PMIRRG Announces Print Readership Tender

After being put on hold earlier this year, due to the economic downturn, The Print Media Industry Research Review Group Incorporated (PMIRRG) has announced that it is seeking research companies to tender for New Zealand Print Media Readership measurement. The period of the contract will be for a minimum of 5 years and will include consumer insights and media engagement research.

The process to get to tender has been a long one. Over the last 18 months PMIRRG, who encompass representation from advertising agencies and magazine and newspaper publishers; has been investigating international best practice into media research, innovations and technology and likely changes to customer needs over the next 5 to 10 years.

Official print readership research is currently conducted by Nielsen Media Research. 12,000 people are interviewed, face to face, on a quarterly annual rolling basis. Readership is measured via masthead recognition.

Alternative readership research is provided by Roy Morgan. Morgan use a combination of phone interviews and leave behind questionnaires to gather information, because, as the second player and in a market the size of New Zealand, the cost of conducting face to face interviews is prohibitive for them. Unlike Australia, where Roy Morgan use both recency (cover shot of most recent issue) and through the book (content within the publication) to gather information, locally readership data is gathered via a list of the researched publications being read to the respondent.

By way of a brief history lesson, Nielsen has long held the readership contract in this market. Questions about methodology Nielsen use to collect readership data were originally raised when Morgan came into the market offering an alternative approach (that being used currently in Australia, where they own the readership currency).

More recently, the changing face of media consumption, most notably in the digital space means that a key requirement is to future-proof research and adapt as required. This is an issue specifically for newspapers, who have embraced on-line publishing formats as a way of attracting younger readers whilst traditional newsprint circulations crumble. Publishers will seek to keep up with their consumers evolving needs, so the potential for unknown alternative formats, for example “electronic paper” or versions of Amazon’s Kindle, to launch in New Zealand will also need to be allowed for.

While Nielsen and Roy Morgan are the two main contenders in this market, so would seem to be the front runners, Barry Williamson, Consultant (non-voting) to PMIRRG, believes up to 7 companies, both local and international are likely to tender, in line with recent Australian experience.

Ultimately, current readership measurement has issues. It lacks dynamicism, there have been ongoing questions surrounding both Nielsen's and Morgan's methodology and it is not reflective of large scale moves by mainstream publishers into digital formats. Quarterly reporting means that there is a significant delay between research completion and availability to the advertising market. There is no allowance for daily variances in readership with newspapers, and an inability to determine the real impact of significant events or appealing cover images to readership. The flow on means print media is planned on the basis of averages, without the confidence of, for example, daily television ratings. This makes it difficult to ascertain advertising success.

Expressions of interest are required by the 13th November. The tender process will progress from there. Carat welcome this review, and look with interest to the outcome.

For further details, see the PMIRRG press release, or contact your Carat representative.

Update on TVNZ Commission Changes

In my previous comment on this matter dated 1 October 2009 I noted that TVNZ had not formally made any announcement about a corresponding drop in rates to match the advised drop in media commission from 2011. In my absense on leave last week TVNZ did formally send a letter to agencies announcing that they would be making a drop in media rates that would neutralise the effect.

In theory this should provide comfort to advertisers that the cost effect of the commission reduction should now not be an issue. However having, in my time at TVNZ as Sales Director for a number of years, had responsiblity to deliver many a ratecard to the market I know that in practice it is possible to manage the pricing across the ratecard to drive small improvements in yield without too much visibility. We would expect TVNZ to plan subtle management of 2011 pricing strategy to achieve a small improvement in yield and gain some advantage from the commission reduction. It would not be to the extent of an overt "hold" of the benefit of the full reduction in commission.

So what does this mean? As 2011 ratecard comes to market evaluation of TVNZ's TV audience versus rate position will need to be interrogated extremely closely to look for any evidence of disproportionate increase in audience CPT's relative to audience and market demand trends.

At the end of the day we work in a demand driven market and whatever TVNZ does with its ratecard will be subject to what the market can bear. If the result of TVNZ's reduced commission sees ratecard pricing that delivers CPT increases that do not reflect its audience performance and demand in the market for its product they will struggle to secure any advantage by taking this action.

In the interim Carat's approach, as we work with clients business requirements, will be to investigate opportunities very closely with those media companies that have not at this stage indicated a reduction in commission. Where appropriate we will make recommendations that may see a shift in media investment in their favour. Ultimately of course performance objectives must take precadent and we would not recommend driving investment away from TVNZ if it is going to hurt the performance of client schedules.

