News - Advertising

Telemundo Touts Integration Strategy

Mon, 12 May 2008 10:07:38 -0800

Telemundo folded in original programming announcements, a digital initiative rollout and the introduction of a partnership with TV Globo at an upfront presentation for advertisers Monday in New York City. The Spanish-language network touted its “Concept Integration Model,” its new strategy to integrate advertising across broadcast, cable and digital assets. Telemundo also plans to strengthen its digital presence by adding interactive elements like social networking and polls to its streaming content sites for the Telemundo channel and the youth programming channel mun2. The network also formally announced a new ongoing partnership with Spanish-language content provider TV Globo, which will include production of the international telenovela “El Clon” for the U.S. market. “El Clon” will be produced by Telemundo Studios in Colombia, based on the TV Globo format, with the participation of the original novela’s writer, Gloria Perez, and director Jayme Monjardim. Telemundo will have exclusive broadcast rights for the U.S. and Puerto Rico, and the companies will work together on international sales of the novela. Telemundo Chief Operating Officer Jacqueline Hernandez unveiled for advertisers a programming slate for Telemundo and Mun2 that included new telenovelas, sports, movies and specials. “As the only Spanish-language network to air four consecutive hours of original content in prime-time Monday through Friday,” said Ms. Hernandez to advertisers Monday, “Telemundo is in the best position to offer our clients more value for their investment, making us the best destination for concept/product integration and innovative branded entertainment solutions.” 2008-2009 programming on Telemundo: Monday-Friday, Prime-Time Novelas: “Sin Tetas No Hay Paraíso” (Without Breasts, There Is No Paradise) “¿Por Qué Diablos?” (Why the Devil…?) “Amor de Madre” (A Mother’s Love) “Lola Calamidades” (Calamity Lola) “El Juramento” (Secret Lies) Sports: “Futbol Estelar” “Rumbo al Mundial Mexico” “Balon de Oro” Weekend Programming Spanish-Language Movie Events: “X-Men 3: The Last Stand” “Babel” “The Bourne Supremacy” “Superman Returns” “The Departed” Specials: “People en Español: Lo Bueno y lo Malo de la Moda” (Best and Worst Dressed) “El Rey: Tributo a José Alfredo Jiménez (The King: A Tribute to José Alfredo Jiménez) 2008-09 mun2 Programming: “You Said What?” “Vago” “One Nation Under Hip-Hop” “Reventon Weekly Countdown”

