By Georg Szalai
NEW YORK -- U.S. advertising outlay for the year through the end of September is up 4.5% year-over-year, driven by gains in Internet, Spanish-language media and cable TV spending, while network TV is lagging the comparable year-ago results by 3.5%, according to preliminary figures released Thursday by Nielsen Monitor-Plus. [Editor's Note: All four of these ad areas will be important to SAG and AFTRA when they negotiate a new commercials contract in 2006.]
The advertising intelligence service of Nielsen Media Research, which, like The Hollywood Reporter and Back Stage, is owned by VNU, also said spot TV in smaller markets and network radio has shown little movement in 2005 through the third quarter. The survey didn't detail specific ad figures.
Meanwhile on Thursday, Merrill Lynch analyst Lauren Fine cut her U.S. ad spending growth forecast for 2005 from 3.7% to 3.2%. For next year, she reduced her projection from 5.2% to 4.5%.
She cited potential weaknesses in the entertainment and auto spending categories, as well as ad rate pressures in traditional media.
The latest ad reports came just ahead of much-anticipated ad market updates at big media investor conferences organized here by investment banks UBS and Credit Suisse First Boston. Entertainment industry executives also may use the conferences to update Wall Street on latest ad market trends.
"Network TV showed positive growth through the first half of 2005," said Jeff King, managing director of Nielsen Monitor-Plus. "However, the absence of the Olympics in the third quarter resulted in a year-to-date decline."
Internet advertising is up 19.4% for the nine months period, followed by a 16.7% increase in Spanish-language TV and an 11.9% cable TV gain. Spot TV is up 2.5% for the top 100 markets and up 1.6% for markets 101-201.
The top 10 marketers spent $14.06 billion the January-September period, up 1.8% from last year, even though DaimlerChrysler cut back 5.6%, according to the latest survey. Media titan Time Warner shows up as the fifth-largest marketer in the report, having increased spending 15.5% to nearly $1.21 billion through September. The Walt Disney Co. is ranked ninth with an 11.2% spending decline to $896 million.
Among the top 10 product categories, most have increased spending with the exception of local auto dealerships and department stores. Motion picture spending is up 1.2% at $2.61 billion as of Sept. 30, according to Nielsen.
Nielsen's Product Placement tracking service also "continues to show significant growth in the integration of product occurrences in primetime broadcast network programming," the company said. The top 10 brands in the product placement category totaled 12,445 occurrences through the third quarter of the year. The top 10 programs with product placements featured 27,244 occurrences through September.
NBC's "The Contender" ranked first with more than twice the placement hits as second-ranked "American Idol" on Fox. The shows, neither of which is currently on the air, had 7,514 and 3,497 product occurrences, respectively.
Products seen on those shows also led the charge. Coca-Cola Classic was the brand featured most often in the product placement category with 2,818 occurrences, followed by Everlast Apparel and Everlast Sporting Equipment.
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Georg Szalai writes for The Hollywood Reporter.
www.backstage.com
Saturday, December 03, 2005
Merrill Lynch gives conservative advertising forecast for 2006
New York—Advertising spending is forecast to grow 4.5% in 2006, according to Merrill Lynch’s “Advertising & Marketing Services: Annual Advertising Update by Industry” report.
That is a decrease from Merrill Lynch’s previous prediction of 5.2% growth for next year. Its 2005 forecast was also downgraded, from its original prediction earlier this year of 3.7% growth, to 3.2%.
Merrill Lynch said if direct mail is excluded, 2005 growth would be a mere 2.3% and that growth next year would be 4.5%.
Uncertainty and the proliferation of measurable media are among the factors cited for the conservative outlook.
“Along with corporations’ cautious attitude towards ad spending in an uncertain environment, we think the emergence of the Internet and other newer forms of marketing is allowing advertisers’ dollars to work harder with more measurability,” according to the report.
—Carol Krol
www.btobonline.com
That is a decrease from Merrill Lynch’s previous prediction of 5.2% growth for next year. Its 2005 forecast was also downgraded, from its original prediction earlier this year of 3.7% growth, to 3.2%.
Merrill Lynch said if direct mail is excluded, 2005 growth would be a mere 2.3% and that growth next year would be 4.5%.
Uncertainty and the proliferation of measurable media are among the factors cited for the conservative outlook.
“Along with corporations’ cautious attitude towards ad spending in an uncertain environment, we think the emergence of the Internet and other newer forms of marketing is allowing advertisers’ dollars to work harder with more measurability,” according to the report.
