A CYNOPSIS MESSAGE FROM USA NETWORK
USA NETWORK – THE MARKET LEADER
15 TH CONSECUTIVE QUARTER AS #1!
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usanetwork.com SOURCE:Nielsen Media Research. Click here for the full source data.
Cynopsis Media presents:
Upfront 2010 – The Cable
Market 04/07/10 Good morning. It’s Wednesday, April 7, 2010, and this is your second installment of this special five-part series on this year’s Upfront season. Cable Upfront 2010: By Daisy Whitney With a slew of popular and acclaimed shows on their air, it’s good to be a cable network these days. But it’s also possible to get too big for one’s britches and that’s something cable programmers will need to protect against heading into this year’s upfront, especially since ad-supported cable networks experienced a rare 2% drop in 18-49 ratings in the first quarter this year. On the flip side, the dip can be explained away by the Winter Olympics. Plus, cable ratings in general have been on a steady rise, along with Emmy wins and industry respect on a par with broadcasters. Cable was also hit the least hard in last year’s brutal upfront. But cable networks’ biggest strength lies in not being too big, ad buyers say. After all, broadcast ratings have declined partly because they are too broad. And advertisers like niche. “We see lots of big growth from the little guys in cable,” said Natalie Conway, SVP and cable activation director at Starcom. “While we fully support the big broad players, we are also encouraging our clients to move further down the long tail as viewers move down the long tail.” Despite the Q1 ratings blip, she and her colleagues at Starcom do expect cable upfront dollars to rise over last year especially in light of cable’s overall strength for the last several years. Upfront presentations from cable networks started in March and will continue into May. But don’t expect the buying to begin until broadcasters take their turn on stage in May. In fact, most marketers haven’t yet determined how much money they will commit to the upfront. Still, advertisers will likely up their cable spends this year. “Versus last year, at least there is more health to the marketplace,” said Christine Olson, VP and cable activation director at Starcom. “Cable tends to do well because their CPMs tend to be more efficient.” Agencies and brands also have their eyes on some of the new players in the market this year such Oprah’s OWN, slated for a 2011 launch, and Scripps’ Cooking Channel, which premieres in May with Fine Living’s distribution reach of about 57 million homes. They’re also eager to see how Martha Stewart fares on Hallmark Channel, how Travel does under the Scripps umbrella and how Lifetime performs as part of the A&E TV networks. A CYNOPSIS MESSAGE FROM SCRIPPS NETWORKS
What’s Up with Scripps Networks? Everything.
The Fastest Growing Network Group in All Cable, Scripps Networks. Our Brands, for the Life of Your Brands. HGTV • DIY Network • Food Network • Cooking Channel • Travel Channel • Great American Country Source: Nielsen Company. For details, visit ScrippsNetworksAdSales.com. Early Signs of Growth “We are 180 degrees from where we were last year at this time,” he said. “Last year we were in the midst of a terrible time and the market over corrected in last year’s upfront; and now the scatter market has been terrific and options have been low.” Plus, key advertising categories are spending again in a big way, he said. That includes renewed strength from packaged goods, health and beauty, pharmaceutical, beverages, telecom, retail and others, though the financial services sector is still challenged and auto spending isn’t fully back on track. Similarly, Viacom CEO Phillipe Dauman said in March at the Credit Suisse conference in Florida that the scatter market was strong. “As we head into the upfront, we are well positioned,” Dauman said. “I expect the upfront to be completed sooner than last year, and I expect the pricing in the upfront to be significantly higher.” The SyFy is also upbeat about the selling season because of the strength of the scatter market. “It feels like advertisers are going to look to lean into the advantages of the upfront pricing,” said Mark Miller, SVP ad sales. “Volume will be strong and it’ll definitely be a positive marketplace.” The key issues in the market will be pricing and flexibility, he said. Will marketers be ready to lock in buys at upfront prices? That’s where the value equation for cable will come into play. A CYNOPSIS MESSAGE FROM DIRECTV
Let DIRECTV do your upfront planning for you!
