Economic woes loom large for some media in 08

Reuters/Nielsen ^ | November 21, 2007 | Michele Gershberg

[Zakeet]

The U.S. media industry is on the brink of a second downturn in a decade, one that could accelerate the divisions between fast-growing targeted advertising and traditional formats aimed at mass audiences.

Since the last advertising recession following the Internet bust in 2000, the world's largest media companies have tried to adapt to deep technological changes, from the rise of high-speed Web use to the spread of portable digital media players like Apple's iPod.

But a deteriorating U.S. housing market has raised fears of a domestic recession that could harm media segments vying for some $290 billion in U.S. advertising in 2008.

Leading media executives and sports commissioners will discuss their strategies at the Reuters Media Summit in New York from November 26 through November 29.

Experts say advertisers need to remain competitive in a tightening market while keeping costs down, making them likely to boost spending in areas more directly linked to commerce, such as Web search queries.

That would benefit companies like Google Inc, Amazon.com Inc and eBay Inc. But television

networks like CBS or NBC and Web companies like Yahoo Inc. that rely on brand advertising could suffer.

[Brilliant]

ABC, CBS, NBC, CNN, MSNBC, and PBS ought to merge into one network.

[Brilliant]

Personally, I don’t see how Google can generate all that income from advertising. Something’s amiss.

[NRG1973]

“”ABC, CBS, NBC, CNN, MSNBC, and PBS ought to merge into one network.””

I thought that they already were...isn’t it called the Democrat Party???

[Zakeet]

Personally, I don’t see how Google can generate all that income from advertising. Something’s amiss.

They do this by steering people who are in the market for a product or service
directly to providers. This is extremely valuable.

When you advertise on, say, a major network you are reaching a mass audience
-- but only a small percentage of the viewers are even going to watch your ad,
and an even smaller portion are going to want what you are trying to sell, and only
a fraction of that number are looking to buy right now.

By contrast, Google is putting your message in front of actual customers at the
exact time most are making a buying decision.

That is why Google is netting more advertising revenue right now than all of the
major networks and newspapers combined.

[SuziQ]

No wonder we hear so much about ‘recession’ in the MSM. Those folks are IN one, and assume everyone else must be, too.

[Drango]

confusion to the enemy.

[stripes1776]

That is why Google is netting more advertising revenue right now than all of the major networks and newspapers combined.

But is this resulting in sales? That is, is there a click through that leads to a sale? This is easy to trace with IP numbers and possibly cookies.

If you have an account with Google, then they probably have a profile of you in a data base: where you live, estimate of your income, your past buying habits, your profession, your hobbies, how old you are, married with kids or single, etc. With a customer profile, they can customize the ads beyond simply what key words you type in a search. This is a more selective targeting. They would be able to charge the highest rate for this type of customized and directed advertizing. But then again, the question is, is this leading to increased sales?

[VOA]

Economic woes loom large for some media in 08

When we hear all the horror stories from the MSM about how awful
the US Economy is (just like before every US election, worse if
a Republican is sitting in the White House)...

...we do have to remember that this time, the MSM is at least
right like a broken clock (correct twice a day).

And yes, the economy of the MSM IS bad. And going to get worse!