From the desk of Strategic Resources
For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address: 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: XVIV

January, 2009

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In these hyper charged times where news comes in as fast as it becomes outdated, we need a source that can keep track of what matters to us. At ZenithOptimedia we have created Wavelength to apprise all of us of the happenings in three areas i.e. 1. Trends in Digital, Retail, OOH, Consumers and the International Advertising 2. Media & Advertising Research 3. Environment

Also included here are innovations and news that ZenithOptimedia is making across its network globally, under three sections 1. ZO Zone 2. Fast Forward 3. Touchpoints.

Simply click on any of the sections on our snazzy control panel and you will have the latest updates at your fingertips. Wavelength will reach you in the first week of every month so that you have information that leads to insights.

Drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions and comments.

Emerging Trends: Digital

1. MySpace screens Slumdog Millionaire - Jan 21

MySpace has launched a special programme that is sure to make its users the target of much envy. Black Curtain Screenings will allow MySpace users to watch eagerly awaited new releases for free. Hari Krishnan, country manager, MySpace India, says in an official communiqué, "We're giving our users an entirely new experience and the opportunity to enjoy the most anticipated and hyped movies before anyone else. Users don't have to pay for the privilege or scout for passes -- they only need to create a profile on Black Curtain India and take along a printout of the profile to gain entry at the theatre.

Source: Agencyfaqs

2. Beep a new advertising platform on mobile phones - December 18

3. IAMAI conference: Mobile will rule the ad world – Jan 19

The mobile medium has been striving to find a place in media plans, and with more awareness of its numerous attributes, it stands a chance of becoming the most sought-after medium in the times to come. According to Maroo, advertisers are looking for solutions that are non-intrusive, targeted, contextual, integrated, transparent and interactive, many forces were working to make available inventory that could work across platforms -- voice, SMS, WAP and video can be contextually targeted with simple interactive tools.

Source: Agencyfaqs

4. Nielsen: 57 per cent respondents stream ads on the Net – Dec 29

Nielsen, the marketing research firm, has released the findings of an online survey on multimedia consumption and ownership patterns in India. Console video game systems are more popular as 9 per cent of the respondents said they own one, while only 7 per cent respondents said they have handheld video game systems. Respondents preferred playing video games on their computers or portable phone devices as compared to playing games on video game consoles or handheld video game systems. Increased penetration of the Internet has led to a rise in streaming or downloading of audio and video files.

Media items streamed from the Internet include music or other audio tracks (66 per cent), music videos (59 per cent), ads or movie trailers (57 per cent), TV shows or clips from TV shows (46 per cent), full-length movies/ movie clips (42 per cent) and video games (32 per cent).

Source: Agencyfaqs

Emerging Trends: OOH

5. Amul will now 'linger' on Satyam fiasco – Jan 19

The country's bestselling table-butter brand, Amul, is well known for its topical, spoof-based outdoor ad campaigns.Continuing with tradition, Amul has now spoofed the Satyam fiasco, not sparing the chief executive officer, Ramalinga Raju and his alleged fraud of Rs 7,136 crore. The campaign creative depicts a caricature of Raju in the "eye-wiping" pose that was splashed across newspapers and magazines soon after the news broke.

Source: Agencyfaqs

6. Platinum Outdoor helps Idea Cellular 'breeze' into Punjab – Jan 15

Idea Cellular was launched across markets in India with a number of outdoor innovations. The service was launched in Punjab and outdoor was a key element in the media mix used to communicate the evolved 'Idea' in the progressive telecom service circle of that state.

Source: Agencyfaqs

7. Western Railways to get 4,000 LCD screens on trains – Jan 12

Train commuters in Mumbai will now get used to seeing sleek LCD screens displaying content and advertisements in their compartments. OOH media company Hype Integracomm has entered into a private-public partnership with Western Railways in Mumbai to install LCD screens in all of its 67 trains. Apart from being an innovative advertising medium with great reach, these screens will also be a good medium for presenting socially relevant messages.

Source: Agencyfaqs

Emerging Trends: International

8. Most Media to suffer “retrenchment” in 2009 – Jan 3

According to a new report by FitchRatings, the company forecasts that the contraction in output among the major advanced economies will represent the steepest decline since the Second World War, with GDP in the U.S. to decline approximately 1.2%, while inflation is forecast to be 2.7%. Regarding the advertising environment, the Fitch media team is more cautious than most major advertising forecasts, none of which currently predict advertising to be nearly as weak as 2001, reports The Center for Media Research. Political and Olympic spending masked the local market weakness in 2008, but the report says the absence of these revenue sources in 2009 will expose the depth of this weakness.