Upfront Q&A: Zucker on Going First

Sun, 11 May 2008 20:58:57 -0800

All eyes are on New York this week as the networks unveil their fall prime-time lineups at the upfront presentations and prepare for a blitz in which they sell the majority of their advertising time. NBC, which traditionally opens the week with a big show at Radio City Music Hall, laid out more than a year’s worth of year-round programming lineups to advertisers and the press in April at what it called an “infront” and began selling time earlier than usual—and earlier than its competitors. This afternoon, the mall and concourse at 30 Rockefeller Plaza will become the “NBC Universal Experience,” through which advertisers, agency representatives and members of the press can wander and interact with examples of the company’s broad array of assets. TelevisionWeek National Editor Michele Greppi recently sat down with NBC Universal President-CEO Jeff Zucker in his sunlit 52nd-floor office, chock-full of family photos, for an interview covering an equally broad number of topics. What follows is an edited version of that interview. The subjects ranged from why NBCU no longer considers ratings the chief factor in determining whether a show stays on the air and the complexities of the sales process, to where he expects to see the continued fast growth NBCU craves and why flagship station WNBC-TV in New York is going into competition with an established 24-hour cable news channel. TelevisionWeek: Your “infront” presentation to advertisers is several weeks behind us now. What have you learned? There are always a lot of imponderables and a lot of optimism. Jeff Zucker: It went far better than we could have even imagined. We didn’t know for sure if it was the right thing to do, but we’ve learned it’s absolutely the right way to conduct business. The feedback from the advertisers and the agencies has been overwhelmingly positive. And it’s not about the scheduling. I think this is the point that some of our competitors have missed. It was more about the dialogue that we began with these advertisers and agencies. In this world where it’s much more complicated than just buying a 30-second commercial, the conversation is so much more complicated. The extra time to have these conversations has proved to be invaluable. We have begun writing business, so getting that head start has proved to be helpful. We feel very comfortable with our decision to have gone this way. TVWeek: Are the deals broader or more complex than they would have been in the past? Mr. Zucker: Yes, they are, because it’s no longer just about the 30-second commercial. It’s about advertisers being part of the program. It’s about the digital extension. It’s about the premiere episode. You have to do 10 more things for the same amount of dollars. TVWeek: It seems ironic that the digital and new technology that expands all the possibilities seems to be making it a much more hands-on, labor-intensive process. Mr. Zucker: It is, for the sales force especially. Ten years ago when you were at the networks you picked up the phone and answered the call and booked a :30. ... No matter how strong your shows are or aren’t, that’s not the way it works any more. TVWeek: You announced last week that iVillage will be added to Lauren Zalaznick’s turf as president of Women and Lifestyle Entertainment Networks. Mr. Zucker: That’s her title. I wouldn’t characterize it as a division. That’s her title, which encompasses all the pieces that report to her. TVWeek: Ms. Zalaznick also will oversee Women@NBC, a new cross-brand sales strategy. Mr. Zucker: It’s really a go-to-market strategy. We think we can do certainly as well as anyone in bringing to market a panoply of assets that reach women across all demographic age breaks. When you think about Bravo, you think about Oxygen, you think about iVillage, add in the other assets of the company including four hours of the “Today” show, it is a targeted go-to-market that I think gives us a leg up in the marketplace. TVWeek: It’s hard to know whether the question is, “Why target separately the demographic that drives so much viewing and programming decisions?” or “What took you so long?” Mr. Zucker: Look, sometimes good ideas take a long time to come to fruition. TVWeek: One of the things Ben Silverman talked about was going straight to series commitment without having any surprises. Granted, this is the beginning of the changes in the process, but at this point, “Monk” and “Psych” don’t seem to be holding up well, and Tom Fontana turned in scripts that were much darker than everybody thought they were going to be, so he’s gone. Isn’t part of that always going to be the same as it always was? Mr. Zucker: I don’t know what “Monk” and Psych” have to do with that. TVWeek: It’s sort of a surprise that no one’s changed the schedule. Mr. Zucker: I think that’s the point. Of course this isn’t an exact science. First of all, that was a stop-gap measure that was born out of necessity because of the strike. We’re in an era where—we’ve made a commitment to our advertisers to a schedule. Advertisers have an expectation. It’s not just about the ratings anymore. It’s about our relationship with our advertisers and what their expectations are. That doesn’t mean that we won’t change schedules. Of course we’ll change schedules if we have to, because it remains an inexact science. But we’re not going to knee-jerk change schedules just because the ratings aren’t what somebody else expected them to be. It’s really not just about the ratings anymore. It doesn’t mean the ratings aren’t still important. TVWeek: When you say you’d made a commitment to the advertisers… Mr. Zucker: That they were going to get two dramas there Sunday 8 and 9. TVWeek: … Even if they’re not drawing a significant audience? Mr. Zucker: I’m not saying they won’t change the schedule if they think it’s appropriate. They may very well, certainly by the time this comes out. It’s hard for people to understand us talking about this, because they would say that if we were in first place we wouldn’t be having this conversation. I understand that. Which is why we’re not getting out in front and saying, “Look, we were the ones that led the way almost 15 years ago on the transition to 18-49.” Then eventually the entire industry followed suit. Look, we would also say that we’re no longer bound by, on the network side, the NBC side, by the ratings from September to May as the regular season. We would say that from the top of the mountain, except that people would say, “You’re only saying that because you’re now in first place.” You understand what I’m saying? If we were in first place, I’d want to say it. It’s no longer about September to May. The commitment to our advertisers is for 52 weeks. We are in a slightly stronger position to talk about that next year. Or maybe we should do it the year after, because we have the Super Bowl next year. But we want to get away from this idea that we’ve talked about for so long, that the season is September to May. That’s not the way we want to play anymore. But people will be cynical about our motivation. TVWeek: What’s good about sticking with a lineup that has smaller expectations than it once might have? Mr. Zucker: The advertisers make a long-term commitment to us in marketing their product, and we need to make sure that we’re as committed to them as they are to us. TVWeek: Has your inner voice adapted to what Thursday night lineups look like when the fast nationals come in Friday morning and you can see the 18 to 49s? Mr. Zucker: We only look at the 18 to 49s. TVWeek: But there was a time when you got your socks knocked off by the size of the overall audience, and if you have a bigger audience you have a bigger 18 to 49. Mr. Zucker: The 18 to 49 was larger than it is today. Our expectations are entirely different. Because we’re running it as a business. We’re not running it on who’s winning the weekly ratings. TVWeek: What does that mean? Mr. Zucker: We want to have great shows. We think we do with “Heroes,” and “Law & Order: SVU” and “The Office” and “30 Rock” and “Friday Night Lights,” you know, up and down the line. But we’re managing for margin, not for ratings. So it’s the expense of our shows, the consistency of our shows being on the schedule. It’s not determined by the size of the ratings, because the size of the ratings of a show we cannot afford is not going to do us any good anymore. This is not because we do not have the outsized hits that we once did. This is because we are in a different environment where the difference between the first and fourth or second and third is incredibly minimal. TVWeek: In the old GE world, you were supposed to be No. 1, certainly no worse than No. 2, in your business. Will you be able to do that? Mr. Zucker: NBC Universal, this company as a whole, is doing great. Our cable portfolio is as strong as anybody’s. Our film division is on track for another very good year. Our theme parks are having a very good year. And within the network, which is comprised of entertainment, news and sports, our news division couldn’t be more on fire. It’s probably stronger than it’s ever been, and I know because I worked in it for a long time. TVWeek: When you say stronger, how are you defining that word? Mr. Zucker: From a bottom-line, business-footing standpoint. Our sports division is about to enter an incredibly exciting 12 months between the Olympics, the NFL and the Super Bowl. And then our entertainment division, where we are not No. 1 in the ratings and we’re not No. 2 in the ratings, but we are managing in a way that is incredibly appropriate for today’s environment. TVWeek: Have you got any upfront selling assessments, projections, predictions? Mr. Zucker: No. I’m not going to get into expectations, other than to say we think it will be a vibrant upfront. We think it will be a good upfront. There’s certainly been a tremendous amount of interest in our product from NBC and all of our cable properties. We think it will be quite good, but that’s all I’m going to say. TVWeek: Will you be making any late-night announcements? Mr. Zucker: I’m not going to comment on that. TVWeek: Are the Olympics as scary as they are exciting right now for NBC Universal? Mr. Zucker: The only thing daunting about these Olympics is the size and the scope of them. We’re going to be producing 3,600 hours of coverage. We’re going to be producing more hours of coverage than we’ve ever produced in all the Olympics combined. In terms of the climate, I think actually that’s not scary to us at all. I began my career working on the ’88 Olympics in Seoul. The Olympics are always used in modern days as a platform for people who want to get their political agenda heard. That was the same in Korea in the run-up to those games. It’s really no different here. We’re incredibly confident in the Games. All of our research points to huge awareness of the Olympics in China and very little concern on any part of the viewing public or advertisers about the issues that some have raised in recent weeks. TVWeek: A 10% starting price increase to $3 million for a Super Bowl spot? How was that decided? And how much do you think the last-minute spots will go for? Mr. Zucker: I’m not going to suggest—I don’t know what the last spots will go for. Look, it is clear the Super Bowl is the preeminent program in all forms of popular culture, and the advertising prices are set according to what the market will bear. It’s clear that there’s nothing anywhere in the same league with the Super Bowl, and that’s how the rates get set. TVWeek: When the first-quarter earnings results were reported recently, NBC Universal looked better than much of the parent company. As you look ahead, where are the best opportunities for growth that gives you at least a taste of instant gratification? For example, the cable channels are doing well, contributing a lot, but there’s