We can take your brand beyond the :30 spot with our unique advertising opportunities Interactive Advertising * Exclusive Sports Advertising Every plan comes with America’s most consistent, loyal & heavy television viewers. See all of our ad opportunities at directvadsales.com or contact Erin Daley 310-964-1044 ENGAGE. DELIVER. MEASURE. ™ Both Olson and Conway at Starcom pointed out that cable has traditionally been ahead of the game in offering new marketing strategies. That should continue this year especially as some networks roll out new pricing and marketing programs. At its upfront presentation in March, Syfy introduced a new marketing initiative called the “Syfy Effect.” That means Syfy ads score high on brand recall, engagement and time spent viewing, Miller said. He points to IAG research which found Fox Film’s “Avatar” and Hershey’s Twizzlers had high recall when featured on Syfy shows. Specifically, viewers who watched Syfy’s “31 Days of Halloween,” sponsored by Hershey’s, were 53% more likely to purchase the candy. Since the network rebranded as Syfy last summer it’s added new ad partners such as American Express, Apple, BMW, Choice Hotels, Delta Faucet, Ebay, Office Depot, Pepsico, Shell Oil, State Farm and TD Ameritrade. “Advertisers are looking for return on investment and accountability and this is about how to take a Nielsen guarantee to the next level and engage through media research,” he said. Turner will also introduce new integration strategies during its upfront, Yaccarino said. “Turner Entertainment (TBS, TNT and truTV) will continue to push the boundaries of integrating advertisers into our programming and our network brands.This goes way beyond product integration. You will see an unveiling during the upfront,” she said. Scripps’ new entrant Cooking Channel will come to the market with several integration opportunities for marketers when it launches May 31. That includes “From the Kitchen Of,” a new programming concept designed to show how viewers can create recipes from products from well-known brands, said Karen Grinthal, SVP of Ad Sales at Cooking Channel. “That’s a show that will have integration built in from the get go,” she said. A CYNOPSIS MESSAGE FROM THE ACADEMY OF TELEVISION ARTS & SCIENCES ™
Television has the power to encourage positive change and change lives.
THE TELEVISION ACADEMY HONORS CSI: Crime Scene Investigation Coup De Grace * GLEE Wheels * Grandpa, Do You Know Who I Am? With Maria Shriver * Explorer: Inside Death Row * Private Practice Nothing to Fear * Taking Chance * Unlocking Autism * Vanguard: The OxyContin Express Help honor television with a conscience. For Tickets, click here . Advertisers and agencies say they’re eager to learn more about Cooking Channel and how it complements Food Network. The new network will be more centered on cooking instruction, while Food Network will offer those type of shows but also its more entertainment-centric ones like “The Next Food Network Star” and “Iron Chef.” The new network will also include more coverage of international cuisines and diet and health programming. Cooking Channel will get a big leg up from its sister with Rachael Ray, Bobby Flay and Emeril Lagasse fronting shows on the new network. There will also be several new chefs on Cooking Channel. “There’s an excitement from brands about who new we will be bringing that marketers can align with,” Grinthal said. OWN won’t launch until 2011, but advertisers say they are eager to check out the Discovery-Oprah Winfrey venture. Marketers are also eager to hear about Hallmark’s plans for Martha Stewart. A CYNOPSIS MESSAGE
Upcoming Upfront 2010 Special Editions:
Syndication (4/21), Spanish Language (5/5), Broadcast (5/19) Special Editions are sent to Cynopsis subscribers and available at www.cynopsis.com . Influence Brands and Agencies’ Upfront Buying Decisions. Space is limited. Contact Mike Farina to reserve your advertising! [email protected], 203.218.6480
Later — Cynopsis Ad Sales: Member of Interactive Advertising Bureau (iab) To subscribe to any Cynopsis edition(s) click here . Cynopsis Media LLC All outgoing e-mails are scanned and sent out virus free. Copyright Cynopsis 2010 |
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