Source: Radio Business Report

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This tracker has been compiled from external sources and does not necessarily reflect the views of the company.
Links provided will take you to the full articles appended at the end of the file.

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Full Articles

1. MySpace screens Slumdog Millionaire
January 21
Agencyfaqs

MySpace has launched a special programme that is sure to make its users the target of much envy. Black Curtain Screenings will allow MySpace users to watch eagerly awaited new releases for free. The initiative starts with an exclusive screening of the much hyped Slumdog Millionaire on January 23 at Fame Theatre in Mumbai.

Hari Krishnan, country manager, MySpace India, says in an official communiqué, “We're giving our users an entirely new experience and the opportunity to enjoy the most anticipated and hyped movies before anyone else. India has a rich history and a vibrant movie industry. We believe that Black Curtain Screenings will not only engage and excite users, but also provide a powerful platform for movie studios to effectively promote their film.”

Users don't have to pay for the privilege or scout for passes – they only need to create a profile on Black Curtain India and take along a printout of the profile to gain entry at the theatre. Apart from screening the movie, MySpace will be doling out many value additions to the audience, such as interactive games, photo opportunities and an opportunity to meet celebrities.

Speaking to afaqs! about the interesting initiative, Tarun Tripathi, director, marketing, MySpace India, says, “MySpace, as a platform, has always allowed the youth to engage in popular culture. Through Black Curtain Screenings, we are looking to create a unique experience for our users by providing them free access to movies. We not only hope to get many more much-anticipated movies for our users, but we will also try to screen them a day before the public release.”

Though Tripathi refuses to divulge the specifics, he says that the social networking site is in talks with several movie studios to make this entertainment marketing initiative a success. He says that MySpace will aim at screening at least one motion picture per month, and if things go well, the number could rise to two movies per month.

Talking about the mutual benefit aspect of the deal, Tripathi says, “This platform is aimed at enhancing brand and user engagement, and provides a highly effective marketing method for movie distributors. The MySpace India community is a highly creative and culturally aware group of individuals, who provide an exciting pool of target key opinion formers to build discussion and interest amongst their peers about a new release."

MySpace intends to screen its movies in multiplexes in the near future and may also look at cracking a deal with a multiplex chain to make the process more organised.

2. Tata Indicom gets a Second Life
January 20
Agencyfaqs

Tata Teleservices Ltd (TTSL), in partnership with Mumbai based Indusgeeks Solutions, India's first and largest virtual world development and services firm, has announced the extension of its Suno Dil Ki Awaaz brand campaign into the virtual world.

TTSL aims to take the campaign to the virtual world, Second Life, through a marketing initiative comprising an interactive virtual talent hunt competition.

With this move, TTSL lays claim to many firsts: the first telecom operator to have a presence in the virtual world with a mass media campaign; the first to offer a virtual talent hunt, which will invite participation from people all over the world; and the first to have its brand ambassadors, in their virtual avatars, engage with visitors from the Indian subcontinent in an interactive forum.

Other brands that have had a tryst with Second Life include Amul and CRY. Indusgeeks was responsible for the CRY campaign, too.

As part of the initiative, Tata Indicom will create and own an 'island' in the virtual world of Second Life. Users can visit this island, participate in the talent hunt, get a deeper understanding of the company's products and offerings and enjoy the softer properties on the island, including games, songs and other interactive programs.

Lloyd Mathias, chief marketing officer, TTSL, says, "With the exciting Second Life initiative, we continue with our tradition of launching many industry firsts. The digital world is evolving at a fantastic pace – cutting across geographical and cultural barriers – and we firmly believe that the virtual world has a huge outreach potential for businesses.

“As a company at the cutting edge of technology, TTSL always scouts for relevant and innovative technologies and opportunities. We feel our association with Second Life will redefine the concept of outreach and take digital interactivity to the next level, for it will allow Tata Indicom to engage with the growing digital audience in a manner that is relevant to them."

Second Life is an Internet enabled virtual world in which users can create their virtual identities to interact with the virtual identities of other users. Members of Second Life can participate in individual or group activities and create and trade items like virtual property and services. Members have to pay for the space they purchase on Second Life. Second Life is developed by the US based Linden Lab.