a lot of infomercial time on the cable channels. Where will there be your quickest growth? Mr. Zucker: I think our growth will continue to come out of cable, both entertainment and news. That’s largely because of the great ratings growth at every one of those networks. USA, Sci Fi, Bravo, Oxygen, CNBC and MSNBC have all experienced terrific ratings growth, and we don’t see that slowing, Then on the international side is really where we see great opportunity, our cable channels around the world. By the end of this year we’ll have almost 100 networks, 100 channels around the world. We see growth coming out of that sector. TVWeek: There have been the rumors that you and CBS are both interested in bidding on The Weather Channel, although everybody seems to agree that [the reported asking price of] $5 billion is just way too much and that the Web site is much more valuable than the channel itself. But it seems the channel would make much more sense for NBC, which has the digital Weather Plus partnership with your affiliates. Mr. Zucker: I’m not going to comment on any specific things that we’re looking at. I think we’ve been aggressive in the last year in continuing to change the portfolio. We added two key international acquisitions, Sparrowhawk Media and NDTV, a stake in the India network. We added the Oxygen cable network. We made two acquisitions for our Local Media Division: LX.TV, which is really, really doing well, and Skycastle. LX.TV I think has been an underappreciated acquisition for us. We’ve done all of that in less than a year. We’re going to continue to transform the portfolio in that respect. I don’t know that it continues at that speed. We launched Hulu in the middle of that, too. We launched CNBC.com in the middle of all that, too. We’re going to look for the right things. I think on the interactive side, things are still overpriced. We’re not going to make silly acquisitions just to make acquisitions. I think the organic growth of things like CNBC.com and NBC.com has really been very heartening. It just shows that there’s an ability to do some of that on our own, as well. When you think about MSNBC.com, which is clearly the No. 1 news and information Web site by a humongous margin in terms of video streams, and then you add to that the great growth we’ve had at CNBC.com in just the last year … it heartens us to think we’ve got a real news and information digital strategy. TVWeek: On the cable side, is there any way to talk about the balance between basic advertising revenues and the time buys? Mr. Zucker: It’s not any more than it’s been. I don’t think the percentage between the two is really going to change much. It really hasn’t fluctuated much at all. It’s just one of the staples of cable. TVWeek: How do you describe where you are with NBCU 2.0? The rumors remain that there’s going to be another level of cuts. Mr. Zucker: First of all, we don’t refer to it as 2.0 any more. I think if we could do it all over again, we wouldn’t use that moniker for it because it only leads to questions like you just asked. So I think it was a mistake to put that label on it. Having said that, first of all, I don’t think there’s ever going to be a time where we’re not going to look at how our infrastructure is designed. That will never end. That doesn’t mean there’s any companywide actions planned at all. There’s not. On the other hand, every division continues to assess its structure continually. I think there’s frankly way too much prurient interest in this, when you think about it from a corporate America standpoint, when you think about what’s going on at investment banks and other media organizations and newspapers and magazines and auto companies and airlines. We’re running a business, just like everybody else is. To think that there’s going to be a moratorium on looking at our infrastructure is just naive. TVWeek: Some of the moves that you have made recently, including putting Miami and Hartford stations up for sale, selling the land in Burbank… Mr. Zucker: That’s an old decision. TVWeek: When do you begin to see the financial effects? Mr. Zucker: What we’ve said all along is that we’re going to transform the portfolio from slow-growth assets so we can invest in the faster-growing assets. It’s why we bought Oxygen. It’s why we bought Sparrowhawk Media and NDTV. Yes, we put Miami and Hartford up for sale, but we’ve invested in Local Media. We invested in buying LX.TV and Skycastle. And we’re going to continue to do things like that. If we’re in a slower-growth business that we don’t see upside for, then we’re going to continue to transform that business. TVWeek: But are there patterns? Might we see another station and then another station put up for sale? Mr. Zucker: We’ve said we decided, in terms of our local television stations, we thought it was important to be in the top 10 markets. Really that’s where we are, other than San Diego, and that’s tied to the Dallas joint venture. TVWeek: Doesn’t it hurt to think about selling Miami, given the trend of the Hispanic population and your ownership of Telemundo and the prevailing wisdom of the efficiencies of duopolies? Mr. Zucker: No decisions are easy and …no decision is made in a vacuum. On the other hand, when we look at Miami, look, it’ll be a great station for somebody. For our strategy, owning the top 10 was the key, and the fact that we have a flagship Spanish-language station in Miami continues to be part of our strategy, especially as it pertains to Spanish-language media. TVWeek: Is this turning out to be a reasonable environment in which to sell these stations? Mr. Zucker: We have tremendous interest in these two television stations. I don’t think there have been stations of this size on the market in a long time, so the interest has been incredibly hot. TVWeek: How far is the Local Media Division from seeing the structure, the shape and having all the pieces in place that you want it to have? Mr. Zucker: The Local Media Division is in an evolutionary period. We don’t just want to be local television stations anymore. The local television station is an incredibly important component of the local media strategy, but it’s no longer the only piece of it. We are in a transitory period. We’re going to continue to transition that division, concentrating on the top 10 markets, transforming each of those television stations into local media plays, not just television stations. We’re really only at the beginning of that transformation. TVWeek: When Pope Benedict was in town, the thought occurred that one of the things we thought digital channels offered was a way to expand programming alternatives. And maybe someone should have said, heavily promoted: You get nonstop looping coverage of the pope. You could have offered it to all the owned-and-operated stations for their digital channels. On that subject, references to WNBC’s digital channel 4.4 remain confusing. Mr. Zucker: This is a great question. You’ve hit on exactly what the transition in local media needs to be. We are in the absolute process of figuring out, refining that strategy. Part of the problem is what does 4.4 mean, does anybody really understand that, what channel is that? To be very frank about it, I think there are six cable systems in New York City. I think we have 6 million homes for 4.4, but it’s on six different cable systems, which means it’s on six different channels. It is complicated. We’re trying to figure that out. But the transition is not just from being WNBC/channel 4 to being several channels. The LX.TV acquisition is going to play a very big role in the growth of Local Media and what they’re able to do. We’re going to transform every one of those channels over time. And that’s not about 2.0. It’s about acknowledging today’s marketplace and the realities that we’ve got to evolve. TVWeek: The grand vision for WNBC-TV was announced last week. One of the key points is a 24-hour hyper-local news channel. Aside from covering the broader tri-state area, what will make it a more attractive alternative to the more established NY1 local news channel operated by Time Warner Cable? Local Media Division President John Wallace said it will launch in November and you will know by second quarter whether your local channel is “successful.” That sounds very ambitious and as if you know how to beat NY1. Mr. Zucker: NY1 is a very strong and very capable outlet. I don’t think that means there’s only room for only one. If there were, there wouldn’t be three cable news networks, two business news networks and five local news broadcast [outlets]. I don’t think we’re going to cede the ground to anyone, though we acknowledge, obviously, a very capable competitor already in the space. There’s room to grow there. What it really is about is acknowledging that local television stations can’t survive with just the traditional 5 a.m., 5 p.m., 6 p.m. and 11 p.m. newscasts. They have to become much more of a full-time content provider. Part of that for us is establishing this 24-hour, seven-day-a-week news service, but it’s also about all of the other things we’re doing with our content with regard to our content: out-of-home, at the gas pump, in a taxi, at a supermarket, on your phone, providing news and information wherever you go. In a much broader sense, it’s just an acknowledgment that local television has got to change. They have to become much more of a full-time content provider. TVWeek: Can you talk about particular roles LX.TV and Skycastle will play in this plan? Mr. Zucker: Already you know about the shows LX.TV is producing, “1st/Look: NYC” and “OpenHouse NYC.” They will certainly be part of the 24/7 news efforts. In terms of specific things they’ll do for that, it’s not that I won’t say, I don’t have any specifics other than that LX.TV will be a part of that. TVWeek: Local station executives say that every day they feel more and more cautious about digital revenues. One of your mantras has been a caution about trading analog dollars for digital cents. Are you at a point where you can see the digital channels making money? Are they in the black? Mr. Zucker: We don’t really run them separately. If we’re going to make this transition, we’ve got to transition the whole thing. WNBC is not going to go away, I’m not suggesting that, but we’re going to have to do WNBC differently in order to make it go with whatever 4.4 is going to be called. We have a second multicast channel here, so we have three channels. We’re going to have to figure all that out. Is it any different, really, than ESPN and ESPN2 and ESPN3? TVWeek: Talk about the recent Green Week, what it added up to, how you see it continuing. Mr. Zucker: We’re committed to green both because it’s the right thing to do and because it turns out to be very good business. We think it’s important to get that message out about being environmentally conscious and conscientious. … Advertisers want to be part of such programming. They pay us a premium to be part of such programming. It’s incremental money with new advertisers. It’s turned out to be both a good idea and good business. So we’re committed to at least two Green Weeks a year across the networks, and we’ll be selling that in the upfronts. TVWeek: Sold as part of a package, separately or both? Mr. Zucker: I think Green will be sold separately. TVWeek: What is the biggest lesson or epiphany since you moved into this position? Mr. Zucker: The sheer breadth of the company and just how many great brands and pieces of content, whether TV shows, films or the new “Simpsons” ride at Orlando, that we have. Until you really have responsibility for all of it, it’s really hard to quantify. TVWeek: Are you able to keep some semblance of a personal life? Mr. Zucker: Yeah. I love my job. I’ve loved the first 16 months and I’m still on the Little League baseball field every weekend, all weekend. [My son’s team, the Scorpions, are] 16-0.

