Archive for the ‘SMG Favs’ Category

115 Million Guided by 11,000

Thursday, February 18th, 2010

We are all familiar with the challenges in accurately measuring audience behavior.  Anyone who has placed a schedule knows that it takes more and more spots to achieve GRP goals.  Below is an excerpt from an Ad Age article that sums up the state of audience measurement.

Look, we’re in the Stone Age now.  We’re letting 115 million homes be guided by 11,000, which I think in this day and age is ridiculous.  At some point, we are going to take the set-top boxes or DVR info, and at least we have the millions at that point instead of 11,000.  Will some of the data be skewed upscale?  Yeah.  Is there a way of figuring out how to make it more reliable?  Maybe downscale it somehow.  If a company can come up with some kind of metric using DVR data that somehow makes it more reliable across the U.S., you would think they’d make a fortune.

Larry Novenstern
Executive Vice President, Managing Director, NewCast@Optimedia

Are We Ready for Mobile Ads?

Thursday, December 3rd, 2009

This morning I was using an app on my iPhone and while it was loading I was served an ad for townhouses starting at $600k.  While we all have an opinion about $600k townhouses, it made me ponder the benefits of mobile adverting.  To boot when I clicked on the ad it did not even bring to a mobile site.  First the wireless companies deserve credit for not allowing marketers to run wild and ruin this medium like we have done with e-mail.  Do I deserve to be shown an ad on a phone I pay $70/month for and an app I purchased for $3.99?

While I am very pro-advertising, I have to give the thumbs down here.  What benefit did I get from the ad?  It did not allow me a free service, nor was it relevant to my interests.  I guess you could make the same argument for cable and the internet, but at the very least I am getting better programs and faster download speed.  As marketers we need to realize what is at stake, a personalized one-to-one relationship with our audience.  Lets not make mobile ads the next spam.

Did Big Money Equal Big Wins for DCCC in 2008?

Tuesday, July 28th, 2009

In the 2008 election, the DCCC spent $60 million dollars to help the Democrats gain 21 seats in Congress, outspending the NRCC by a 3-1 margin. Did this financial advantage allow the DCCC to spend in more races or spend a lot in a few key races?

When looking at the highest spending races, both parties were effective in different ways. The Democratic Congressional Campaign Committee (DCCC) placed over $1 million dollars on TV advertising in 34 different races, while the National Republican Congressional Committee (NRCC) could only match in 7 of those same races. Strangely enough, each committee won 70% of the races they placed in. Even further, the DCCC also spent $2 million or more in 9 races, losing 4 of them (including NJ-07 and NY-26), despite the NRCC not being able to match those amounts.

GOP incumbents were a major target for the DCCC, going on the offensive in 15 of the 34 races they spent a million or more, while only trying to defend 8 Democratic incumbents, while the remaining 11 were open seats. Meanwhile, the NRCC defended 6 of their incumbents in the 7 races they spent 1 million plus, successfully defending 4 of them. Using the limited resources at their disposal, the NRCC was able to defend the same amount of seats that the DCCC spent $2 to even $3 million in losing efforts in other races. While the NRCC appears to have been more efficient, the DCCC had the ability to take more chances in expensive races, but in the end both sides came away with the same winning percentage.

Republican and Democratic Winning Percentage Chart by Spending Level and Incumbency

Republican

Democratic

Victories

%

Victories

%

DCCC spent $1 mil+

11

32%

23

68%

NRCC spent $1 mil+

5

71%

2

29%

DCCC spent $2 mil+

4

44%

5

56%

Republican Incumbent

6

40%

9

60%

Democratic Incumbent

2

25%

6

75%

Youtube Shows Increase in May 2009 Queries

Thursday, July 2nd, 2009

When Comscore released their May 2009 search engines rankings, Google continues to dominate search with a 65% share, followed by Yahoo at 20% and Microsoft with 8%.  Google increased its share minimally while the others lost share from April to May of 2009.  Google’s increase seems to have been carried by Youtube which experienced a 4% growth in queries. This was only overshadowed by Facebook who experienced a 5% growth.  These trends reinforce the marketing craze surrounding social media and on-line videos.

It will be interesting to see how Microsoft’s June 1 launch of Bing will affect the June rankings.

TV Station Revenue Could Have Major Impact on Pricing for 2009

Thursday, July 2nd, 2009

In a recent MediaWeek article, BIA Advisory Services has lowered its 2009 revenue forecast for TV stations from down 15% to down 17.3% – the lowest annual levels since 1995.

These market conditions make it increasingly difficult for media planners to accurately forecast TV costs.  Industry planning tools such as Spot Quotations And Data (SQAD) are becoming less accurate in planning true costs for 2009. Planners may want to look back to very recent market cost experiences this year and compare these to the projected SQAD costs for the same period.  Once adjustment factors are developed, they could be utilized for projecting forward.

While these are unfortunate times for the TV industry, they are creating opportunities for savvy advertisers.