Now here are some interesting figures regarding the virtual world. According to Gartner Inc., by 2011, 80 per cent of active Internet users will interact with virtual worlds; by 2010, 20 per cent of global Tier I retailers will have a marketing presence in online games and virtual worlds. As far as Second Life is concerned, it has 15 million registered users and around 1.5 million active/unique users.

Brands such as Coca-Cola, IBM, Microsoft, GE, Nokia, Toyota and Intel have already made their presence felt globally in Second Life.

Mathias lists the opportunities for Brand Tata Indicom in Second Life: “The youth, as a target group, are increasingly walking into Brand Indicom. Though our TG remains the masses in general, we can't ignore the younger lot. So, what better to engage them with the brand than a virtual world in which they can have their own avatars? This will help them take part actively in the brand development and experience process.”

Mathias adds, “The Second Life experience caters to a semi-escapist feeling, too, which we all have longed for some time or the other. As far as the virtual talent hunt is concerned, it will take an 'event based' approach, rather than a 'static build' approach, which is the key to interacting with the community. Other features like the Suno Dil Ki Awaaz Phone Network will allow likeminded people to find each other. This is a unique service designed to enhance the Second Life experience."

Siddharth Banerjee, chief executive officer, Indusgeeks Solutions, says, "We are thrilled to partner with TTSL and create a benchmark initiative. TTSL has demonstrated true thought leadership in the domain of digital marketing by using this interactive, immersive, 3D medium to convey its brand story. Indusgeeks is glad to be partnering Tata Indicom in this first initiative of its kind in the Indian context."

To promote and spread awareness about Tata Indicom's foray into Second Life and engage consumers initially, the brand plans to use the digital medium to a large extent. This will include banner ads on various social networking sites such as Facebook and Orkut, gaming portals and other popular sites. Viral campaigns will be used, too.

The Tata Indicom website will carry a banner ad that helps the user register and log in for the Second Life experience. The brand also plans to tap traditional media by placing tags on its TV ads, as well as other print and outdoor collateral. Indusgeeks will be responsible for the creative execution of all these initiatives.

The campaign will ideally engage the 18-35 year old consumer in Tier I and Tier II cities. As far as the ad spend goes, TTSL officials maintain that the figure for online engagement is a single digit percentage.

It will be worth a wait to see whether Tata Indicom is able to pull off a success story with Second Life, a phenomenon that is yet to grip the Orkut-Facebook crazy Indian youth.

3. IAMAI conference: Mobile will rule the ad world
January 19
Agencyfaqs

If the joke that people engage more with their mobile phones than they do with their spouses is indeed true, then it’s good news for the medium, especially where advertising is concerned.

The mobile medium has been striving to find a place in media plans, and with more awareness of its numerous attributes, it stands a chance of becoming the most sought-after medium in the times to come. Several industry people put forth this point of view at the Mobile Ad Conference, organised at the ITC Grand Central in Mumbai on January 16 by the Internet and Mobile Association of India (IAMAI).

Jai Maroo, director, Shemaroo Entertainment, began with the interesting observation that more than 50 per cent people keep their mobiles within a distance of five feet while sleeping. A person looks at his mobile screen every 11-15 minutes. It's not just a personal medium that engages, but also an in-home and out-of-home medium.

"These reasons answer the question 'why mobile'. Even television, which commands the biggest chunk of the ad pie, doesn't offer these benefits. Advertisers have tried WAP and push SMSes, but are looking at better ways to reach targeted consumers," Maroo added.

According to Maroo, advertisers are looking for solutions that are non-intrusive, targeted, contextual, integrated, transparent and interactive. He cited the example of Google, which features ads relevant to the search criteria.

He said that many forces were working to make available inventory that could work across platforms – voice, SMS, WAP and video can be contextually targeted with simple interactive tools.

The biggest opportunity for an advertiser is SMS and voice. While there are only 14-20 per cent users for mobile content, the penetration of SMS is 90 per cent and that of voice, 100 per cent.

Dhritiman Chakraborty, vice-president, sales, ACL Wireless, said that this “always there” medium has the capability to reach the consumers at a personal level and serve the right ad at the right time. He said the Toyota Yaris was the first successful product launch on mobile – it used a highly engaging mobisode of the television series, Prison Break.

“Someday, mobile will rule the ad world,” he stated, adding that it would be the measurability of the medium that would make it happen. “No readership survey or audience measurement survey can effectively gauge the effectiveness of an ad. They only talk about the effectiveness of the medium. But mobile will be able to address that,” Chakraborty asserted.