Tough Season Takes Its Toll on Upfront

Sun, 11 May 2008 20:57:59 -0800

As one of the ugliest TV seasons in recent memory lurches to a close, broadcasters are looking to this week’s upfront presentations as a chance to hit the restart button. But instead of anticipation at a new beginning, industry executives find themselves pitching advertisers a slate of new programming miniaturized by the Writers Guild of America strike. With fewer shows in the hopper—some pilots have yet to film—there’s a lot less excitement about this year’s slate of potential newcomers. What’s more, the weakening economy and the business havoc wreaked by the strike have resulted in a massive downsizing of the annual upfront circus. There will be shorter presentations, fewer parties and fewer people flying in from Hollywood. Even in their weakened state, the upfronts will again serve as the kickoff of a multibillion-dollar ad market. That means there will be plenty of preening and posturing all over Manhattan this week as networks do their best to convince Madison Avenue that broadcast TV programming remains a smart ad buy. Here’s a look at how each of the Big Five will make its respective case. Fox Where they stand: Strike? What strike? While other networks have spent the months following the end of the WGA work stoppage coping with lackluster ratings for returning shows, Fox heads to New York a solid first in the ratings in key age groups and total viewers. “American Idol”—still a Nielsen hulk, despite some very real audience erosion—is largely responsible for Fox’s ratings supremacy. “House,” “Bones,” “Prison Break,” “Are You Smarter Than a 5th Grader?,” “Hell’s Kitchen” and shock game show “Moment of Truth” also have contributed, while “Terminator: The Sarah Connor Chronicles” was a consistent performer and has been renewed for a second season. Not all is well at the Murdoch network, however. Fox has struggled with scripted development the past few seasons, failing to launch a zeitgeist hit since 2004’s “House.” What they’ll say: We’re stable—we’re really, really stable. Under scheduling chief Preston Beckman, Fox has fashioned itself as an island of consistency, and that seems unlikely to change. Fox will stress the large number of returning shows on its fall lineup, arguing that it has finally solved its fourth-quarter problem of trying to launch too many new shows in between coverage of baseball playoffs. How they’ll say it: While other networks will be touting their multiple platforms—from cable to billboards—look for Fox to kick it old-school with a near-exclusive focus on the broadcast mothership. This year also marks Kevin Reilly’s first upfront since joining Fox as entertainment president, which means Entertainment Chairman Peter Liguori will have an onstage partner in crime during the upfront presentation. Buzz projects: “Fringe,” a spooky “X-Files”-esque drama from J.J. Abrams, was given a series commitment back in October, and as of late last week, it seemed a good bet to be one of Fox’s new fall tentpoles. Fox also might be ready to bring back Bernie Mac in the comedy “Starting Under,” while half-hour shows “Outnumbered” and “Spaced” have been reported to be in the mix. Beyond the fall, Fox will tease advertisers with upcoming projects from Joss Whedon (the sci-fi action series “Dollhouse”) and Seth MacFarlane (a “Family Guy” spinoff called “Cleveland”). It may tout several other animated shows as well. Bottom line: Advertisers will no doubt welcome the message of stability, but they’ll also be looking for signs that Fox has some sizzle to go along with the steak. CBS Where they stand: Down more than 15% versus last season in the ratings, CBS clearly needs to do better. Entertainment President Nina Tassler was right to diversify the network’s lineup with non-crime dramas; unfortunately, “Viva Laughlin” and “Cane” were the wrong shows. CBS also desperately needs a new unscripted hit. On the plus side, CBS remains a solid second in total viewers with very few craters in its lineup and its new comedy “The Big Bang Theory” has proven a good fit with the network’s Monday sitcom block. What they’ll say: We’re not panicking. Rivals are doing all they can to push the “CBS in freefall” storyline, but the Leslie Moonves-run network can rightly claim that it remains relatively stable. Its crime dramas aren’t sexy, but they still deliver a consistent audience. One or two solid hits will go a long way toward putting CBS back on track. How they’ll say it: Not wanting to cede the multiplatform brand entirely to NBC, CBS Corp. will tout its own digital tentacles at its Carnegie Hall presentation. The broadcast network will still be front and center, but advertisers will be reminded of the company’s new-media, radio and billboard holdings as well. Buzz projects: Jerry Bruckheimer’s “Eleventh Hour,” about a group of super-scientists, could prove to be a good fit behind “CSI” on Thursdays. Also in the mix is “The Mentalist,” if only because it’s from prolific director David Nutter, whose pilot-to-series track record is among the best in Hollywood. Mr. Moonves is also a major fan of the show’s star, Simon Baker. Likewise, Ms. Tassler has been trying to get Geena Davis on CBS for years, increasing the odds that Ms. Davis’ cop drama will get a greenlight. Bottom line: CBS will continue to perform a balancing act, stressing the stability of its crime blotter lineup while trying to hook viewers on a new generation of procedurals. ABC Where they stand: Slowly rebounding after taking a major hit from the WGA strike, ABC’s slate of serialized shows is great when it comes to generating buzz. That strength became a handicap when prime-time production was halted for three months. Audiences are trying to get back into viewing grooves; when they do, ABC will benefit from its roster of relatively young, female-friendly series. Ratings-wise, the network is battling CBS for second place in adults 18-49. What they’ll say: Remember all those new shows that did pretty well last fall? We’re bringing ’em back! It seems like ages ago, but autumn drama newcomers “Pushing Daisies” and “Private Practice” did well out of the gate and will end up among the top 10 freshman shows of the season. ABC will make the case that they can all be successfully relaunched in September. ABC also will bolster its “we’ve got the hits” argument by pointing to the solid performance of new comedy “Samantha Who?” How they’ll say it: ABC is promising a just-the-facts presentation, one that outlines the network’s strengths, while keeping the hype and spin to a minimum (at least relative to other networks). Expect few, if any, stars to grace the network’s Lincoln Center stage. Buzz projects: Game show “Opportunity Knocks,” which takes the game show out of the studio and into contestants’ front yards, is gaining steam. An adaptation of British crime drama “Life on Mars” is virtually on the air, although producer David E. Kelley’s involvement is in doubt. Bottom line: ABC still needs to add more comedies and procedural dramas to its lineup to supplement its strong schedule of soapy series. NBC Where they stand: While NBC has closed the gap with rivals in the ratings, the network still has plenty of holes in its lineup—and not enough big hits. Smart scheduling allowed it to weather the strike well, and a well-stocked lineup of summer originals may pique viewer interest during the warm-weather months. Unlike its rivals, NBC—having already announced its 2008-09 lineup—will use upfront week to hype the broad reach of the NBC Universal empire. What they’ll say: Not much. Rather than a traditional presentation, the network is giving advertisers a theme-park like show designed to show off everything TV that reports to NBC Universal Chairman Jeff Zucker. Word leaked weeks ago that NBC would use the spotlight to officially reveal details of Conan O’Brien’s move to “The Tonight Show” and Jimmy Fallon’s hiring as his replacement. It would be a coup if the network also revealed a plan to keep Jay Leno at NBC after he departs “Tonight” next year. How they’ll say it: Who knows? Even though NBC already has announced its schedule, it’s staying mum about the details of what it’s calling the “NBC Universal Experience.” People at the network compare the event to a theme park attraction. Hopefully advertisers don’t get dizzy or puke during the ride. Buzz projects: All eyes will be on NBC’s untitled spinoff of “The Office,” which could give the network another Emmy magnet—or cripple its most important comedy franchise. NBC executives have long been high on “Kath and Kim,” an adaptation of an Australian sitcom. The network also will test “My Own Worst Enemy,” starring Christian Slater as a suburban dad who also fights crime. Bottom line: If you can’t be first, at least be different. And NBC’s upfront experience will certainly be different. THE CW Where they stand: As The CW’s marketing team might put it, WTF? Despite developing a well-reviewed slate of newcomers last year—think “Gossip Girl,” “Aliens in America” and “Reaper”—The CW just couldn’t find traction among its target audience of young adults. Viewership is down more than 20%, and the network has all but abandoned the idea of developing new comedies. What they’ll say: The strike knocked us down, but don’t count us out. CW executives will point to the network’s ability to turn “Gossip Girl” into a cultural icon, if not a raw ratings hit, as evidence that they’re on the right path, programming-wise. If they’re smart, they’ll also announce plans to air more original programming in the summer and unveil a better marketing strategy. Buzz projects: The blogosphere has been going bananas over the CW’s “Beverly Hills, 90210” spinoff, which is all but guaranteed a series order. The network only has two other scripted pilots in the works. If titles mean anything, “How to Teach Filthy Rich Girls” would seem to have better odds than “Austin Golden Hour.” Bottom line: It’s do-or-die time for CW chief Dawn Ostroff—and maybe the network itself.