There will also be a need, where appropriate, to discuss moving to fee based structures as an alternative to straight commission linked structures. As we enter 2010 agencies and clients throughout New Zealand will be engaging in such dialogue as a result of TVNZ's move.

Ultimately however we are confident in protecting best value for our clients through smart analysis, negotiation and trading regardless of TVNZ's move and will work in clients best interests as this progresses.

TV3/C4 2010 Programme Launch

TVWorks launched its 2010 programming line-up on Wednesday morning to a full house of media planners and buyers. Kelly Martin, TVWorks Head of Programming noted that this was the first time TV3 and C4 new season programming had been launched together, reflecting the new integrated approach the network is taking across the board with these channels.

The tone of the presentation was set by hosts, John Campbell and Dai Henwood, with Campbell particularly talking up network strength in local content production. An interesting angle, given the lack of local focus in a show reel. To be fair, many of the shows are returning (What’s Really in Our Food, 7 Days, Pulp Sport, Outrageous Fortune, etc) so are well known by media types, but the lack of attention paid to Bro'Town creators, Oscar Kightly and David Fane's, new show Radiradirah, was surprising.

Instead the focus of both Kelly Martin’s synopsis and the reel itself was on new and returning international series and movies, kicking off with C4 content.

C4 is evolving from music channel, to be re-defined as a “general entertainment channel with a special youth focus”, targeting 15 to 39 year olds. The programming mix has grown to include drama (24, 90210) alongside established comedy (South Park, 30 Rock) and music programming (Select Live). Of particular note is the shift of high rating sci-fi drama, Heroes, from TV3 to C4, signaling TVWorks intent to grow C4 into a serious contender. On the other hand, Heroes disappointing ratings in the US could have moved it to second tier status, and so off TV3’s peak schedule.


C4 New Season Winners:

• The Cleveland Show – The Family Guy spin off (cartoon) has been renewed for 2 full seasons in the US and has been rating favourably there.

• Sons of Anarchy – Season two launched on Fox (US) in September, and has been reaching record numbers of men 18-49.
  

C4 New Season Losers:

• Melrose Place – The much hyped remake, starring Ashlee Simpson, is failing to deliver Stateside. May not make it to season 2.

• Parks and Recreation – Despite having the same producers as The Office, this mockumentary comedy series is rating poorly in the US.

Kelly Martin’s key message for TV3 was consistency. Their goal is to offer strong programming throughout the year, rather than frontloading programming into the first 8 months (a pointed reference to her TVNZ counterpart perhaps?). The foundation of this year’s schedule is in returning shows. The CSI franchise is still going strong, alongside House, News and Current Affairs, The Simpsons, Underbelly and the local content outlined above. Enough content to ensure less reliance on movies and untested new series.

Tv3 have been clever enough to secure two of the best new shows from the States in NCIS: Los Angeles (starring Chris O’Donnell and LL Cool J) and Modern Family, described by one media commentator as “the biggest new hit of the season” and a “bona fide hit” respectively.

TV3 New Season Winners:

• Modern Family – Renewed for a second season

• NCIS Los Angeles – Renewed for a second season

• The Good Wife – Starring Julianna Marguiles and Chris Noth, this has been rating well and has been renewed for a second season in the States.

• Glee – Is expected to gain Emmy attention.
  

TV3 New Season Losers:

• Three Rivers – “the cancellation clock is ticking” (Mediaweek)

• Trauma – despite good ratings for NZ actor Cliff Curtis, this show has not been a ratings star.

Overall, it was fairly much as we would expect. A high number of well established local and international shows, underpinned by a few new ones. Generally a low risk strategy, although one would question how long people will want to watch CSI and House. Additionally, the TV3/ C4 integrated programming approach is still to be well established and so is yet to be fully proven, although initial signs are good.

The first of the new season will launch before Christmas, with Glee likely to be the first cab off the rank in the America’s Next Top Model slot.

To view the show reel, and for more information on these shows, go to http://mediaworkstv.co.nz/, or contact Carat New Zealand for advertising and sponsorship opportunities.

Next Generation Media Quarterly - October 2009

Check out this presentation put together by Dan Calladine, Head of Media Futures - Isobar UK. The information is based on the last three months and what you need to know the world of media moving forward:

Next Generation Media Quarterly - October 2009

View more documents from Dan Calladine.