Advertisers have an equally important role to play in this. “It is imperative to have great content to hold user interest and get customer eyeballs. Ads need to be subtle, contextually relevant and viral in nature," he added.

4. Nielsen: 57 per cent respondents stream ads on the Net
December 29
Agencyfaqs

Nielsen, the marketing research firm, has released the findings of an online survey on multimedia consumption and ownership patterns in India. In all, 501 respondents, including 409 males and 92 females, from India participated in the survey, and 266 of them were aged below 30 years.

According to the findings of the survey, 94 per cent of the respondents claimed that they own TV sets, out of which only 84 per cent use them. Around 82 per cent claimed that they own a personal computer, out of which 78 per cent said they use them.

The ownership of CD players stands at 70 per cent. Some 65 per cent respondents claimed that they own a DVD player. The usage pattern of CD and DVD players stands at 55 per cent and 49 per cent, respectively. About 63 per cent of the respondents surveyed said they had bought a DVD personally in the past six months, while 59 per cent respondents claimed that they had bought new music CDs.

Console video game systems are more popular as 9 per cent of the respondents said they own one, while only 7 per cent respondents said they have handheld video game systems.

According to the findings, 36 per cent respondents own video and web-enabled mobile handsets, while 67 per cent own mobiles which cannot be used to browse the web or watch a video.

It was also revealed that 85 per cent respondents spent at least some time in an average week listening to music on a computer, portable device or mobile device. About 75 per cent listened to music on CDs, while 63 per cent respondents watched, streamed or downloaded movies on a computer or portable phone/ device.

Respondents preferred playing video games on their computers or portable phone devices as compared to playing games on video game consoles or handheld video game systems. Of the respondents, 59 per cent spent at least some time playing video games on their computer or portable phone devices, while 27 per cent spent some time in an average week on game consoles or handheld video game systems.

Increased penetration of the Internet has led to a rise in streaming or downloading of audio and video files. Media items streamed from the Internet include music or other audio tracks (66 per cent), music videos (59 per cent), ads or movie trailers (57 per cent), TV shows or clips from TV shows (46 per cent), full-length movies/ movie clips (42 per cent) and video games (32 per cent).

Media items downloaded by the respondents include music or other audio tracks (63 per cent), music videos (46 per cent), ads or movie trailers (33 per cent), TV shows or clips from TV shows (30 per cent), full-length movies/ movie clips (40 per cent) and video games (30 per cent).

5. Amul will now 'linger' on Satyam fiasco
January 19
Agencyfaqs

The country's bestselling table-butter brand, Amul, is well known for its topical, spoof-based outdoor ad campaigns. Be it politics, sports, movies, lifestyle or current affairs, Amul has covered them all in its campaigns. Viewers and passers by keep a keen eye on the campaigns, which change three to six times every month, depending on recent happenings.

Continuing with tradition, Amul has now spoofed the Satyam fiasco, not sparing the chief executive officer, Ramalinga Raju and his alleged fraud of Rs 7,136 crore.

The campaign creative depicts a caricature of Raju in the “eye-wiping” pose that was splashed across newspapers and magazines soon after the news broke. The copy reads, ‘Satyam, Sharam, Scandalam’, a play on the devotional ‘Satyam, Shivam, Sundaram’, which means ‘Truth is God and God is Beautiful’.

Rahul daCunha, creative director, daCunha Associates, says, "We conceptualised the idea in 20 minutes after the news of the scam was out and the creatives left for the South Indian market the same day. In Mumbai, the hoardings were put up two days later."

He shares that this campaign has received an amazing response because everyone felt a part of it. "Usually, our Amul campaigns get a quick response and it did this time, too," he says.

Amul recently spoofed the much talked about movie, Ghajini, displaying a caricature of actor Aamir Khan, complete with body tattoos that said, ‘Get Amul’, ‘I Slice Bread’ and ‘I Make Sandwich’.

When Omar Abdullah was recently elected chief minister of Jammu and Kashmir, the campaign read, ‘Omar, Amul la!’, along with a caricature of Abdullah in a ‘shikara’ (a Kashmiri boat).

RS Sodhi, chief general manager, Gujarat Cooperative Milk Marketing Federation (GCMMF), says, "The Amul Topical Campaign on billboards has been the longest continuous running campaign on hoardings. It was started almost four decades ago. The topical campaign gets displayed in all the major cities of India, covering almost all the territories of the country."