Nets Confront Glum Ad Sales Forecast

Sun, 11 May 2008 20:50:54 -0800

Maybe it’s a good thing the broadcast networks scaled back their once-lavish upfront presentations: Media buyers say that when the upfront deals are done, the networks will be looking at less ad revenue this year. “I don’t think anyone’s in a position to really push the price of television right now,” said John Swift, managing director at media buyer PHD. With ratings down, uncertainty over the economy and even a possible actors strike on the horizon, “I don’t think television as a medium is in a position of strength,” Mr. Swift said. Beginning with NBC Monday, the broadcast networks will put on upfront presentations that will be more business-like and sober than in years past. After the presentations, negotiations begin over ad time for next season. The networks usually sell more than 80% of their commercial inventory during the upfront. In an indication of the growing ratings of cable, Turner Broadcast and ESPN also will be hosting presentations this week. The ad outlook this year is indeed sobering for broadcasters in particular. Merrill Lynch projects that, in a best-case scenario, prime-time ad commitments in the upfront will be down 2% to $8.79 billion. Including other dayparts, the broadcasters’ upfront take will be down 2% to $11.05 billion, the brokerage forecasts. Ad prices, on a cost-per-thousand-viewers basis, will rise just 4%. But Merrill Lynch analyst Jessica Reif Cohen says a “bear” case is more plausible, calling for a 14% decrease in broadcast upfront commitments to $7.14 billion in prime time, with prices flat. In either case, Fox is likely to fare best, while The CW is looking at a 15% drop. The networks retain some optimism, however. “I don’t think the sky is falling,” said Jo Ann Ross, ad sales president at CBS. Noting it once appeared the writers strike could kill the upfront, Ms. Ross said, “We’ve come a long way since the fall when everybody was saying the upfront is dead. It certainly is not dead, nor is network television.” While some advertisers may be putting less money in their TV budgets, “They’re putting it somewhere else, and we certainly have enough places at CBS for them to put it.” Like all networks, CBS will be touting its other platforms, from online to outdoors, and offering to help advertisers construct multimedia packages designed to make them stand out. “It has become much more collaborative. They’re not just buying just a regular schedule. Most clients are looking to do cross-platform and extend the message,” said Ms. Ross, noting she had more than 40 requests for multimedia proposals on her desk. Buyers agree there will be more collaboration on multiplatform and integrated marketing deals. “I think there will be an attempt to do much more packaging. It’s going to vary network by network because they all have different resources available to them,” said Aaron Cohen, executive VP and media negotiation chief at Horizon Media. “We’re seeing that the combination of TV with other media works,” said Charlie Rutman, CEO of media buyer MPG North America. “Does it work as well as it used to? I don’t think so. Is it dead? No way.” Mr. Rutman said he believes marketing budgets overall will be down, but the broadcast networks’ share may go up, particularly compared to spot TV, magazines and newspapers. But, he cautioned, pricing of the broadcast portion of those packages will have to be reasonable. “When ratings are down you pay a higher CPM, but this year ratings are down substantially, and the question truly will be how many people are willing to pay how much of a higher CPM for that privilege of being associated with programs,” Mr. Cohen said. “We definitely surpassed the tipping point, which on one side you’ve got must-have upfront TV deals that people have to have,” Mr. Swift said. “On the other side, you’ve got this plethora of media options out there … I don’t think the marketplace is going to tolerate anything more than minimal inflation going forward.” Mr. Swift expects overall volume in the upfront to be down because of the way the economy is impacting big-spending categories such as domestic autos, retail and financial services. Categories such as packaged goods and entertainment may be recession-proof, but the market would need big gains from other categories to stay out of the red, and that’s unlikely, he said. Merrill Lynch calls for cable to see a 5% rise to $8.06 billion in upfront commitments in the best-case scenario, and a 3% decline in the bearish case. “I don’t know if the money coming out of networks is necessarily going to go to cable,” Mr. Cohen said. “We’ve seen a surge in network radio, we’ve seen money go to digital, so there’s not a one-to-one relationship anymore.”

Testing Web Video Economy

Sun, 11 May 2008 20:50:53 -0800

While other networks are placing their digital bets during this upfront on online streaming of their TV shows, The CW plans to tout its original Web content. That’s partly because it took a risky move a few weeks ago when it removed “Gossip Girl,” one of its most popular shows, from the Internet to make it available solely on TV. The network made that controversial decision in an effort to protect its core TV business, and the show’s ratings rose in the first two weeks of the experiment, though they dropped slightly for the third week. However, critics contend that limiting consumer choice in this fashion is bad in the long run, especially for a young-skewing network. For now, though, The CW plans to pitch advertisers on its original digital properties on CWTV.com during the upfront. With its young, Web-savvy audience, The CW’s success or failure in gaining marketer support during the upfront will be a good litmus test for the Web video economy in general as well as for this particular digital strategy. “A lot of networks let you go online and get all the stuff there, and while that works well, our point of differentiation is we will have different stuff in both places,” said Alison Tarrant, senior VP of integrated sales and marketing at The CW. The network does stream most of its shows, with “America’s Next Top Model” and “Gossip Girl” the exceptions. But The CW has been successful in luring advertisers for its original online content. For instance, Macy’s sponsors three Web-exclusive series related to “One Tree Hill”; Verizon Wireless sponsors “Alex Patsavas Gossip Girl Music,” a series with the music supervisor of that show; and Sprint backs a mobile series about “Smallville.” The network began creating original video series during the 2005-06 season. “This way we will incentivize fans to not only engage online but also make our on-air episodes appointment viewing,” Ms. Tarrant said. “The financials of our business are built on the TV screen, but in speaking to how our digital strategy works and is different, digital is important in building an ongoing relationship and making our viewers more loyal and giving them the chance to experience their favorite shows and storylines seven days a week.” In March, CWTV.com delivered 3.5 million streams, up from 1.1 million a year ago, the network said. Ms. Tarrant said the average visitor spends about 15 minutes on the site, representing 47% growth over last year. Unique visitors were 2 million in March, up from 1.8 million a year ago. While the removal of full episodes of “Gossip Girl” online is an experiment, the network is pleased with the early results even though the third episode was a bit off in ratings. The first episode back was the third highest rated of the season and scored 25% higher in women 18 to 34 than the season average of the first 12 episodes. But drawing a connection is short-term thinking, said Kaan Yigit, analyst with Solutions Research Group. “You have two options—follow your consumer online or not. Just ask the music business and now the newspaper business what happens when you don’t.” In a study conducted late last year, Solutions Research Group found the typical visitor to CWTV.com was more likely to visit the site to stream a show than were visitors to the other networks’ Web sites. “With top shows offline, this means a disappointed visitor and, more likely than not, someone that will turn to peer-to-peer sites,” Mr. Yigit said. “Let’s not forget that one in five Americans 12 to 29 regularly use peer-to-peer sites to download TV shows, and those who don’t usually are able to get a copy from those who do. We need to remember that CW’s target group is a generation with 100-plus MySpace or Facebook friends at their fingertips.” In the 12-24 age group, TV accounts for only 40% of video-based entertainment consumed in a typical day, with the balance going to the PC, cell phone, video game or DVD. A TV-only strategy is a limited one, Mr. Yigit said.