—Carol Krol
www.btobonline.com
Friday, December 02, 2005
Blockbuster Brands Allocate 49% of Marketing Budget to Advertising
RESEARCH TRIANGLE PARK, N.C. — The average blockbuster brand allots 49% of its budget to fulfill advertising needs, according to a new report from Cutting Edge Information "US Pharmaceutical Launches: Marketing Spend and Structure" ( http://www.uspharmalaunch.com/ ).
Blockbuster brands, drugs forecasted to have peak annual sales of $1 billion or more, tend to grant a larger percentage of their budgets to advertising than mid-level and niche drugs. The average mid-level brand allocates 29% to advertising, while niche products only spend 17%.
This spending disparity is directly related to the size and nature of each brand's market. Most blockbuster brands, for example, target a mass-market audience, while most niche brands serve specialty markets not well-targeted by traditional advertising.
The brand classes rely on different marketing functions to fulfill their specific marketing needs, thus they allocate funds according to those needs. For blockbusters brands, advertising appears to take priority. Thought leader development is high on the mid-level list of priorities, as a lot of effort is put into influencing the brand's target medical audience. Niche brands, on the other hand, spend 55% of their marketing budgets on brand activities, such as product profile development, packaging, and management of market research.
"Each drug has its own unique fingerprint, complete with various brand challenges, yet distinct patterns emerge among brand classes," said Research Team Leader Eric Bolesh. "Regardless of projected peak annual sales, all brands invest some baseline amount in a core set of activities required to move a brand toward market launch."
"US Pharmaceutical Launches: Marketing Spend and Structure," available at http://www.uspharmalaunch.com/ , includes 18 in-depth brand profiles complete with US marketing resources. To understand resource patterns and market forces that affect various drugs, Cutting Edge Information studied brands from companies of different sizes and backgrounds, including Eli Lilly, Johnson & Johnson, Genzyme and Millennium.
To view a summary of this report, visit http://www.uspharmalaunch.com/ . For more information on this report or to learn about other Cutting Edge Information research, contact Eric Bolesh at Eric_Bolesh@cuttingedgeinfo.com or +1-919-433-0209.
Source: Cutting Edge Information
CONTACT: Eric Bolesh of Cutting Edge Information, +1-919-433-0209, or
Eric_Bolesh@cuttingedgeinfo.com
Web site: http://www.uspharmalaunch.com/
http://www.cuttingedgeinfo.com/
Blockbuster brands, drugs forecasted to have peak annual sales of $1 billion or more, tend to grant a larger percentage of their budgets to advertising than mid-level and niche drugs. The average mid-level brand allocates 29% to advertising, while niche products only spend 17%.
This spending disparity is directly related to the size and nature of each brand's market. Most blockbuster brands, for example, target a mass-market audience, while most niche brands serve specialty markets not well-targeted by traditional advertising.
The brand classes rely on different marketing functions to fulfill their specific marketing needs, thus they allocate funds according to those needs. For blockbusters brands, advertising appears to take priority. Thought leader development is high on the mid-level list of priorities, as a lot of effort is put into influencing the brand's target medical audience. Niche brands, on the other hand, spend 55% of their marketing budgets on brand activities, such as product profile development, packaging, and management of market research.
"Each drug has its own unique fingerprint, complete with various brand challenges, yet distinct patterns emerge among brand classes," said Research Team Leader Eric Bolesh. "Regardless of projected peak annual sales, all brands invest some baseline amount in a core set of activities required to move a brand toward market launch."
"US Pharmaceutical Launches: Marketing Spend and Structure," available at http://www.uspharmalaunch.com/ , includes 18 in-depth brand profiles complete with US marketing resources. To understand resource patterns and market forces that affect various drugs, Cutting Edge Information studied brands from companies of different sizes and backgrounds, including Eli Lilly, Johnson & Johnson, Genzyme and Millennium.
To view a summary of this report, visit http://www.uspharmalaunch.com/ . For more information on this report or to learn about other Cutting Edge Information research, contact Eric Bolesh at Eric_Bolesh@cuttingedgeinfo.com or +1-919-433-0209.
Source: Cutting Edge Information
CONTACT: Eric Bolesh of Cutting Edge Information, +1-919-433-0209, or
Eric_Bolesh@cuttingedgeinfo.com
Web site: http://www.uspharmalaunch.com/
http://www.cuttingedgeinfo.com/
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