Sodhi adds that every topical ad owes its genesis to an event or incident in the country or abroad. Since the frequency depends on the topicality of the issue, the topic may get changed after even just a day if a recent development warrants it.

On an average, around 55-60 topical ads are displayed in a year on hoardings across India.

"The topicals are on local, regional, national or international issues. That’s why some topicals are displayed in select markets and not on a national basis," says Sodhi.

Whether these creatives are changed weekly or fortnightly, whether they are based on national or international issues, the fact is that they are enjoyed by everyone who lays eyes on them. But for Amul and daCunha Associates, it is work as usual. After all, it is their 'bread and butter'.

6. Platinum Outdoor helps Idea Cellular 'breeze' into Punjab
January 15
Agencyfaqs

Idea
Cellular was launched across markets in India with a number of outdoor innovations. The service was launched in Punjab on December 19, 2008, and outdoor was a key element in the media mix used to communicate the evolved 'Idea' in the progressive telecom service circle of that state.

The role of outdoor was to create rapid awareness as well as build a visual continuum across media to create an all-round impact in an innovative fashion, keeping in mind the media limitations in Punjab, especially Chandigarh, Mohali and Panchkula.

Madison Media's OOH agency, Platinum Outdoor, the incumbent agency of Spice Telecom (recently acquired by Idea Cellular), was entrusted with the job of planning and executing the launch in 72 cities in Punjab.
The outdoor comprised three different innovations. First, a 3D motorised windmill innovation was created on Idea's hoarding, promoting windmill projects. The hoarding read, “For the people, by the people”, along with an image of brand ambassador Abhishek Bachchan holding a mobile handset, displaying the Idea service. The windmill was attached to a motor and rotated like a real one. The movement ensured eyeballs for the brand and helped the brand 'breeze' into the state.

In another hoarding, several 'Yes-es’ were arranged in the form of a bridge. Timed neons were used to light up each 'Yes', one at a time.

Another innovation comprised a large LED with an Idea creative fitted at the main utility format in Sector 34 in Chandigarh. This was the first time an LED display was put up in Punjab for OOH purposes.

The overnight brand transition from Spice to Idea was a challenge for Platinum Outdoor, but the idea was executed very well within the expected timelines.

Innovation was the key to breaking the clutter for the brand launch. Thus innovative outdoor was effectively used to grab eyeballs.

7. Western Railways to get 4,000 LCD screens on trains
January 12
Agencyfaqs

Train commuters in Mumbai will now get used to seeing sleek LCD screens displaying content and advertisements in their compartments. OOH media company Hype Integracomm has entered into a private-public partnership with Western Railways in Mumbai to install LCD screens in all of its 67 trains.

The contract is valid for five years and will function on a build-operate-transfer (BOT) basis. Till now, 72 screens have been installed in the first phase. Around 4,000 screens will be installed in all, with six screens in each coach of the nine and 12 coach trains. While Hype Integracomm will earn revenue from the advertisements on the screens, Western Railways will get a licence fee of Rs 35 crore for the duration of the contract.

On January 9, Shamsunder Gupta, chief public relations officer, Western Railways, inaugurated the new facility at the Mumbai Central car shed. L Jaipal Reddy, chairperson, Hype Integracomm, L Vinay Reddy, managing director, Hype Integracomm, and Jignesh Sharma, executive director and chief executive officer, Hype Integracomm, were also present on the occasion.

The network of these screens, called Smile TV, will play a mix of entertainment, information and advertising for 18 hours a day in all the trains. The screens will run contests, display SMS jokes, travel clips and also show non-commercial content such as safety messages and other public interest messages.

To start with, the screens will show recorded content. However, the company is developing solutions for real-time content as well. Apart from being an innovative advertising medium with great reach, these screens will also be a good medium for presenting socially relevant messages.

Sharma informs afaqs! that the screens have gone through various tests and have been made tamper proof, damage proof and absolutely secure. In fact, the company has hired a special agency for the maintenance of the screens.

Discussing the categories which could benefit from advertising on the medium, he says, “I believe screens like these offer a wide reach to advertisers from sectors such as FMCG, financial products, automobiles and lifestyle.”

The TV screens will be seen by the large number of Western Railway (Churchgate to Dahanu Road) commuters, which translates to more than 2.6 million passengers per day – almost 43 per cent of Mumbai’s total suburban rail traffic.

For the record, Hype Integracomm owns media assets in Mumbai, Bengaluru, Hyderabad and Pune. The media assets are in the form of bus shelters, bus bays, green kiosks (tree guards), mobile toilets and public utilities. In Bengaluru, Hype is associated with the Nirmala chain of toilets, a project of the Infosys Foundation.