Playing the Promo Game

Sun, 11 May 2008 20:50:43 -0800

MRB Productions, which creates spots, teasers and commercials for TV sports programming, will be generating promotions for this summer’s ESPY Awards. In recent years, some sports promos have created more enduring memories for viewers than the games themselves: Moments like Nicollette Sheridan dropping her towel for Terrell Owens during a football game break or discovering that Lance Armstrong is a jerk during a promo for the ESPYs makes a lasting impression. MRB’s clients include ESPN, ABC Sports, NBC Sports and DirecTV. “I have been able to develop a niche in this business because the budgets are significantly smaller than for a series or even a commercial, but everybody sees them, so I’m trying to corner the industry as best I can,” said company founder Matthew Brady. “There really isn’t any forum out there that specializes in the promo business like we have, but that side of the industry is only becoming more important, especially as people are quickly putting these on the Web in the end.” The promos and shorts for these companies can typically cost anywhere from $7,000 to $300,000 to produce, depending on the profile of the tease. That allows a smart company to pull in a multimillion-dollar income from the business. MRB this year dominated the Sports Emmys, sweeping the nominations in the category of production design/art direction. Its four nominees were “The 2006 NFL Draft” on ESPN directed by Rico Labbe; “Monday Night Football” teases for the Washington Redskins vs. Minnesota Vikings and Green Bay Packers vs. Philadelphia Eagles games, both on ESPN; the “Monday Night Football” transformation open featuring Ben Stiller on ESPN; and the “NBA Finals” tease open on ABC, directed by Mark Teitelman. MRB also received two nominations in the category of open/tease, for the Super Bowl XL piece “Oh the Places You Will Go” featuring Harrison Ford on ABC; and an “NBA Basketball Hall of Fame” piece on ABC directed by Mr. Teitelman. Often the key to success has been the company’s ability to cast with nationally recognizable faces including Barack Obama, Pink, Lance Armstrong, Samuel L. Jackson and Will Farrell. “Ninety-eight percent of the time, these guys are not getting paid to do these shorts,” said Mr. Brady. “That definitely helps us keep our costs low, so in return we try to tie their work into something they are out promoting and they are thrilled to get that extra exposure.” After thriving in the promo business, MRB subsequently branched out into television series and film, launching “Free Radio” on VH1 earlier this year as well as documentary film “I Trust You to Kill Me” with Kiefer Sutherland. Mr. Brady is preparing for season two of the improv show, awaiting the greenlight from VH1.

Editorial: Strong Upfront Shows Networks’ Confidence

Sun, 11 May 2008 20:49:53 -0800

It may not be the same kind of upfront week as the television industry has thrown in past years. But it ought to be. Broadcast television networks are facing difficult times. Continued ratings erosion points to an ebbing of the medium’s cultural relevance. The Writers Guild of America strike disrupted production of shows, alienating fans. One of the most influential analysts on Wall Street predicts upfront sales will decline 2% to 14% this year. Last year, networks laudably trimmed the length of their Broadway show-style presentations. But the excitement was there. The glitz was there. Of course, there was lots of news about programming, and the extravaganzas kicked off ad sales. It’s a mistake, however, to consider the upfront as a sales event alone. It’s more. It’s a marketing event for TV. Marketing that isn’t directed to sponsors alone—it’s also aimed at the public. It’s a huge press event that generates headlines and spurs widespread interest in TV. This year, ABC is holding subdued meetings at which the network will roll out its fall schedule. NBC is throwing a different kind of upfront program that will showcase its stars for the consumption of the press. Fox and CBS are hearkening back to the customary extravaganzas, and The CW is throwing a cocktail party. One could characterize the less-dazzling presentations as networks facing facts and adapting to a world where programming cycles and cost awareness militate against big-budget upfront affairs. But strategically, backing off now sends a message of weakness when the message more than ever needs to convey strength. The networks’ parent media companies should understand that creating some sizzle around their broadcast networks is more important than ever. It may be difficult to quantify return on investment in upfront events that pop, but the cost of accelerating broadcast TV’s slow fade is easy to imagine in the long term. Network executives may shy away from throwing upfront events where they don’t have much new news to unveil, fearing the press will ignore them or offer negative coverage. But that assumption ignores a fact of life that entertainment companies now share with news organizations: They both are struggling to keep the public’s attention. If you build the upfront, the press will come, and audiences are more likely to follow.

‘Clickable Moments’ Can Add Up

Sun, 11 May 2008 20:45:54 -0800

Watch out, Google: Internet searching could be as close as your TV’s remote control. With all the time and energy being spent by industry experts trying to figure out which TV ads “work” and how to measure, you’d think TV was some kind of “new” media. For those of us who develop retail television campaigns for a living, the only indication of success that we really care about is the advertiser’s cash register ringing—all other metrics mean little in the end. A very smart group of folks at a firm called Backchannelmedia is putting TV ads to the test, in real time, and in terms of viewer purchase interest. Viewers with a Backchannelmedia software-enabled TV or set-top box are able to interact through their existing TV remote control when prompted by a non-intrusive icon on the screen. The viewer then “bookmarks” that interest and forwards it to a personalized home page on the Web within 10 seconds. The initial launch, now under way, will involve up to 1,000 viewers in the Boston area for a 12-month period. I recently spoke with Backchannelmedia founder Michael Kokernak about this exciting technology: TelevisionWeek: Where is this concept going to take us in terms of the eventual melding of television with the Internet? Michael Kokernak: The TV is a trusted appliance in today’s homes, with professionally produced content and with unparalleled picture and sound, and with the navigation of video content continually improving (via on-demand and DVRs). With the introduction of the “TV click-through to the Web,” today’s television will remain as relevant to Americans tomorrow as it has been for the past 60 years. This concept of passive video search allows you to save your favorite moments from TV, whether it is a song from a new band on “Jimmy Kimmel Live” or the latest New York Times bestseller on “Oprah.” In time, as TV content is increasingly tailored to utilize these “bookmarks” to the Internet, the secure TV return path or “backchannel” will become more important to many TV viewers, and a must-have service, than what we classify at Backchannelmedia as the “stand-alone” Internet. TVWeek: How does this tool help the viewer have a better TV and online experience? Mr. Kokernak: When it boils down to it, there are about 3,000 to 4,000 video content production facilities in the U.S., from cable networks and broadcast stations to syndication companies. The Backchannelmedia experience allows the viewer to sample the best television video content while also being able to “bookmark” specific areas of interest within today’s content to the Internet for a deeper content experience. For instance, now a person could watch “TMZ” and forward via e-mail their favorite TV segments virally to their friends. Backchannelmedia marks the beginning of the concept of “passive video search” on today’s TV platform through bookmarking to the Web. Audience size will still be a primary metric for advertisers, but as more video content is linked to the Web, the value of the existing TV platform will increase and become more relevant to consumers, and audience size will over time be less of a factor in a program’s success or failure. TVWeek: How will viewers be able to access the information they have bookmarked with their TV remote? Mr. Kokernak: It’s very simple, as it has to be, or people won’t use it. At the viewer’s leisure, whether it is immediately or a month after they click on their TV remote, he or she is able to access this information on their own personalized portal on the Web. It takes about as long to set up as a Web-based e-mail account and it is free and at no cost to the consumer with any hardware, unless they opt for an over-the-air set-top box. Pushing the clicks to a robust Web portal allows the user to customize their site to their own visual and communication preferences. For example, a viewer could customize their portal to be able to send out e-mail alerts, SMS text messages and generate RSS feeds containing click information if they’re on the go. TVWeek: What categories will be popular on your remote button? Mr. Kokernak: Everything and anything. Once you open your mind to the bookmarking experience, soon you will discover that virtually any video content can link to a related link on the Web. Soon the vestiges of an interactive television time gone past, riddled with cutting references to “pizza delivery” or the “Jennifer sweater,” will drop off into the background and be replaced by “clickable moments.” In a study recently conducted by the Parthenon Group, nearly half of all TV viewers would use their remote control to forward electronic coupons to a portal on the Internet immediately upon adopting the system. These clickable moments provide a deeper TV experience, something viewers and advertisers have been longing for decades. It is no longer a dream but a reality, and WCVB-TV [in Boston] is currently streaming clickable moments over their broadcast spectrum today. We also asked WCVB President and General Manager Bill Fine why the station and Hearst-Argyle agreed to test the Backchannelmedia technology. Mr. Fine said, “WCVB-TV enthusiastically agreed to the test, believing Backchannelmedia has developed a game-changing technology that marries TV and the Internet to the benefit of our viewers and advertisers. We wanted to be involved on the ground floor, the earliest adopter if you will, working with Backchannelmedia to develop an irresistible advertising proposition for our clients and easy source for viewers to interact with their viewing experience on WCVB.” So maybe we should spend more time watching what the consumer wants from a television message and stop trying to figure out how “engaged” he is in television commercials. After all, the fact that a buyer will click for more information is a much more powerful testament to his buying interest than any indicator we’ve seen so far. Adam Armbruster is a senior partner with Red Bank, N.J.-based retail and broadcasting consulting firm Eckstein, Summers, Armbruster & Co. He can be reached at adam@esacompany.com or 941-928-7192.

