Nightly business report

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Nightly business report
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• the advertising industry has blossomed into a
  global powerhouse with spending worldwide now
  exceeding 430 billion a year
• Long gone are the days when a single television
  show and its commercial messages could attract
  more than 70 percent of the audience, as an
  episode of "I Love Lucy" once did.

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• The business model has been built around the
  30-second TV commercial.
• Ten years ago it was 80 percent of our media
  investment. Today that is less than 50 percent.
  It is not that television will continue to
  decrease, but we're starting to use media in
  different ways

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• But most agree a successful 21st century
  marketing strategy requires adding the new media
  into the mix.
• Internet marketing can be complex for all
  involved, but it can also be very profitable.
  Just look at the market caps of Google, Youtube
  and Myspace.

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Part II

• Web advertising jumped 33 percent in the third
  quarter, hitting a record 4.2 billion.
• Eight years after it first went online, Internet
  search giant Google has a market cap of 130
  billion
• Banner ads continue to be attractive on
  content-oriented sites because they can be
  tailored to the audience and because their
  effectiveness can be measured, if advertisers
  take the time to learn the new technologies.

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• Advertisers are also using new technologies to
  spread the word in ways which are more
  word-of-mouth than paid advertising. They go
  online themselves in blogs and discussion groups
  on popular sites like myspace, the social
  networking site which was purchased by Newscorp
  for 580 million. And they plant video of
  products, movie clips, and TV shows on sites like
  You Tube, the fast growing video blog site just
  purchased by Google for more than 1.5 billion.

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• Many cell phones report their location, and these
  will allow for location-dependent ads to be sent
  to customers, asking, for example, for
  information on nearby restaurants, banking
  machines or gas stations.
• Although the new technologies are generating a
  lot of buzz, they draw only 6 percent of total
  advertising dollars and traditional media is
  fighting hard to maintain its market share

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Part III

• ABC-TV puts its prime time network shows on the
  electronic shelves of Apple's iTunes store. It
  charges a fee for each download. CBS puts local
  news from its TV stations on the Yahoo! web site.
  Yahoo! will sell advertisements and share the
  revenue. And CNN, after trying a paid
  subscription-based system for downloading news
  video, removes the fee but begins each story with
  a commercial. After first ignoring and then
  fighting many of the new technologies, the big
  media companies have now come to accept that
  consumers want to be in control. The companies
  are scrambling to find new ways to deliver their
  messages and to sell a total marketing package
  involving multiple delivery platforms.

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• Both the media giants and the advertising
  agencies now realize that consumers don't
  automatically skip marketing messages they skip
  boring ones.
• American Express is a case in point. Always a
  multi-platform marketer, television now demands
  less than half its ad budget. Much is spent on
  direct mail and in providing unique services to
  American Express customers. Where TV is used, the
  messages are designed to stand out from the
  clutter with first class production effects and
  compelling story lines.

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• Some of the oldest forms of advertising have
  entered the digital age. These outdoor billboards
  can change their messages quickly and some can
  respond to requests for information from people
  on the street using their cell phones. Big media
  and advertisers are also placing their messages
  wherever an audience might be found. Sony Music,
  Nissan, Adidas, Toyota and Starwood Hotels are
  just some of the companies experimenting by
  running marketing campaigns in an online game
  called "Second Life," where players create a
  virtual world.

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• 70 billion a year is still spent on television
  advertising and to help cope with video recording
  devices which let consumers skip commercials, the
  industry is looking to measure commercial
  viewership separately from program viewership.
• Selling by yelling is over. In this period of
  time, with the opportunities to see things any
  time you want, the content just has to be really,
  really riveting.