8. Most Media to suffer “retrenchment” in 2009
January 3
Radio Business Report

According to a new report by FitchRatings, the company forecasts that the contraction in output among the major advanced economies will represent the steepest decline since the Second World War, with GDP in the U.S. to decline approximately 1.2%, while inflation is forecast to be 2.7%.

Regarding the advertising environment, the Fitch media team is more cautious than most major advertising forecasts, none of which currently predict advertising to be nearly as weak as 2001, reports The Center for Media Research.

Fitch's cautious view about advertising is, in part, supported by these underlying conditions:
The 2001 ad downturn was concentrated in national advertising, while the 2008-2010 downturn will include both local and national components. Political and Olympic spending masked the local market weakness in 2008, but the report says the absence of these revenue sources in 2009 will expose the depth of this weakness.

This weakness in local markets will be compounded by national advertising pressures due to the impact of the credit market events that hit while many large national advertisers were planning their 2009 ad spending budgets, forcing many companies to emphasize capital preservation and liquidity, not just earnings growth.

With advertising being one of the most easily scalable fixed costs, some major advertisers could plan to pull back on national campaigns considerably until there is more visibility in the market.

Five of the top 10 advertising categories, or over 40% of the ad mix (according to Advertising Age), will be under meaningful pressure next year, says the report:

No.1 Retail (12% of total)
No.2 Automotive (12%)
No.5 Financial Services (6%)
No.6 General Services (6%)
No.9 Airlines, Hotels and Car Rentals (4%)

And, notes the report, advertising inventory has proliferated (from online and emerging mediums as well as traditional ones) since previous downturns. Media companies are likely to compete more heavily on price in this downturn to fill the vast supply of ad space available.
Advertisers have many more options in the current environment than at any other time for maintaining a presence with consumers while trimming their budgets and scaling back high CPM campaigns, says the report. Even healthy advertisers are likely to use this increased bargaining power to command better price terms and concessions from media companies.
The study offers trends and outlooks for several advertising subsectors in the report, as estimated by Fitch:

Radio has no unionized workforces, and convert a higher percentage of EBITDA to free cash flow giving them more cushion to endure the secular challenges. Listenership is likely to continue to fall, though available inventory should remain relatively stable, and pricing could be up on some advertisers. Internet streaming provides additional day parts to sell. The continued roll-out of factory-installed HD radio into automobiles could provide upside to listenership.

Newspaper industry revenue growth will be negative for the foreseeable future as both ad pricing and linage will be under pressure within each of the four main components of newspaper companies' revenue streams. Fitch believes more newspapers and newspaper groups will default, be shut down and be liquidated in 2009 and several cities could go without a daily print newspaper by 2010.

Few markets will be able to support more than two directories and most markets will eventually only be able to support one book. Another year of accelerated declines in yellow pages advertising could significantly pressure the intermediate-term solvency of the two pure-play incumbent directories companies.

Fitch expects the larger players to rationalize available print advertising inventory through consolidation and closing down titles. Several categories that used to have multiple titles will likely have advertising bases that can support only one major title. With limited catalysts for growth in the core print product, magazine publishers have become more proactive online.
Fitch believes the potential negative effects of increased inventory from digital roll-outs should be tempered by increasing appeal to national advertisers, as well as decreases in price per unit. Cost structures should benefit from digital billboards, as displays can be centrally managed without physical deployment of work crews. Low CPMs and better networked national sales pitches, position outdoor advertising companies to endure the downturn and rebound with the economy.

Cable industry ad inventory has grown significantly over the past several years, causing a deceleration of the decades-long increase in ad dollars, but cable continues to be a targeted medium, at a lower price relative to broadcast and with significant reach. Fitch expects it to continue to gain share from broadcast. Fitch expects the cable networks to continue to embrace VOD and digital strategies, which could provide some modest upside to revenue growth.

Online could be negatively affected by advertisers scaling back experimental expenditures in favor of more proven, performance-based mediums. Search is likely to be more healthy than display. Remnant advertising is likely to be hit by a shakeout in the ad network space. While CPM growth is likely to moderate and could be under pressure, online video and social networking are likely to support growth. Regulatory issues associated with privacy could be a factor as firms attempt to implement more behavioral targeting. Over the longer term, online advertising is expected to rebound from economic weakness and continue to capture share from traditional outlets.

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