Latest Media Value Plays
CURRENT MEDIA OPPORTUNITY TRENDS
Advertising, and media specifically, has been hit by the recession bug, but it appears to be turning the corner. Before it shifts into overdrive, we’ve compiled a quick snapshot of what Applegate Media Group is seeing in terms of latest trends and areas of opportunity.
National TV: Price opportunities somewhat limited – requires creativity. In general, they’re selling 1st quarter scatter ad inventory at rates between 20-25% above upfront pricing.
Network Radio: Reasonable opportunity pricing exists with ample available inventory.
Satellite Radio: Favorable pricing has been secured lately and inventory is relatively plentiful.
Network Cable: As is the case with National TV, cable networks are also experiencing a strong 1st quarter scatter market which is expected to continue into Q2. Broadcast changes to the 10PM time slot appear to have driven viewers to cable – also contributing to their strong quarter and fewer pricing opportunities.
Local TV: Quite varied on a market by market basis. Top markets of New York and Los Angeles appear to be gaining momentum but are still down overall. Categories that appear to be driving the activity are Automotive, Fast Food, Consumer Electronics and Telecom.
Local Radio: Typically, 1st quarter presents terrific rate opportunities for spot radio and this year is no different. While it varies by market, there are some value plays out there now.
Outdoor: Inventory is relatively open as evidenced by shorter lead times required to secure premium placements.
Digital Search, Display & Email: There are opportunities in early 2010 but there are also reports of increased demand in some categories and projections that advertisers are looking to invest further ahead than most did in ’09. Recent J.P. Morgan predictions are that digital display ad spending will surge in 2010 and CPMs will rise by approximately 5%.
Consumer & Trade Magazines: Recession hit this group hard. Inventory remains open with ample avails at competitive pricing.
Newspaper: While inventory remains open, not as competitive with pricing as we believe they should be. That tune has been playing out for decades however!
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Friday, January 22nd 2010 at 11:57 pm |
Digital is a strong option certainly, but in terms of greatest value based on current market conditions, the most significant opportunities we see are with magazines.
Friday, January 22nd 2010 at 10:08 am |
With the massive increase in broadband use in the home digital marketing seems to be a strong option for small companies as well as larger ones.