Google's Share of Global Internet Traffic

“Five years ago, Internet traffic was, for the most part, managed by tier 1 providers like AT&T, Verizon, Level 3 Communications, and Global Crossing, all of which connected to thousands of tier 2 networks and regional providers. Today, that has changed. Now, instead of traffic being distributed among tens of thousands of networks, only 150 networks control some 50% of all online traffic. Among these new Internet superpowers, it's no surprise to find Google listed. In fact, the search giant accounts for the largest source (6%) of all Internet traffic worldwide.

This data comes from a new report put out by Arbor Networks, who has just completed a two-year study of 256 exabytes of Internet traffic data, the largest study of global traffic since the start of the commercial Internet in the mid-1990's.”

Read more here.

iProspect New Zealand Wins MySpace

Just three weeks after launching in New Zealand, iProspect has won the MySpace account.

The business was won without a competitive pitch and will involve search and digital strategy through iProspect and planning and buying, through iProspect’s sister agency, Carat.

“MySpace is a progressive digital brand that requires like-minded digital and media thinking to continue to flourish in the burgeoning NZ market. Carat and iProspect seemed the natural fit for MySpace at this time – and we’re very much looking forward to working together,” said Susan Carlton, Head of Business Development, MySpace New Zealand.

“This win is a vindication of the strategic developments at Carat and the investment made in launching search specialist company iProspect. We are very excited to win MySpace and look forward to doing great things with Susan and her team,” said Ryf Quail, Director, iProspect.

YouTube Launch New Media Analytics Tool

YouTube has launched a new service called Insights for Audience. This video analytics tool takes your audience deomographic on YouTube and compares it with their own demographics. The difference between this tool and previous YouTube insights tool is that the analytics for Insights for Audience are based on the whole YouTube audience, versus only specific videos. After setting up a search query many different insights can be found on the kind of videos the target group watches. This tool can also be used to discover which video categories are popular among the target group.

Media agencies can use this tool to discover which type of video YouTube users search for based on their country, age, gender and interests. The tool then displays the most popular videos for the audience.

Comparing users that are between 18 and 34, from USA, Australia and Great Britain and who are into Telecommunications showed that users watch 17.2% more Telecommunications videos than the average YouTube user.

Click here to try Insights for Audience for yourself.

Read more: http://www.antoniothonis.com/2009/launch-of-youtube-insights-for-audience/

Sky becomes available on the XBox in the UK

Sky and Microsoft are joining forces to deliver live television and video on demand to Xbox game consoles. There will be up to 20 live television channels available, with hundreds of movies, sports, entertainment and documentary programmes available on demand. It provides an easy way of viewing Sky Player programming, previously available on the personal computer, on the television screen, allowing users to enjoy television in a second room without the need for an additional set-top box. It will also be possible to get Sky channels without a satellite dish or set-top box, on a separate monthly subscription.

Read more: http://informitv.com/news/2009/10/02/skyandmicrosoft/

Carat wins the cup!

The Media Agency Go-Kart Cup took place on Friday 2 October at Auckland Raceway. The annual event sponsored by Metservice.com saw Brad MacDonald and Jon Allen take first place and the cup awarded to Carat, after one hour of driving. Well done guys!

iProspect Launches in New Zealand

iProspect, the world's leading search marketing agency, steps up in Asia Pacific region, and forges ahead with global expansion.

Peter Hunter, Managing Director of iProspect Pacific, announced today the launch of iProspect in New Zealand. The new office is part of iProspect’s continued worldwide expansion designed to offer marketers a seamless global search marketing solution.

“We are truly delighted to bring New Zealand into the iProspect family. The opening of this office is significant as the New Zealand market has lacked a top-tier search marketing offering,” said Peter. “Our presence in New Zealand will have a considerable impact and provide search marketers with the experience, expertise, sophisticated tools, and impressive results that iProspect is known for across the globe,” he added.

“By having iProspect offices in major markets around the globe, our New Zealand clients will get the best of both worlds – local market knowledge combined with sophisticated tools and techniques. Together it’s a combination that provides significant benefits to our clients,” Peter said.

Ryf Quail, currently Digital Director of Carat New Zealand, will head up iProspect in New Zealand. Ryf is a pioneer in the digital industry with over 15 years experience in digital and media. He was the Media Director for WSA Online, Australia’s first interactive agency of the year in 1998. He built WSA Media into the largest digital media agency in the country before selling the business to Emitch.