MPG’s Barrington to Switch Sides to NBC

Fri, 09 May 2008 10:01:15 -0800

Days before the start of broadcast network upfront presentations, television advertising sales veteran David Barrington is switching sides again. Mr. Barrington, who was hired by media buyer MPG as executive VP, managing director of video investments in January, is expected to join NBC Universal in a senior role under President Mike Pilot and President for Network Sales Marianne Gambelli. An NBC spokeswoman declined to comment and Mr. Barrington couldn't be reached for comment. Before joining MPG, Mr. Barrington had been head of sales for MyNetworkTV. With Mr. Barrington’s departure, MPG North America CEO Charlie Rutman will be in charge of the agency’s upfront negotiations. (Editor: Baumann)

Upfront Bound? Bookmark This Map!

Thu, 08 May 2008 11:00:00 -0800

The annual upfront advertising market may be more bewildering than ever this year, but that doesn’t mean you need to feel lost. TVWeek.com is featuring an interactive Google map that will lead you to all the events, from breakfast press conferences to Carnegie Hall shows. If you’re directionally, temporally or logistically challenged, this map just saved your day. The map, constructed by TVWeek's Dani Lemus, covers events being thrown by ABC, CBS, the CW, Fox, NBC, Univision and Telemundo. Cable networks are also represented, with ESPN and Turner Entertainment events flagged. (Updated 5/08/08 at 11:15 a.m. to add dates of events to map.)
View Larger Map --Greg Baumann

Q1 Cash Flow, Revenues Up at Discovery

Thu, 08 May 2008 10:37:27 -0800

Discovery Communications’ U.S. Networks unit racked up an 18% increase in operating cash flow on a 3% increase in revenues during the first quarter, Discovery Holding Co. reported Thursday. Excluding the results of Travel Channel, which was sold last year to Cox Communications, revenues rose 13% to $491 million, while operating cash flow rose 24% to $247 million. Discovery said that, excluding Travel Channel, ad revenues grew 14% due to higher cash sellouts and higher scatter market rates across most of its networks. The company said digital media revenues were up 113%, due mainly to the acquisitions last year of Treehugger.com and HowStuffWorks.com. “Audience delivery at Discovery's fully distributed U.S. networks (Discovery Channel, TLC and Animal Planet) was generally lower in the first quarter of 2008, compared to the same period a year ago, as new creative management began to implement their brand, development and programming strategies, “ the company said. “Additional marketing investment is expected on a go-forward basis to support original programming premieres across the portfolio, including Discovery Channel, Animal Planet and Planet Green in the second and third quarters of 2008.”

Upfront Sales to Fall 2% to 14%, Analyst Says

Thu, 08 May 2008 09:44:38 -0800

Broadcast television networks' upfront advertising sales will be down this year, posting a drop of between 2% and 14%, a leading Wall Street analyst said. A “material decline is probable given ratings declines, the disruption in the development cycle due to the recent writers’ strike and economic woes,” Jessica Reif Cohen of Merrill Lynch said in a report published Wednesday. Next week, the broadcast networks will meet with advertisers, presenting their fall schedules in what are expected to be less lavish circumstances than in past years. Production disruptions from the 100-day Writers Guild of America Strike, as well as uncertainty about the economy have contributed to the more conservative approach. Some networks this year are eschewing Broadway-show style presentations, which generally mark the start of negotiations to buy ad time for the new television season. In what Ms. Reif Cohen called her “bull case scenario,” the broadcast networks would take in $8.79 billion in prime-time ad commitments during the upfront, down 2% from last year. Including daytime, late night and news, the broadcasters’ take would decline 2% with commitments of $11.05 billion, she said. In prime time, Ms. Reif Cohen projects Fox up 2% to $1.85 billion, but the other big broadcasters taking a hit. She sees CBS off 3% to $2.2 billion, ABC falling 2% to $2.35 billion and NBC down 1% to $1.78 billion. The CW’s total is expected to decline 15% to $560 million. Prices may rise 4% on a cost-per-thousand viewer, or CPM, basis, she said. In Ms. Reif Cohen’s “bear case scenario," upfront spending for the broadcasters in prime time would fall 14% to $7.73 billion. Including other parts of the programming day, broadcast spending would decline 12% to $9.88 billion by her reckoning. Under the gloomier forecast, Fox’s take would be down 12% to $1.59 billion, ABC sales would drop 15% to $2.04 billion, CBS would be down 15% to $1.93 billion, NBC would decline 13% to $1.57 billion and the CW would plummet 15% to $560 million. CPMs would be flat under that scenario. “The key question for whether commitments are really down materially may be sellout,” Mr. Reif Cohen said in her report, referring to ad inventory. “If networks truly believe in a fourth quarter recovery then they may decide to hold back inventory and try their luck in the scatter market,” she said. “Conversely the difficult macro environment could lead the networks to offer more flexible cancellation options for advertisers” to bring more dollars into the market. Ms. Reif Cohen said this year’s situation mirrors the bear markets of 1991 and 2001, when prices were flat, ratings were down and networks sold 5% less of their inventory during the upfront. The analyst said that cable networks appear to be better positioned. In her bullish scenario, the cable upfront would rise 5% to $8.06 billion. In her bear case, it would decline by 3% to $7.45 billion. “While ratings strength and CPM increases would suggest more upside, the economic slowdown could constrain growth,” she said. Syndication is seen as coming in flat in the best case scenario and down 10% in the bearish case, Ms. Reif Cohen said. (Editor: Baumann)

