RBR/TVBR's Media Mix

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Jim Carnegie, Publisher

Tuesday Afternoon February 21st, 2006

Sales & Marketing

Highlights from BIGresearch's February Economic
and Consumer Insights Executive Briefing
This week, we're taking a look at BIGresearch's monthly Economic and Consumer Insights Executive Briefing. From February, today we look at:

RETAIL
With value-priced retailers continuing to add designer wares to their line-ups (Luella Bartley at Target, Stella McCartney for H&M), fashion's available at more affordable prices, which has more consumers thinking about incorporating the newest trends and styles into their wardrobes. This month, 38.6% say familiar fashion labels are important, up from 35.9% in '05. In addition, more than one in 10 (11.3%) say newest trends and styles are important, on a steady rise since '03: In the most fashion-forward department - Women's Clothing - WalMart remains the top store shopped most often with 16.3%. Kohl's overtakes JC Penney for #2 (5.6% to 5.2% share, respectively), while Target (2.9%) and Macy's (2.2%) round out the Top 5.
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Smart cell phone makes major advance in UK tests
The Smart Cell Phone, which The Media Audit plans to use in its new media measurement system, in the USA received a vote of confidence from RAJAR, Britain's industry consortium that oversees radio measurement. "The first series of tests by RAJAR answered any skepticism that might have existed about the capabilities of the Smart Cell Phone as a centerpiece for our new media measurement system," says Bob Jordan, president of The Media Audit.
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Out with the old media ad spend trends;
still in with the new
It has become a mantra in the industry to note that ad dollars are moving away from print, radio and television and into the online world. To no one's surprise, a new report underscores this ongoing reality, reports eMarketer. The 30-second TV spot is hardly in its death throes and radio and print advertising continue to thrive; yet the online world is becoming the arena of choice for most advertisers. Outsell Inc., an information industry research firm reports that the surge of dollars into the online sector continues to grow. Outsell's ad-spending study, published in January, based on a survey for 625 leading advertisers in the US, reveals that in 2006 respondents plan to spend more than 18% of their ad budget online compared with 16% of their budget in 2006 while cutting back slightly for TV, radio and print:

According to a recent story published in the Boston Globe, Outsell reports that approximately 80 percent of advertisers currently use the Internet, and the adoption rate is expected to grow to 90 percent by 2008. "Advertisers could care less about the media as long as it works," said Chuck Richard, vice president and lead analyst for Outsell, in an interview with the Boston Globe. "They have a budget and they want to reach people. But these are seismic changes in terms of traditional media being able to maintain their growth rates. Most of the traditional media are public companies under tremendous pressure to increase growth year after year." As the Boston Globe points out, it is the quantifiable and reduced-risk, pay-per-click model that continues to attract advertisers. What's more, and as a way to address the possible issue of fragmentation, firms such as Google, MSN and Yahoo are extending their brands via distributed video clips, adding user-generated content and into a variety of arenas such as maps and travel. This growing combination of burgeoning online advertising with new forms of distributable content means that the elusive Holy Grail of the 1990s is within reach: sustaining a profitable content-indexing business while aggregating eyeballs.

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PM Media News

McCain to offer
two-pronged approach
to cable reg
There is a great deal of pressure on the cable industry to provide a la carte channel options for subscribers, giving the subs control over both their bill and the content coming into their home. In return, he will attempt to offer participating cable operators regulatory relief from the existing patchwork quilt of local franchising authorities.

More in Wednesday's
RBR /TVBR Morning Epaper.

PM Radio News

Clear Channel
says corner turned
Radio's 800-pound gorilla has bulled through its first full year of LIM with a 6% loss in radio revenue, both for Q4 and for the year - - a loss mitigated by gains in its outdoor business. However, the company is reporting signs that the fundamentals of its LIM initiative are beginning to pay off.