Ryf has also been Managing Partner of digital at Razor in Australia, working with clients such as Nike, SBS, RaboPlus (RaboBank), Navman and HCF.

Ryf will be joined by Ivan Atkins who has been managing strategy planning, negotiation, execution and measurement of online campaigns for Carat clients. Ivan has also recently returned from Hong Kong where he attended the iProspect University.

iProspect was founded in the USA in 1996 and acquired by Aegis plc in 2005. The services of iProspect include natural search engine optimisation, paid inclusion management, pay per click advertising management using Aegis’ own patent-pending bid management tool iSEBA®, feed management, search leveraged public relations, and Web analytics. These search engine marketing services are tailored around each client’s unique needs, capabilities and business model in order to increase the number of potential customers that visit their websites.

It also improves the rate at which those visitors take desired actions once they arrive, and provides in-depth analysis on which clients can base continual optimization of their marketing efforts and make informed marketing decisions.

“For New Zealand, search is about creating commercial advantage for clients by capturing interest generated by their advertising, their competitors’ advertising and other market factors. It may well be that for many New Zealand clients and categories this is new thinking and, if applied correctly, it will give them the jump-start to their businesses they are demanding from agencies in times like these,” Ryf said.

Press Release: 10 September, 2009

Twitter users are more likely to review or rate products

Tech and media research firm “Interpret surveyed over 9,200 internet users in August, finding that roughly 24% of the respondents that used Twitter, reviewed or rated products online; just 12% of people that used other social nets—but not Twitter—said the same. Twitter users were also more likely to visit company profiles (20%) than non-Twitter users (11%), and twice as likely to click on ads or sponsored links (20% vs. 9%).”

Read more: http://paidcontent.org/article/419-study-twitterers-more-receptive-to-ads-than-other-social-net-users/

Online Advertising Overtakes TV Advertising in the UK

"In the first half of 2009 internet advertising weathered the recession and grew by 4.6% to £1,752.1m, despite the entire advertising sector contracting by 16.6% during the same period.

According to the bi-annual online advertising expenditure study from the Internet Advertising Bureau (IAB) - the trade body for digital marketing - in partnership with PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC) - the internet has now overtaken TV advertising to become the UK’s single biggest advertising medium.

The UK remains the world leader in terms of market share for online, with the medium accounting for 23.5% in the first half of 2009. The results signal a significant restructure of marketing budgets as advertisers follow their audiences online and look to the internet for even more measureable and accountable methods."

Read more: http://www.iabuk.net/en/1/adspendgrows300909.mxs#

TVNZ Media Commission Plans

TVNZ’s planned reduction in media commission has given us all something else to focus on after the months of angst around challenging times, shrinking marketing budgets and how to best leverage the resulting soft demand media environment for client competitive advantage.

The reduction in commission is a serious issue for advertisers and their agency partners. No official statement or commitment about corresponding rate changes has been issued yet. There have been several verbal platitudes that of course rates will be adjusted accordingly and that this move is not driven out of a desire to increase costs to advertisers. Frankly this is not believable. The only reason for a media company to drive such an initiative is to increase yield off inventory. Therefore the plan has to be, at the time the reduced commission comes into effect, to manage the rate position to deliver some level of revenue increase.

Carat is diametrically opposed to any move that could see media costs to our client partners inappropriately inflated and will be ever vigilant for hidden rate increase as this plays out.

As the new Sales Director at TVNZ I learnt very quickly, after being left to defend an outrageous rate increase dropped on the market during another historically soft media market period by my predecessor that just because you put up the rates doesn’t mean the money automatically follows. This is a demand driven market and the power of the advertiser is that you can speak with your dollar.

This move could also easily push some advertisers out of the medium further exacerbating the soft demand cycle and minimizing any benefit TVNZ hopes to gain for itself. I can’t help thinking that at some point in the future some other TVNZ CEO or Sales Director will look back and go “what was the point”!

The fact that TVNZ positioned this review as being in response to demands from agencies and clients further heightens our chagrin around this move. A self serving and cynical approach. Yes it may be timely for discussion around fee models between some clients and advertisers. In many cases a link to commission for agency remuneration isn’t appropriate anymore and fees for specific service deliveries are more relevant. It is unfortunate that these discussions, best held within a context of productive partnership, are now to be driven within the “muddy waters” of TVNZ’s agenda.