Sponsors Get Actual Assist on truTV

Wed, 07 May 2008 11:06:37 -0800

When your network’s programming is based on real-life action, some real-life consumer testimonials should fit right in. That’s one of Turner Broadcasting’s plans for truTV, the former Court TV, which now uses the slogan “Not Reality. Actuality.” With networks looking for ways to keep viewers tuned to sponsors’ 30-second spots, many are inserting original content into commercial breaks to keep viewers hooked. If the sponsor also gets mentioned during these pod-busting vignettes, so much the better. Turner is calling one of its approaches to podbusting “Actual Ads.” These 30-second vignettes produced by Turner feature real-life consumers talking about sponsors’ brands. Turner executives think the approach will work for truTV, because it’s not offering the kind of reality programming some advertisers hesitate to be associated with. “More and more a lot of what’s considered reality programming kind of falls into a more scripted or contrived genre. What we focus on is really sort of a first-person experience, and we say that truTV really takes you to a place you wouldn’t normally be able to go and gives you that first-person access,” said Tom Winiarski, senior VP and sales manager for Turner Entertainment ad sales and marketing. “We tried to take that and extend that position with the Actual Ads by having real consumers talk about real brands.” The pieces are introduced by an announcer or billboard saying, “Here’s a truTV Actual Ad featuring Brand X,” and they would be followed by the sponsor’s commercial, essentially turning a 30-second spot into a 60-second one. “It’s really trying to extend the advertiser’s message by putting them in an environment in a way that relates not only to their brand, but ties their brand back to our brand,” Mr. Winiarski said. Sponsors pay only for the 30-second spot, not the whole minute, he added. “We’re doing the Actual Ad as part of their overall commitment to the network,” he said. “I don’t think it’s about the math of getting a 60-second [spot] for a 30-second [price] as much as it’s really about trying to extend the partnership for us.” Mr. Winiarski said a few Actual Ads executions are in the works and are likely to start airing over the summer. Another truTV approach to podbusting are “Real Life Stories,” which take scenes from truTV shows to create a vignette that illustrates traits and qualities a brand wants to be associated with. Take a show like truTV’s “Ocean Force,” which focuses on rescue operations by heroic lifeguards. “We cold do a vignette that would focus on heroism or focus on the dramatic action, and we could partner with an advertiser whose brand or whose creative speaks that way, and tie those two together and create a seamless content piece that would be branded for the advertiser,” Mr. Winiarski said. Some “Real Life Stories” executions are expected to begin airing in the summer. This week, truTV launched its Reel Movie vignettes, designed to help studios get attention for their new releases. For 20th Century Fox’s new film “What Happens in Vegas,” truTV has stars Ashton Kutcher and Rob Corddry talking about what it took to shoot a key scene in the movie. That footage, along with commentary from “Vegas” co-star Cameron Diaz, will be turned into a vignette that will accompany more traditional spots for the movie. Turner, like other broadcasters, is always looking for ways to help out the movie studios, who are some of TV’s highest-spending customers. Turner’s TNT runs co-branded promos focusing on the drama of films, with stars talking about what drama means to them. This new approach fits better with truTV’s new branding, Mr. Winiarski said.

Woerz Tunes Up Plans for Networks

Wed, 07 May 2008 11:03:53 -0800

Craig Woerz has always gravitated toward the entertainment industry. For 15 years, he toured with his band, New Brown Hat, after work and on weekends. The band had some success, playing with such major acts as Neil Young and Blues Traveler, and managed to sell 20,000 CDs. His day job was with Tele-Communications Inc. in Connecticut, working in the sales group. His key client was Blockbuster, so it was his job to help get movies sold or rented. Eventually, he gave up the band life to have a family life with his wife. In 2001, Mr. Woerz was at Time Warner when he and a co-worker, Tim Williams, decided to launch a media agency focused on entertainment clients. They called it Mediastorm and today it has offices in Manhattan and South Norwalk, Conn., and a long list of entertainment clients, particularly cable networks. On the list are HGTV, Food Network, the Weather Channel, FX, Speed, NFL Network, truTV, In Demand, WE tv, DIY Networks, Fine Living, Magnolia Films, Fox VOD and Fox Broadcasting. Mediastorm does media buying and planning, employing everything from street teams to network television, Mr. Woerz said. “Because our clients are primarily entertainment, we’re forced to look at the landscape a little more definitively than other marketers and agencies, because it really is our business to know it and break through it,” he said. Often that means seeking an edge for a client by pushing the envelope in the digital space. For example, Mediastorm is involved with interactive tests with Time Warner and Comcast. “Depending on the show that we’re promoting or the opportunity we’re promoting, we will use it more aggressively than other agencies, I’m told, but we will also balance it out with traditional elements,” Mr. Woerz said. Digital’s nice, but TV remains of paramount importance. “TV continues to sell TV,” he said. Mediastorm has recently started to get into the creative end of the agency business, last year setting up a subsidiary called Maude that’s headed by Marc Klatzo, Mediastorm’s director of marketing and creative and a Showtime veteran. That will allow the agency to be even more involved in the communications strategies it develops for its clients, he said. Mr. Woerz landed in the marketing business after his graduation from Trinity College in Hartford, Conn. At TCI, Mr. Woerz’s customers had small budgets, which encouraged him to be more willing to take risks and to talk straight to clients, rather than just saying yes all the time. “Too many agencies these days just say, ‘The client wanted it,’ and you end with a puu-puu platter of a media plan,” he said. He later worked at Cablevision and Time Warner before striking out on his own. Working and playing in the band left little time for him and his wife to do much of anything else. One evening, his wife said she’d like to settle down and have a family, friends and other aspects of a normal life. “I can remember that night,” Mr. Woerz recalls. “I came home. She was on the couch and it was a heart-to-heart discussion about the band. That combined with the fact that the singer left, left me to focus on advertising, and I’m happy it worked out that way.” Now they’ve got two kids, although business occasionally intrudes, with calls from clients on the weekends. Mr. Woerz has a little recording studio at home and he plays now and again, but he says he’s got no other hobbies. “I live my life in a focused way,” he said. “I think down the road, I’d like to travel a little more. But for us it’s about continuing to keep the momentum going.” Who knew? While heading up to visit a client in Manhattan whose office was on the 18th floor, the elevator in which Mr. Woerz was riding dropped 15 floors. It stopped somewhere around the fifth floor. “Lights were out and everything. The speed was crazy, although not fast enough for my feet to come off the ground,” he said. “Since then, I cannot do a meeting above floor 25.”

Chart: Product Placement on Broadcast TV

Wed, 07 May 2008 11:00:12 -0800

Product placement rose 6% in the first quarter during prime-time shows on the broadcast and 11 cable networks Nielsen measures. Placement on broadcast was up 39%, while placements on cable were little changed.

Of the 117,976 occurrences of product placement, Nielsen said, the most prevalent type on broadcast came when a product was placed in the foreground in a shot. On cable, the most frequent form of placement involved wardrobe.

The following chart shows the broadcast programs with the most product placement occurrences.

Top 10 Programs for First Quarter 2008

Program	Network	Total Occurrences
The Biggest Loser	NBC	3,977
American Idol	Fox	3,291
The Apprentice	NBC	1,646
Deal or No Deal	NBC	1,603
Extreme Makeover: Home Edition	ABC	1,011
Big Brother 9	CBS	1,011
CW Now	CW	929
Pussycat Dolls Present	CW	805
America's Next Top Model	CW	574
One Tree Hill	CW	557
Total		15,404

Source: Place*Views, Nielsen’s Product Placement Service. Coverage: Prime-time entertainment programs on ABC, CBS, The CW, Fox, MyNetworkTV, NBC.