federal Communications Commission has appointed an Internet entrepreneur and journalist to lead an agency effort focused on the state of media. The point is to assess the media marketplace in challenging economic times “and make recommendations designed to ensure a vibrant media landscape,” according to the announcement.

As newspaper circulation continues to drop, studies from both the Pew Project for Excellence in Journalism and the Columbia Graduate School of Journalism called for a reassessment of the media marketplace both inside and outside of government, including at the FCC. At first glance, it’s unclear whether other kinds of media would be included in the review.

Chairman Julius Genachowski appointed Steven Waldman, the co-founder, president, and editor-in-chief of Beliefnet.com, a multi-faith religious Web site, who was its CEO from 2002 until 2007, when it was acquired by News Corporation. As he heads the effort, Waldman, who worked served as US News & World Report and Newsweek before creating Belief.net, will step down from the Web site and News Corp. and discontinue his blog and the column he writes for Wall Street Journal Online.

Genachowski said Waldman’s print experience as well as his Internet work make him “uniquely qualified” to lead the effort.

“A strong consensus has developed that we’re at a pivotal moment in the history of the media and communications, because of game-changing new technologies as well as the economic downturn,” stated Genachowski, who added that respected entities have called on the commission to assess the issues.

Waldman will join the FCC’s Office of Strategic Planning and serve as senior advisor to the chairman; he will work with commission bureaus and lead a process to develop recommendations to make sure that consumers receive the news they seek.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: TVtechnology.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4869

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